Why are the interest rate and other fees associated with the loan so important?

You can save money when you borrow at a lower interest rate. For example, if you borrow 2000 EUR for 5 years at a 10 % rate, you will pay 590 EUR in interest, and with a 20 % rate you would pay 1219 EUR. This means that, when you borrow at a 10 % interest rate, you will be able to save 629 EUR over the whole repayment period. It is also important to pay attention to the other fees associated with your loan, such as the monthly administration fee and processing fee. There are times when a loan with a higher interest rate is better value overall due to these additional payments.

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