banking

APR (Annual Percentage Rate)

APR is the yearly cost of borrowing, including interest and most mandatory fees, expressed as a percentage.

Explanation

APR helps you compare loans on a like-for-like basis. A lower APR usually means a cheaper loan over time, assuming the same term and repayment schedule.

Example

Loan A has 8.9% APR and Loan B has 11.2% APR; Loan A is generally cheaper if other terms are equal.

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