Effective interest rate is fixed or indexed annual interest rate under credit or deposit contract, determined for specific period of time. All necessary financial expenses are included in it, considering the period of incurring such expenses by the customers.

As a rule, amount of consumer loan in comparing with the mortgage loan is smaller. Thereby, unlike consumer loan, mortgage loan has specific purpose - buying, building or repairing of immobile property. In case of mortgage loan, immobile property is mortgaged and if the customer fails to fulfill the taken liabilities during the loan period, Bank is entitled to realize the immobile property. Unlike mortgage loan, small consumer loan is not secured, though there is secured consumer loans as well.

Credit card is a card, which allows the owner to execute operations pursuant to the bank contract and under specified credit line. Often, credit cards have privileged period, whereas interest rate is not accrued on consumed sum in case of full coverage. As a rule, only customers being listed in the salary program are eligible for overdraft. This is short term credit, being automatically refilled on every salary transfer, though limit is kept active and can be used any time.

Initial sheet of the contract is the integral part of the contract, superseding all the rest part of the contract. Information given in the initial sheet includes the following: nominal and effective interest rates, financial expenses related to product usage, amount of fines and other important contractual information. Initial sheet also includes whether how you can present your claim. This will help you to receive correct decision regarding usage of the loan/deposit product, as it fully explains major conditions of the contact.

Indexed interest rate is an interest rate, which is linked to some public index. Public index can be either rate or index, which cannot be influenced by the bank. For example, interest rate of the deposit account could be linked to the inflation, rate of the monetary policy, London Interbank Rate, oil or gold price, etc. in this case, it is necessary to verify given price by the internationally approved bank or stock.