Financial glossary

Annual Percentage Rate of Charge. The EU-wide standardized measure of the total cost of a loan, expressed as an annual percentage. Equivalent to the Croatian EKS. Required to be displayed in all consumer credit advertising across the EU.

A loan granted to an individual for personal, household, or non-business purposes. In Croatia, consumer credit is regulated under the Consumer Credit Act, which implements the EU Consumer Credit Directive. Specific disclosure requirements apply.

Effective Interest Rate (Efektivna kamatna stopa in Croatian). The true annual cost of a loan, including the nominal interest rate plus all mandatory fees and charges. The most reliable way to compare loan offers from different lenders.

Euro Interbank Offered Rate. A reference interest rate published daily, reflecting average rates at which European banks lend to each other. Many variable-rate loans in Croatia are priced as EURIBOR plus a fixed margin. Changes in EURIBOR directly affect monthly repayments.

European Standardised Information Sheet. A pre-contractual document that mortgage lenders must provide to consumers before signing. Contains key information including the EIR, total repayment amount, conditions for rate changes, and early repayment rights.

An interest rate that remains constant for a specified period or the entire loan term. Provides payment certainty but may be higher than the initial variable rate. The fixed period and what happens after it ends must be clearly stated in the loan agreement.

Hrvatska narodna banka (Croatian National Bank). The central bank and primary financial regulator in Croatia. Supervises credit institutions, issues regulations on consumer protection in financial services, and operates the out-of-court dispute resolution procedure for consumers.

A loan secured by a charge over real estate, typically used to finance property purchase. In Croatia, mortgage credit is regulated under the Mortgage Credit Act. Lenders must provide an ESIS document, a 14-day reflection period, and specific information about early repayment rights.

The base interest rate stated in a loan contract, expressed as an annual percentage of the outstanding principal. Does not include fees, charges, or insurance costs. Always lower than or equal to the EIR. Should not be used as the primary basis for comparing loan offers.

The right to cancel a consumer credit agreement within 14 calendar days of signing, without giving any reason and without penalty. This right is guaranteed under EU and Croatian law. The lender must inform you of this right before you sign the agreement.

Standard European Consumer Credit Information. A pre-contractual document that consumer credit lenders must provide before signing. Contains the EIR, total repayable amount, repayment schedule, and rights including the right of withdrawal. Equivalent to ESIS but for consumer credit rather than mortgages.

An interest rate that changes over the loan term based on movements in a reference index such as EURIBOR. When the reference rate rises, your monthly repayments increase. The loan agreement must clearly state which index applies, how often the rate adjusts, and any caps on rate changes.

The right to repay a loan in full or in part before the scheduled end date. For consumer credit, lenders may charge a fee for early repayment, but this fee is capped by law. For mortgage credit, the conditions and any applicable fee must be clearly stated in the ESIS before signing.