apply interest rate vs charge interest rate

Both phrases are correct, but they are used in different contexts. 'Apply interest rate' is used when referring to the action of assigning or implementing an interest rate to a financial product or transaction. On the other hand, 'charge interest rate' is used when talking about the process of levying or imposing interest on a loan or credit. They are not interchangeable as they convey different meanings.

Last updated: April 01, 2024 • 657 views

This phrase is correct and commonly used in financial contexts.

"apply interest rate"

This phrase is used when referring to the action of assigning or implementing an interest rate to a financial product or transaction.

Examples:

We will apply an interest rate of 5% to your savings account.
The bank will apply a variable interest rate to the mortgage.
The credit card company will apply an annual interest rate to your balance.

Show examples from the web [+]

The very same thing applies to Interest Rates.
It had been provisionally decided to apply a general interest rate of 9,03 % for the purpose of this investigation.
Under Spanish legislation, the TGSS may conclude debt rescheduling agreements provided that it applies the legal interest rate in force when the agreement is concluded.
The interest rate applies to all entries of own resources enumerated under Article 10 of Regulation (EC, Euratom) No 1150/2000.
For those financial assets, the entity shall apply the effective interest rate to the amortised cost of the financial asset in subsequent reporting periods.
The written question suggests that it is general practice of the Italian credit institutions to apply extremely high interest rates to southern Italy enterprises for loans while northern Italy enterprises benefit from very favourable lending conditions.
Finally, Italy takes the view that the remuneration mechanism provided for in the Agreement, which applies short-term interest rates to the volatile component of the funds collected in postal current accounts, makes a proper estimate of the real liquidity risk borne by the Treasury.
The instrument is also in line with market conditions under the 2008 communication, as the IBG Fund assesses the credit risks of each enterprise, including the level of subordination and collateralisation, and applies risk-adjusted interest rates.
The following requirements shall apply to contributors to interest rate benchmarks, in addition to the requirements set out in Article 16.
an amortisation table, also where a variable interest rate applies: point (i),
A Participant providing official financing support through direct financing, refinancing or interest rate support shall apply minimum interest rates;
the failure to notify and apply reductions in interest rates and hence in instalments for creditors in the event of interest rate reductions; -
If multiple tranches with different interest rates then apply a weighted average rate.
Favourable rates that reporting agents apply to their employees are covered by MFI interest rate statistics.
In order to calculate interest rate risk position, institutions shall apply the following provisions.
Consequently, interest rate arbitrage strategies shall not apply those netting rules.
If Member States apply that method, the interest rate does not contain State aid.
Spain undertakes to apply a spread of 65 basis points over the reference interest rate.
If the interest rate notified by a Member State is higher than the uniform interest rate fixed for the Community during the reference period, the uniform rate shall apply.
The Participants providing official financing support shall apply either a minimum floating interest rate or a minimum fixed interest rate, in accordance with the provisions of Appendix III.

Alternatives:

set an interest rate
determine the interest rate
establish the interest rate
fix the interest rate
assign an interest rate

This phrase is correct and commonly used in financial contexts.

"charge interest rate"

This phrase is used when talking about the process of levying or imposing interest on a loan or credit.

Examples:

The bank will charge an interest rate of 10% on the loan.
Credit card companies often charge high interest rates.
The lender may charge a penalty interest rate for late payments.

Show examples from the web [+]

In the case of customer default of payment, we are authorized to charge interest rates of 5% min. per year.
The municipality of Asker will not charge any interest rate on this second instalment.
On the one hand, the banks try to create as many deposits as possible, because on every new credit they charge high interest rates.
They charge a high interest rate.
It is therefore difficult to assess the quality of investment propositions, and even harder to charge an interest rate that accurately reflects the level of risk involved.
However interest rate caps can prevent lenders from covering their costs of lending and force people to borrow from loan sharks that charge even higher interest rates.
Creditors will be entitled to charge a statutory interest rate on their debts, encouraging debtors to pay early.
We cannot understand why the European Union is going to charge Portugal higher interest rates than the International Monetary Fund.
the central bank charges a penal interest rate to the beneficiary,
The report considers that restrictions on early repayment charges and interest rates are likely to restrict the development of new products, especially those for higher risk borrowers, as well as the development of the funding market.
In the longer term higher interest rate charges would have reduced VAOP's ability to repay its loan to BNG.
If the Client is late in making payment, WorldLingo is entitled to charge interest at the rate of 2 % per month or part thereof until the entire amount due is received.
If the investor believes there is a risk that the borrower could have difficulties paying back the loan, they will charge a higher interest rate on the loan.
If the investor believes there is a risk that the borrower could have difficulties paying back the loan, they will charge a higher interest rate on the loan.
6.2. If payment has not been made on time, the Supplier shall be entitled to charge interest at a rate of 9 % p.a. above the basic Interest rate of the European Central Bank from the day the payment becomes due.
The approach to capture the incremental default and migration risks shall cover all positions subject to a capital charge for specific interest rate risk but shall not cover securitisation positions and n-th-to-default credit derivatives.
on charges, interest and exchange rates:
As regards the conversion of the unpaid interest rates into a loan, the City of Mikkeli agreed to charge a very low interest rate for the loan.
It charges its borrowers an interest rate based upon the rate it has to pay for the funds.
In this situation it is absolutely right to say that our past defines our future. On the other hand, the lender charges a bit high interest rate from the bad credit scorer in order to balance his risk.

Alternatives:

impose an interest rate
levy an interest rate
apply interest charges
enforce an interest rate
implement an interest rate

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apply interest rate vs charge interest rate