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

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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