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As a customer, many of us have gone to the bank to avail a loan for education, home, business, etc. purpose. Each time we as customers have availed a loan we have had to pay interest on the sum taken as loan. Did you ever think that a bank might pay you to avail the loan?

Yes, Jyske Bank A/S in Denmark is paying home loan takers to avail loan from the bank. The third-largest lender of the country declared that it was taking -0.5% interest rate before fees. This is a new paradigm trend in the lending industry. Yes, the lending rates in the last couple of years was witnessing a downward trend with the interest rates going as low as zero to negative.

As time has been passing, the central banks around the world have been working towards decreasing the interest rates. The low-interest rates pushed by the central banks is going to bring a shift in the traditional economics of the industry. This change has been most significant in Europe; the continent witnessed the lowest home-loan rate this year in June, the lowest since the year 2000.

The Nordea Bank Abp is also offering 30-year mortgage at the annual interest rate of just 0.5%. While some countries in the European continent have seen the borrowing rates hitting rock bottom, there are some regions which have resisted this trend. However, the increase in demand from the home-loan takers has led to fierce competition in the lending industry.

United Kingdom home-loan interest rates

The lending rates in the UK remains almost unchanged this year. When the citizens wish to avail a two-year fixed loan, the interest rates have fallen 8 points from January 2019 to July 2019 in comparison to the 38 basis-point drops in the two-year swaps. One of the reasons for this is cited with the fact that the Bank of England’s regulatory authority has been discouraging lenders from trying to gain the market shared by easing standards. The regulatory body is worried about its financial strength.


The lending rates in the German region went with the European flow and reached a historic ten-year low. The interest rate went under 1%; some lenders are offering the loan at the interest rate as low as 0.5%.
It is expected the rates might further decline and hit 0%; this may boom the residential market in the country. According to statistics, only 46% of Germans currently own a home in comparison to the EU average of 69%.


As per the data collected by Bank of France, the interest rate here has reached 1.39% on average in June. The banking sector in France is very competitive, and many of them are luring the borrowers with low-interest rates as well as cheap offers to avail loan.