What does APR mean?
APR stands for the Annual Percentage Rate of charge. You can use it to compare different credit and loan offers. The APR includes important factors such as:
- the interest rate you must pay;
- how you repay the loan; the length of the loan agreement (or term); frequency and timing of instalment payments; and amount of each payment;
- certain fees associated with the loan; and
- premiums for payment protection insurance that the lender chooses to make compulsory.
All lenders have to tell you what their APR is before you sign an agreement. It will vary from lender to lender.
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