10. What are the most significant credit-related expenses?
When considering a bank credit, pay attention not only to interest rates and maturity, but also to credit-related expenses. If all expenses listed below are summed up, they can result in a quite substantial amount thus making the credit more expensive.
Significant expenses are as follows:
a. front-end fee (1-2% of the total amount of credit)
b. real estate appraisal fee
c. collateral protection insurance fee, pledge registration fee
d. fees for legal and notarial services
e. taxes