Loans in currencies less and less profitable
For many years, a loan in a foreign currency was associated with a low installment, much more favorable than in the case of a liability in our native currency. Currently, due to NBP interest rate cuts, the installment of the zloty loan has been falling and is sometimes much lower than the loan
in Swiss franc or equal to a loan in euros
The loan interest rate changes throughout the loan repayment period, mainly under the influence of the changing reference rate, for loans in PLN it is Wibor, in Euro – Euribor, and in Swiss franc Libor. As a rule, reference rates are updated every three months. For loans in Swiss franc, the Libor rate has not exceeded 0.5% for over 4 years, and has oscillated around 0% for a year.
Also in the case of Euribor, which is responsible for the interest rate on the loan in euros, we have been recording this rate around 0.2% for over 12 months. Due to low Wibor, the interest rate on loans in PLN has also decreased significantly recently. Therefore, the key question remains, how did changes in interest rates and reference rates affect installments?
Installments higher than in PLN
The Swiss franc loan taken in January 2008 was analyzed, i.e. at the time when this currency was the most popular among Polish borrowers. Over the past five and a half years, loan installments have remained at a similar level, but the current installment is higher by about 13 percent. Such a relatively small change in installments occurred despite a much deeper weakening of the zloty.
During this time, the CHF / PLN exchange rate increased by over 50 percent. The loan installment has not risen that much due to low interest rates in Switzerland. For many years, this installment was lower than the installment of a similar loan in PLN also incurred in 2008. Due to interest rate cuts in Poland, the zloty loan installment has become lower for several months. Today, less pay people who took a loan in 2008 in zloty. However, borrowers in CHF have paid significantly less interest over the current repayment period.
- loan in the amount of PLN 200 thousand, contracted in January 2008, repayment period of 30 years,
- loan margin in CHF – 1.10 pp,
- loan margin in PLN – 0.90 pp
Loan in EUR – the difference decreases
The loan in euros was also analyzed, but taken out in January 2011, when the currency was the most popular. In this situation, people who repay a currency loan still pay less than those who chose a loan in PLN. However, the difference between installments is narrowing. Today it is 10 percent and it can be said that it is only 10 percent, because at the time of contracting the loan installment in PLN was higher by almost 50 percent.
- loan in the amount of PLN 200,000, taken out in January 2011, repayment period of 30 years
- loan margin in euros – 2.00 pp,
- loan margin in PLN – 1.50 pp