In addition to companies and individuals, the banks themselves also need financing and there must also be an interest rate for these loans, which are made between themselves, the so-called interbank loans. That rate is Euribor. Euribor.

- Euribor appeared on January 1, 1999, together with the Euro, and since then it has been used as a model in several countries. produtos financeiros como créditos pessoais ou depósitos bancários, sendo maioritariamente associada aos housing loans.

Its name, Euribor, is an abbreviation for Euro Interbank Offered Rate. It is a reference rate based on the average of the interest rates used by a number of specific European banks on the loans they make to each other over a given period. Put more simply, it is the interest rate paid by banks in the euro area for lending money.

We usually refer to Euribor as "one" rate, however it represents a set of rates, more precisely five rates with different terms: Euribor at one week, one month, three, six and 12 months. The value is set daily by the European Banking Federation.

Since Euribor is mostly associated with the granting of home loans, it is important that you know that, if you have a home loan with variable rate, you will feel certainly the impact of Euribor in the monthly payments you make. If the Euribor rises, the house payment increases.

The sum of Euribor (at 3, 6 or 12 months) and the spread (the bank's profit margin) gives rise to the interest rate charged to you by the bank.

The value of the spread usually remains stable throughout the contract if there is no renegotiation, unlike the Euribor value which is revised within the timeframe defined in the contract.

When the contract ends, after 3, 6 or 12 months, the Euribor value is redefined for the installment that will take effect in subsequent months. This value is determined from the simple arithmetic average of the rates that applied daily in the previous month.

In the case of a loan agreement with flat rateIn the case of a variable-rate loan, the monthly payment does not change throughout the contract period. However, if a circumstance arises in which Euribor is below zero, it will pay to take out a variable rate, as the monthly payment will be lower.

Therefore, take this into account when negotiating your credit, in order to avoiding risks and changes in your budget.