Provision-free interest

Good morning,

the following example:
I borrow 250,000€ from the bank.
On 01.04.2017, my interest grace period ends.
On 01.04.2017, I take out 230,000€ -> 20,000€ remain in the bank. I will only take these out on 01.07.2017.
Now the question: Do I pay interest on the 20,000€ or on the 230,000€? And from when do I have to start repaying?
From the moment I receive the entire amount from the bank (that's what I would have assumed) or from 01.04.2017, when I take out the 230,000€?

Thank you

For the remaining part of the loan amount, you pay the interest.

Quite simply, you pay loan interest on the 230K€ and you pay commitment interest on the 20K€. The bank makes the loan available to you, but you have not (fully) drawn it down yet. That is why there is commitment interest.

Repayment must be regulated separately somewhere in the loan agreement. Some contracts specify a fixed date, some contracts after full disbursement, and others agree on a repayment-free period. I believe we even paid more than our actual installment at the beginning, because our repayment start was set to a fixed date. Due to delays at the start of construction and during the construction phase, the repayment start was actually earlier than when we had fully drawn down the loan. Since the commitment interest was slightly higher than the loan interest, this effect occurred.

I'll chime in. Same here with us.

The commitment interest is only calculated for the remaining 20,000.

I can only confirm.... As Musketier has already explained, check the contract and/or contact the bank. The rule is interest on the disbursed part of the loan + commitment interest on the undisbursed part. The annuity (interest + repayment = installment) then applies to the full disbursement and also in the month following the full disbursement.

It also gets confusing when you have multiple components and accounts. In that case, it may be that the installment has to be paid because it is fully disbursed.