- You will benefit from a low Euribor rate and any decreases in the reference interest rate.
- You can be certain that the interest rate will not increase above the agreed level.
- The interest rate hedge can be taken for a shorter period than the loan, as the amount of interest makes the most difference at the beginning of the loan period when the loan principal is high.
- When the Euribor rate falls below the selected interest rate cap, the loan's reference interest rate will track the Euribor. This enables you to benefit from a low Euribor rate and the possible decrease in interest rates. If the Euribor rate rises, the reference interest rate will not exceed the interest rate cap you have selected.