How does Flexible Consumer Credit work?
Like its name suggests, Flexible Consumer Credit is flexible. After Flexible Consumer Credit has been granted to you, you can take it out in multiple drawdowns. As you repay your debt, you can draw it down repeatedly whenever you need to. In other words, Flexible Consumer Credit works like a credit card but without a payment instrument.
The term of payment is also flexible since you can change the monthly instalment and its due date at any time.
Changes to payment plan
You can make changes to the instalment and due date of Flexible Consumer Credit. You can also choose one grace month per year. During the grace month, you do not repay the loan principal or pay interest. The grace month is free of charge, and it is the same month every year. Each loan repayment bill is created three weeks before its agreed due date. You can modify an upcoming repayment if its bill hasn’t been created yet. Apply for a change to your repayment plan in good time so that it can take effect from the instalment you want.
Please note that the self-service channels can only be used to make changes to loans that have been managed well.
Faster repayment of Flexible Consumer Credit
You can make extra loan repayments yourself in OP-mobile or at op.fi at any time. Extra repayments will not reduce the size of your monthly repayments but your total loan amount. In other words, they will shorten your total loan term.
Paying off and terminating Flexible Consumer Credit
Although Flexible Consumer Credit is a revolving credit, you can repay it in larger instalments than agreed or pay off the entire loan at once. After you have paid off all your Flexible Consumer Credit balance, the entire credit facility will be again available to you without a new application.
In other words, paying off your Flexible Consumer Credit does not mean the end of the loan agreement. If you want to terminate your Flexible Consumer Credit, after which it will no longer be available to you, the easiest way to do it is to send us a message through the op.fi service or OP-mobile.
Costs of Flexible Consumer Credit
Flexible Consumer Credit is a revolving credit, and its costs consist of interest and the loan servicing fee, in addition to the loan amount. The loan servicing fee is charged each month, even if the credit was not in active use (drawn down).
You make a monthly repayment of an agreed amount but at least 2,5% of the credit limit and a minimum of 50 euros. You can choose the 1st, 8th, 16th or 24th day of the month as the due date. After you have paid back some of the credit, you can withdraw it again for your use in OP’s digital services.
Costs of Flexible Consumer Credit:
- Credit interest rate, 3-month Euribor + 7.95 % (10,87 % in December 2024)
- A monthly loan servicing fee of 6 euros
Example calculation:
Flexible Consumer Credit is a revolving credit whose effective interest rate for the loan of 2 000 euros is 17,79 % when the loan interest rate is a 3-month Euribor + 7,95 percentage points (10,87 % in December 2024) and the loan servicing fee is 6 euros per month.
The estimated total amount payable would be 2 177,08 euros. This calculation is based on the assumption that the entire loan is withdrawn and that the interest rate and charges and fees remain unchanged throughout the loan term. It is also assumed that the loan is repaid in the monthly minimum repayments of 225 euros, resulting in a loan period of 12 months.
