Wprowadzający w błąd jednakowy poziom wskaźnika RRSO dla droższego kredytu w ratach równych i dla tańszego w ratach malejących
Misleading Equal Level of the Aprc for a More Expensive Loan in Equal Instalments and for a Cheaper One in Decreasing Instalments

Summary/Abstract: The aim of the research was to analyse the level of the APRC and the amount of interest costs in thesystem of loan repayment in equal and decreasing instalments depending on the amount of loan, thelength of loan period and the level of interest. Based on the analysis and criticism of legal acts, thescarce literature on the subject and the results of the comparative analysis of case studies, a synthesisof conclusions was made through the inductive reasoning method. The conducted analysis is meantto fill the gap in the Polish literature in the area of calculation and comparison of the cost of loan – anissue of great importance for the financial security of consumers in a situation of increasing availabil-ity of capital and growing debt of Poles. The analysis of case studies showed that a loan repaid in equalinstalments (i.e. with higher interest for the entire loan period) has the same level of APRC as the sameloan repaid in decreasing instalments (i.e. with lower total interest). The same level of the APRC there-fore wrongly suggests that both methods of loan repayment (in equal and decreasing instalments) areequally expensive for the borrower, despite the fact that in the case of repayment in equal instalmentsthe total interest is several dozen percent higher than in the case of decreasing instalments. This de-nies the usefulness of the APRC for comparing the cost of loan and confirms that the APRC showsthe cost of loan contrary to the common understanding of it. The analysis also shows that in the caseof loans with decreasing instalments, the scale of cost overstatement by the APRC is high (reaching100%) and greater than for equal instalments and is the greater the shorter the credit period and thehigher the interest rate on the loan. In the case of loans with equal instalments, the scale of the costoverstatement by the APRC reaches several dozen percent and is greater the longer the credit periodand the lower the interest rate on the loan.

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