Information on the external environment

How does Froda affect the key interest rate?

Froda finances its lending to companies with deposits from the public through our savings accounts. The deposit rate that Froda offers for the savings accounts is affected by the current interest rate and market situation. Due to the increase in the key interest rate, we have therefore had to increase the interest rates for our savings accounts. However, the increase in the deposit rate has led to a sharp increase in our funding costs in recent years.

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Why have you raised the savings rate?

Lending money to businesses requires that we have money available to lend. To be able to do this, our savings accounts must have a competitive interest rate compared with the rest of the market for savings accounts in Sweden. As the increase in the key interest rate has led to an increase in the general level of interest rates for savings accounts in Sweden in recent years, we have needed to raise our savings rates in order to continue to have money available to lend to companies.

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Will it affect the interest rate on my business loan?

As far as possible, we will endeavor not to increase the interest rates on loans already issued. However, due to the increased cost of deposits, we may need to adjust the interest rate for a small number of customers in accordance with paragraph 4 of the general terms and conditions of the loan agreement. We will do this to ensure that we can continue to offer the same service as before.

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If so, how will this affect my refund?

In the event of an interest rate increase, each loan will be affected individually. By logging in to My Pages, you can see your new interest rate and how it will affect your repayment. On My Pages, you can also see if you have the option to change your repayment period in case you want to adjust the cost of each repayment.

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Could you raise interest rates several times?

Whether or not we might make multiple price adjustments depends on the development of the policy rate and the general interest rate environment.