If we do not repay the consolidated debt in a timely manner, then we risk charging interest for the delay in repayment. Of course, the lender may also charge us with additional fees, for example for reminding about consolidated debt, and may also refer the case to a consolidated debt collection company which will apply additional costs . Therefore, a delay in repayment or a total failure to repay the loan may cost us a lot.
We can expose you both for a bank loan and for a non-bank loan for charging interest for delayed repayment. They are calculated from the first day of delay. Then, when we are only a few days late with repayment, they will not be high, but if it is a much longer period, we may have bigger problems.
From 1 January 2016, new rules for determining statutory, maximum and delayed interest came into force. It was introduced by the Act of 9 October 2015 amending the act on payment dates in commercial transactions, the Civil Code and some other acts (Journal of Laws 2015, item 1830). Let’s focus here on statutory interest.
Statutory interest for delay
According to art. 481. par. 1 kc in a situation where the consolidated debtor is late with the performance of a cash payment, the creditor, i.e. a lender, may claim interest for the delay. This applies even if the creditor did not suffer any damage and even if the delay was due to circumstances for which the consolidated debtor is not liable.
Under the new rules, if the rate of interest for delay is not pre-determined, the creditor may receive statutory interest for delay in the amount equal to the sum of the NBP reference rate and 5.5 percentage points. Currently, they amount to 7% per annum.
Maximum interest for delay
The maximum interest may be charged when the consolidated debt is bearing interest at a rate higher than statutory interest. Then the creditor may still demand interest for the delay in accordance with the value of the higher rate.
From the beginning of 2016, the maximum interest rate for delay has been applied. According to the regulations, the maximum amount of interest for delay can not exceed twice the statutory interest rate for delay per annum, i.e. it can not be higher than 14% per annum.
How to calculate the amount of interest?
If we do not know what interest we are exposed to when we do not repay the loan in a timely manner, we can use special interest calculators that we can find on the internet. In the calculator, we will have to enter the payment date resulting from the contract and the date of payment, as well as the amount of the obligation. Then we can easily calculate how much we will have to give to the lender.
However, it is best to repay your liabilities in a timely manner – then we do not expose ourselves to any additional costs resulting from delays. It is worth thinking about this at the time of borrowing, namely to calculate what amount of loan installments will be the most advantageous for us and will not be an excessive burden on the budget.