TIN or nominal interest rate

Financial activity is formed by a large number of figures that provide for adequate performance of the duties and conditions of this market, among which is the interest and the media as these are generated from the savings and credits, but to know it is the interest, it is necessary to know how you can enter the interest or profit due to or arising out of debt interest and this requires going to the types of indicators exist for measure the interest, which are the TIN and the APR.

Thus to understand a little more curb the activity of financial institutions is necessary to meet the TIN or nominal interest rate and the difference that occurs because of the APR or annual percentage rate.


The TIN or nominal interest rate is the percentage that is applied when performing the payment of interest, which in this case is the specific amount or percentage to be evaluated each month.

Speaking in other terms when referring to the TIN will be talking about the profitability or interest arising from financial products, is a mortgage, a savings account, so generally indicate that index is month to month, but also be given for a period of time especially following the main period tests handled.

This suggests the idea that the nominal interest rate cap is a type of simple, since you can divide the interest payment periods and the financial product is still in force, but it is also the possibility that only measurement of interest when the final product, which would be a point where there would be a similarity between the TIN and the APR and the total interest that you would agree to give two forms of measurement, were of course when give several payments over the measurement with the TIN, the total amount of interest will be lower compared to that on the basis of APR.

The nominal interest rate will then place the interest derived from a given product is capitalized more than once in the course of a year, as can be given for periods, which distinguishes it from the APR which only gives accommodate one measurement per year.

Something worth noting in the figure of the TIN or nominal interest rate is that this conventional rate is determined by the central banks of each country with the idea of ​​regulating in an appropriate manner both active operations by loans and credits that are given for passive operations such as deposits and savings, which in more global terms would also be a regulation that makes the financial system itself acting as a ceiling for bank operations.

Related posts:

1. Interest In today’s world economy include the presence of financial markets...
2. The interest rate on mortgages The rate of loans is made up of two elements:...
3. Interest rate swap The swap , also known as interest rate swap ,...
4. The interest rate The interest rate that is applied to a mortgage (also...
5. Loans at low interest rate Car – How to get approval Get approved for an auto loan interest rates low may...

back to Consumer Credit.