Preferential Interest Rate

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Preferential Interest Rate. The preferential interest rate is the interest rate that entities apply, at all times, to their clients with greater solvency included in the private sector in the contracting of credit operations in euros, whatever their modality, in the short term and of an important amount.

He prime rate is expressed only in equivalent annual rate overdue term (APR), as a means of matching offers regardless of the contractual settlement period. It is in it that the clients of financial institutions should pay attention since it is the annual interest rate that is actually charged or paid.

Video: APR vs. Interest Rate: What You Need to Know


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