This is how we calculate your loan

The interest you pay on your loan comprises several components. As a bank, we also pay interest on our money. Read on to learn how interest is calculated. 

1. Basic rate
   As a bank, we borrow money on the money and capital markets so that we can provide loans. For this we pay interest, for example.  
2. Capital costs
   We incur costs for procuring money and holding it over an extended period of time. These costs are higher if we have to keep the money longer.
3. Operating costs
   These are costs that we incur so that we can offer and manage loans, costs like paying our staff, leasing office space and maintaining systems. 
4. Risk costs
   Circumstances occasionally arise that result in a client not repaying their loan. That’s a risk we need to take into account, and it’s why we create a risk profile for each client. The level of the risk costs we calculate depends on factors like the client’s income and how much the client is willing to borrow, for example. 
5. Profit
   ABN AMRO is a commercial enterprise and so we use part of the interest to make a profit. With this profit, we can continue to offer loans to our clients in the future as well.