Difficult financial loan terms that you never heard of before

Do you ever have that? That you are looking for information about borrowing money and that you suddenly come across concepts that you have never heard of before? Such as the ‘ Annual percentage rate (APR) ‘, ‘Wft’, ‘Current account credit’, ‘commitment fee’ and many other financial concepts and jargon. We explain some of these concepts to you. Just because it is fun to dive into this difficult subject.

What is the ‘Annual percentage rate’?

The Annual percentage rate is abbreviated with APR . If you are calculating your loan with a calculation example today, you will find the APR alongside the debit interest rate. This is always the debit interest times the costs that the bank or lender charges you. This is important to you. Because if both the Annual percentage rate and the debit interest rate are equal to each other, this means that the lender does not charge extra costs! The lending rates are low in August. But you can save even more on your loan if a credit provider does not charge you for advice.


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Wft means ‘Act on financial supervision’. This brings together rules and regulations for all financial markets. Do you doubt whether a bank will keep to the rules? Then switch on the AFM.

‘Preparing fee’

If a bank prepares a mortgage offer because you want to take out a mortgage, but you do not respond in time, the bank may charge a commitment fee. You must then pay about 0.25% commission per month to the bank. The quotation date must be clearly stated on each mortgage quote and also the latest date of the insurance. Keep an eye on …

‘Current account credit’

You want to borrow money and suddenly come across a financial concept that you can not place: The ‘Current account credit’. Is this a new kind of credit? Well. This is one of the many names for old-fashioned red standing at the bank . It is also called the ‘credit on payment account’. Find yourself the meaning of these latest financial concepts: