We keep track of current money and capital market interest rate developments in a table on the basis of which the average market interest is calculated. Below you can see the rate history of revolving credit of the Nederlandse Voorschotbank , InterBank , Defam , Nationale Nederlanden Bank and Sygma Finance . In this way you can see exactly how the variable revolving credit interest of these banks develops in relation to each other and in relation to the average market interest rate.
What is the interest of a loan based on?
The Euribor rates are often used as a measure of the money market interest. These are the rates at which 57 European banks borrow money among themselves for the short term. These Euribor rates are determined daily and are often used as the basis for a large number of financial products. You can think of savings, mortgages and consumer credit. As soon as the Euribor rates go in a certain direction, you see that the rates of these products follow. If you want to estimate the future interest rate development of your revolving credit, it is therefore wise to keep a close eye on the development of the money market interest (Euribor rates).
Government bonds are often used as a measure of capital market interest. Given the low risk of non-payment (debtor risk) with a Dutch government loan, this rate often applies as a basic rate. Other loans with higher risks have an interest surcharge for the higher risk, whereby the surcharge becomes higher as the debtor risk increases. In addition, it normally applies that the interest rate increases with a longer fixed-rate period. Capital market interest is also important for mortgages and consumer credit. With loans with a longer interest period, the mortgage interest and the loan interest often move with the capital market interest.