Finance Glossary
Representative Example
A standardised illustration of the cost of a loan that UK lenders are legally required to display in their advertising and on their websites. A representative example must include the borrowing amount, loan term, monthly repayment, annual interest rate, APR, and total amount repayable. The example must be representative of what at least 51% of customers accepted for that product will actually receive.
Example
Representative example: Borrowing £1,000 over 12 months, monthly repayment £93.22, total repayable £1,118.64. Representative APR 39.9%.
Related guides
Related terms
Representative APR
The APR that at least 51% of customers accepted for a loan p…
APR
Annual Percentage Rate — the true annual cost of borrowing, …
Total Amount Repayable
The complete sum you will pay back over the life of a loan, …
Interest Rate
The percentage of the loan principal charged by a lender for…
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