The effective annual interest rate (RRPS in Ukrainian law) is the total cost of a consumer loan, expressed as a percentage per year of the total amount of credit granted.
In plain words
The RRPS shows the full cost of a loan, not just the nominal interest: the law counts as costs the interest, the lender’s fees connected with granting, servicing and repaying the loan, and other mandatory payments for additional services. It is calculated under National Bank acts. The RRPS is what you should compare between loans, because an advertisement saying “0.5% a day” without fees and mandatory services does not show the full price. The law also caps the maximum daily interest rate.
Sources
- Law of Ukraine “On Consumer Lending” No. 1734-VIII of 15 November 2016 — Art. 1 (item 8), Art. 8 (version of 30 July 2026). Checked 14.10.2026.
Example. An advertisement promises “0.5% a day”. That is about 180% a year in simple interest (0.5 × 365), and with fees and mandatory payments the RRPS will be higher still. Compare loans by the RRPS and by the total amount you will have to repay.