For instance at 40 Get personal loan fast, 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 any other charges and administration fees, except where they are avoidable, such as late repayment fees. Why an annual rate. I'm only borrowing for a month or two.
When lenders advertise loans, they must show the APR by law. People borrow money for different lengths of time, so the annual percentage rate gives a standard way of comparing loan costs.
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