Interest rates on TyEL and investment loans

Ilmarinen loan rates are tied to the TyEL reference rate or the TyEL loan rate which are based on Euribor or the yields from benchmark government bonds. You have a choice between a fixed rate loan and a floating rate loan.

Fixed rate loans

A fixed rate loan is a safe and uncomplicated option for companies. Interest costs are known exactly because the loan rate remains the same throughout the loan period. Market fluctuations do not affect the loan costs so there is no need to worry about rising interest rates.

Floating-rate loans

Companies may choose based on their views on interest rates, an interest period which is shorter than the loan period. In this case, the reference rate remains fixed throughout the interest period. Clients can choose the coupon period themselves. The loan rate is calculated in accordance with the quotation on the day of the withdrawal.

More information on client loans from Ilmarinen’s Corporate Lending