Danish bank (Jyske Bank) launches world’s first negative interest rate home loan

Danish bank (Jyske Bank) launches world’s first negative interest rate home loan

  • Jyske Bank in Denmark has launched the world’s first negative interest rate home loan.

  • It means the bank will pay the borrower interest in place of charging interest. It will pay an interest of 0.5% p.a. In other words, it will charge an interest rate of -0.5% per annum. In reality money will not be paid, however, it will be adjusted in the next installment that the borrower has to pay.

  • Negative interest rates effectively mean that a bank pays a borrower to take money off their hands, so they pay back less than they have been loaned.

Points to remember:

  1. Which bank has launched the world’s first negative interest rate home loan

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