What is the 'APR' of a loan?
APR stands for 'Annual Percentage Rate'.
This is the interest rate charged by the lender in return for
providing a loan. It takes into account the amount of interest paid
over the term of the loan. When a lender makes a loan offer, they are
required by law to quote the APR as well as the monthly
The law that covers credit agreements is the Consumer
Credit Act (1974).
The APR quoted helps borrowers compare loan offers
and choose the best deal available to them. The APR offered to
borrowers can vary greatly, and the lender reflects the applicant's
individual circumstances when making a loan offer.
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