What Is APR (RRSO)?
APR — Annual Percentage Rate (Polish: RRSO — Rzeczywista Roczna Stopa Oprocentowania) is an indicator expressing the total cost of a loan per year as a percentage of the borrowed amount. Unlike the nominal interest rate, APR includes all fees associated with the loan: interest, origination fee, insurance required by the bank, and even the cost of a bank account if it is a mandatory condition for disbursement.
Why APR Matters More Than the Nominal Rate
The nominal rate tells you only about interest. A bank may advertise a nominal rate of 6.5%, but with a high origination fee (e.g. 3%) and mandatory insurance, the APR rises to 9–11%. Comparing offers solely on nominal rates can easily lead you to choose a more expensive loan.
Two-Offer Comparison Example
Personal loan of 50,000 PLN, 5-year term:
- Bank A: nominal 7%, 0% fee, no required insurance → APR 7.2%
- Bank B: nominal 5.5%, 3% fee, mandatory insurance at 1%/year → APR 9.8%
Despite the lower nominal rate, Bank B's offer is several thousand PLN more expensive!
What Is Included in APR?
Under Polish consumer credit law (Art. 5 item 12), APR includes:
- loan interest,
- origination fee,
- mandatory life or property insurance,
- account maintenance fees if the account is required,
- any other fees required by the lender.
APR does not include notary fees, property valuation costs, or voluntary insurance.
APR for Mortgages vs. Personal Loans
Mortgages in Poland typically carry APR of 7–9% (2026), personal loans 10–20%, and payday loans can reach 100–200% or more. The shorter the loan term, the more one-off fees (origination) inflate the APR — which is why payday loans show such extreme values.
How to Compare Offers Effectively
- Always request the bank's Information Form (Formularz Informacyjny) showing APR for your specific amount and term.
- Compare APR for identical parameters (same amount, same term).
- Check whether insurance is included in the APR — ask for a quote without insurance.
- Use the APR calculator on Liczbnik.pl to independently verify the bank's figures.
Summary
APR is your most powerful comparison tool when choosing a loan. Do not be misled by a low nominal rate — always check the APR and compare offers on the same basis. A few percentage points' difference in APR can mean thousands of PLN saved or lost over the life of the loan.