The annual effective rate of return is the total amount of all payments made by the borrower under the Loan Agreement. This rate of return includes, in addition to the amount of monthly payments, all commissions charged by the credit institution, fees for issuing a card, insurance payments or fees for maintaining an account, issuing certificates, etc. The nominal rate of return, which is indicated in your Loan Agreement, is an expression of the loan value and is used in calculation of the monthly loan payment. Therefore, these two types of rates will be different.