Variable interest rate
The variable interest rate on a loan consists of the reference rate you have chosen for the loan, i.e. the market rate, and the margin set by us. As the name suggests, the variable rate changes in line with market interest rates.
Margin
The margin of a loan is agreed separately with each customer and for each loan. The margin covers our expenses and the risk we take by granting the loan.
Euribor and Nordea Prime are variable reference rates
A reference rate is a market interest rate that’s used to set a price on loans, such as home or student loans. The value of a reference rate is publicly available to everyone. The reference rate in the eurozone is the Euribor, and Nordea Prime is our own reference rate.