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Equal (annuity) instalment (rata równa)

An instalment that is the same every month as long as the interest rate does not change. At first you mostly pay off interest, and over time an increasing share of the principal.

This is the most commonly chosen option, because the first instalments are lower than with decreasing instalments, which helps your creditworthiness. On the other hand, the total interest over the whole term is higher.

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These definitions are for information only and describe the law in simplified form — they are not legal, tax or financial advice. Lendean is not a credit intermediary. Always confirm the details in your contract, with a notary or with the bank.

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