LET’S TALK A LITTLE ABOUT THE NBU’S PENALTY AND DISCOUNT RATE
If you read what you sign, you have probably encountered the wording “… a penalty in the amount of double the discount rate of the NBU for each day overdue from the amount of debt.” As a rule, we face this when we do not repay the loan in time. you should immediately divide the penalty in the bank and the penalty under the contract with another entity, because in the case of a loan, you will be able to accrue a penalty for only one year.
And now let’s understand in order what it is and how it is calculated:
- Penalty is one of the types of penalty, which applies only to financial relationships (you can not accrue a penalty for late delivery, supply of poor quality goods, etc., which is confirmed by case law).
- The amount of the penalty is indicated as a percentage of the amount owed or late payment and may not exceed the amount of double the discount rate of the NBU.
- NBU discount rate (without going into unnecessary details to disclose this topic) –m fixed, annual interest rate, which at the time of writing is 8%, but is constantly changing, so in 2019, the NBU rate reached 18%, respectively, double accounting NBU rate is the percentage of the rate today multiplied by 2.
- The formula for calculating the penalty is not complicated in principle, but to understand it from the first time is not so simple, by the way, there are calculators on the Internet that can roughly calculate the penalty. But I will try to explain on my fingers: 8 * 2/100/365 * amount of debt * number of days overdue = the amount of the penalty.
Thus, we divide the percentage of the double discount rate of the NBU by the number of days in the year, multiply by the amount of debt and multiply by the number of days in arrears. Thus, if we are overdue payment on the loan in the amount of 2000 UAH for the whole of May, we will be charged a penalty of 27 hryvnia 18 kopecks.
- Do not forget that the penalty is accrued on each payment separately, so if we overdue payment for May and June, the penalty for June will be considered not the same as for May, namely, the amount of debt will be 4027 hryvnia, 18 kopecks, penalty for June will be 52 hryvnia 96 kopecks, which means that for 2 months of delay we will owe 4000 hryvnia body and 80 hryvnia 14 kopecks, a penalty. (I think you caught the logic)
- The discount rate of the NBU is constantly changing, so before 24.04.2020 the rate was 10%, and after 8%, which means that we have additional problems in the calculations, because we take into account the rate that was in effect at the time of delay.
- As a general rule, the penalty is accrued only for 1 year, but in the contract it is possible to remove this restriction (however it does not concern banks)
- The penalty in any case may not exceed the size of the body of the debt.
Apply for legal assistance to the company “Prikhodko and Partners”. We will help you understand the legal details of your question.
Author: Ivan Ishchuk