Understanding three abbreviations lets you objectively compare two credit offers.

NIR — Nominal Interest Rate

This is the base interest rate applied to the borrowed capital. It's what ads highlight, because it is usually the lowest. At CREDITO SOLIDARIO, the NIR is fixed at 3%.

APR — Annual Percentage Rate

This is the rate that truly matters. It includes:

  • The NIR.
  • File fees.
  • Borrower insurance costs, if compulsory.
  • Any other charge related to obtaining the credit.

APR is the only figure that lets you compare two credit offers on the same basis. An offer at 2% NIR + 3% fees may have a higher APR than one at 3% NIR with no fees.

TCC — Total Cost of Credit

This is the concrete amount you will return in the end: capital + interest + fees + insurance. The most telling figure.

A concrete example

For €10,000 over 60 months at 3% NIR with no fees: instalment €179.69, TCC €10,781.60, APR identical to NIR (3%). With us, no difference between NIR and APR, because there are no ancillary fees. That transparency has been our rule from day one.