Before negotiating a loan, banks are obligated to provide the consumer with a personalised European Standardised Information Sheet. This document contains information on key loan features (type, amount, maturity, interest rate type), the amount and manner of nominal and effective interest rate calculation, frequency and number of annuities or instalments, provides an example of the effect on repayment of an increase in the variable interest rate and of the effect on repayment of a rise in the exchange rate where a loan is in a foreign currency or has a currency clause, etc. Owing to its standardised form and the scope of information it provides, the European Standardised Information Sheet facilitates comparisons of loans of the same type with different credit institutions. By providing this document, the bank fulfils its legally prescribed obligation to provide information, however, the user can always request additional information from bank employees to clarify the content of the document or loan terms. It is very important that the consumer uses all the possibilities for obtaining the necessary information so as to be able to make a competent financial decision and take personal responsibility for such a decision.
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