Loans - What is an annual percentage rate (APR)?

 
 
 

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What is an annual percentage rate (APR)?

An APR is the percentage rate your loan will cost you each year, including the interest and fees. It is the standard calculation used by all lenders allowing you to compare the various rates on offer. This is essentially a charge you will pay on top of your loan. It can either be fixed to a specific amount or vary from year to year.

All lenders will tell you the APR before you sign any deal and, generally, the lower the rate the better it is for you.

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