QUESTION: What is full loan cost (PSK) and where to find it in the contract?

The full loan cost indicator is a crucial parameter of financial obligations, expressed as an annual percentage, that reflects all the borrower's actual expenses. This value includes not only the principal debt and accrued interest, but also mandatory insurance, account opening and maintenance fees, and the cost of additional services imposed during the contract execution. Knowing this indicator allows you to objectively assess the financial burden and compare offers from different banks on the market.

According to current legislation, financial organizations are required to place this information in the most prominent place. Usually, it is indicated at the very beginning of the loan agreement or loan application, framed in a separate box in the upper right corner of the first page. In addition, this indicator is duplicated in the individual crediting terms and in the payment schedule itself, which is attached to the agreement.

To find this information yourself, carefully review the first two or three pages of the documents issued by the bank. If you are applying for a loan online, look for the section with individual terms in advance or download the full text of the agreement before signing. Please note that the full loan cost in percentages must always be printed in a clear font so that the borrower can assess the scale of upcoming overpayments in advance.