The interest rate is the main element on which interest is calculated. It is expressed as a percentage, in annual format. 

For example, an interest rate of 9% means that in order to borrow, say 1,000 lei for 1 year, the customer has to pay 9%. The actual amount to be paid is called the interest rate. In the above case, the interest is 90 lei (1,000 x 9%). 

Good to know: In the case of a loan, interest is usually calculated monthly. 

Speaking of interest, you should know that we have even prepared a short guide in which we tell you in a light-hearted way about some banking terms that are good to know. 😊