Finance Glossary

Annual Percentage Rate

The full name for APR. The Annual Percentage Rate is the standardised way of expressing the yearly cost of borrowing, inclusive of interest and compulsory fees, as required by the Consumer Credit Act 1974 and FCA regulations. It enables consumers to compare credit products from different lenders on an equal footing regardless of how charges are structured.

Related guides

Apr Explained

Related terms

APR
Annual Percentage Rate — the true annual cost of borrowing,
Representative APR
The APR that at least 51% of customers accepted for a loan p
Interest Rate
The percentage of the loan principal charged by a lender for
Total Amount Repayable
The complete sum you will pay back over the life of a loan,
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