In finance, the term interest cost is used to denote the total cost of interest charged for a loan. The interest cost is the entire amount of interest paid across the full loan term. This indicator clearly states the actual total cost of a loan.
If effective annual interest rates are used – as is the case with personal loans and credit cards in Switzerland as per the Swiss consumer credit law – the interest cost denotes the full cost of the loan, including fees and charges other than interest.
Before you get a loan, it is important that you understand the interest cost because that is how much you will pay for the loan. You can easily find the interest cost of a loan using the moneyland.ch loan calculator.
Swiss personal loan comparison