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Here are ten things to check before you take out a loan. APR stands for A nnual P ercentage R ate. The annual percentage rate on a loan is the amount the lender would charge if you borrowed the money for a year, as a percentage of the original loan.
For instance at 40 APR, to borrow for a year you'd be charged 40 of the original loan, on top of paying it back. So if you borrowed ВЈ100 at 40 APR for a year, you'd have to pay back the loan plus ВЈ40. The APR is sometimes referred to as the 'interest rate'. However it also includes my payday advance/dailyfinance group other charges and administration fees, except where they are avoidable, such as late repayment fees.
Why an annual rate.