The layoffs caused by the coronavirus have overwhelmed unemployment funds and many Finns are having personal finance difficulties. As part of our partnership with Akava, Danske Bank is offering a layoff loan, i.e. financing for a temporary need at a reduced margin and without any origination fee, to existing customers who are members of a trade union affiliated to Akava.
As its name suggests, the Layoff loan is intended for Danske Bank customers for are temporarily suffering financially as a result of the coronavirus crisis and who are members of an Akava affiliate union. The loan, which may range from €2,000 to €15,000, is unsecured and the interest margin is 2.9% (normally 4.9-7.9%)*. The offer will continue on a temporary basis until the end of 2020.
*) The interest rate of the loan is linked to the 12-month Euribor reference rate. A margin of 2.90 percentage points will be added to it. The product is Danske Bank’s One-Time Loan. The Annual Percentage Rate of the loan is 3.64% calculated with a 12-month Euribor reference rate added with a margin of 2.90 percentage points for a credit of €7,500 (24 April 2020). The estimated total amount payable of credit and interest and fees is €8,208.57, calculated for a credit of €7,500 (24 April 2020), including the credit origination fee of €0, invoicing fees of €2.50/month and a credit term of five years, totalling €150. The estimated total amount of credit payable and the Annual Percentage Rate of the loan have been calculated with the assumption that the credit period is five years, the credit is immediately disbursed in its entirety, and the interest rate and service fees remain unchanged throughout the credit period, and that the credit is paid back in 60 equal payments one month apart. The calculation takes into consideration the expenses related to the setting up, disbursing and contractual collection of the credit. This is not a loan offer. Granting the loan is always subject to an approved credit decision. Danske Bank verifies the personal credit record of the customer with Suomen Asiakastieto Oy before making a credit decision.