Variable interest rate
(Loan represented in euros)Variable interest rate is prone to changes, meaning, it can rise or fall over time. It’s important to note that this interest rate also has a fixed and a variable part. The fixed part is the prime, and the other, variable part for loans in euros depends on the value of Euribor (the interest rate at which several European banks lend each other money).
Typically, this would be the values from a 3-month or a 6-month Euribor period. Loans referenced in euros are paid out in Serbian dinars and the instalments are paid back in dinars as well, but the loans are always tied to the exchange rate (typically the medium rate on the day of the loan repayment i.e., an instalment payment).
This link will take you to an impact calculator with projected variations of the nominal interest rate and/or the Serbian dinar exchange rate
NBS CalculatorFrequently asked questions
What is a variable interest rate?
A variable interest rate is an interest rate that can change over time. It can rise or fall depending on changes in the reference interest rate, such as Euribor.
How does a variable interest rate affect my loan?
A variable interest rate means that your monthly installment can change over time. If the interest rate rises, your monthly installments will increase, and if the interest rate falls, your installments will decrease.
What is Euribor?
Euribor (Euro Interbank Offered Rate) is the reference interest rate at which European banks lend money to each other on short-term loans. Euribor is often used as the basis for variable interest rates.
What is the difference between a fixed and a variable interest rate?
A fixed interest rate remains the same throughout the loan repayment period, while a variable interest rate can change. Fixed rates offer stability in monthly installments, while variable rates can be lower initially but come with the risk of change over time.
Can I switch from a variable to a fixed interest rate?
This depends on the bank's policy. Some banks allow switching from a variable to a fixed interest rate under certain conditions and fees.
How can I learn more about variable interest rates?
You can contact our loan advisor or use our variable interest rate calculator on this page to estimate monthly installments and total loan costs.
What is the difference between 3M and 6M Euribor?
The main difference between these two types of Euribor is the period for which the interest rate is calculated. 3M Euribor changes every three months, while 6M Euribor changes every six months. This difference can affect your interest rate and monthly installments, depending on which type of Euribor your bank uses as the reference rate for your loan.