Provision interest free for 12 months?

Hello everyone,

I have a question. We got a loan from the Sparkasse with 12 months of free provision (until the end of Feb. 2016). Now we made the first partial drawdown on 28.03.2015. Today I saw the following entry on my checking account:

Loan installment Loan disbursement 0.69 For 28.03.2015 - 30.03.2015 Interest rate 1.660% Balance -5,000.00- Interest 0.69 That means I had to pay €0.69 on the €5,000 for the 3 days. Is that normal? Sorry for the stupid question! I thought no interest payments would come until next year.

Layman's opinion: Provision means that you don't pay anything if you do not yet use the loan. As soon as you need money, you also have to pay interest for it.

Regards

You do not pay commitment interest on the entire amount, but from now on you pay 1.66% for the already withdrawn money every day/month until the full disbursement.

These are not standby interest charges, but interest, and these are contractually agreed.

Great, thank you!
That's it :)

If you haven't factored that in, it's better to set aside another €1000 as a buffer. In the 2-3 months before completion, you almost have to pay the entire interest burden (in addition to the rent).