Finance Glossary

APR

Annual Percentage Rate — the true annual cost of borrowing, including interest and fees, expressed as a percentage. In the UK, lenders must display the APR prominently so consumers can compare products on a like-for-like basis. It is the single most useful figure for comparing the cost of different loan offers.

Example

If you borrow £1,000 at 49.9% APR over 12 months, your total repayable is approximately £1,249.

Related guides

Apr Explained

Related terms

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,
Annual Percentage Rate
The full name for APR. The Annual Percentage Rate is the sta
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