Applying for online loans can be so unnecessarily tricky. It’s one of the reasons why Fincheck has entered the financial space online! There are so many things you need to compare, so many fees you must take into account. Thank goodness for APR to help you get going!
The annual percentage rate (or APR) is the amount of interest you will pay on the total of the loan amount per year (divided evenly over the full term of the loan).
Okay, show me some figures
So when the APR of a loan is 60% - the monthly interest will be 5% (60% spread over 12 months is 5% per month).
The wonderful thing about APR is that it includes other costs like initiation costs, late payment penalties and the all important annual interest rate as well.
Loan comparisons are simplified by the fact that when starting out you can compare the APR’s of, for example personal loans, and get a great overall idea of what you’re looking at.
You don’t have to be a human loan APR calculator - the options on our Loan Comparison Page have them included for you to compare.
So a quick recap - an APR is the interest rate and all the extra costs associated with the loan compressed into one metric with which to measure and analyze the loans that are at your disposal.
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