## APR DETAILS

APR or annual percentage rate is the annual income generated on a sum charged to borrowers or paid to investors. It is calculated in percentage and it represents the true annual cost of money for a loan or investment throughout the loan's term. This includes any fees or additional expenses incurred during the transaction but excludes compounding. All banks and financial organisations have different Annual Percentage Rates (APRs). The rate varies depending on the interest rate and other fees charged by each bank. The APR of a loan is usually determined by the applicant's financial profile, which includes his or her credit and debit history, credit repayment record, credit score, and information on previous transactions.

For Example : - Loan of ₹1,00,000 with an APR of 16% (on reducing interest rate basis), repayment tenure of 12 months, processing fee of 3%. The processing fee will be ₹3,000 + ₹540 GST with EMI will be ₹9,394. Hence, The total loan amount: Rs 1,03,540. Payable interest over 12 months will be ₹9,191. Therefore loan repayment amount is Rs 103540 + Rs 9191 = Rs 1,12,731. Please Note: These numbers are for representation only and the final interest rate or processing fee may vary from one borrower to another depending on his/her credit assessment and banks T&Cs

What is the meaning of Annual Percentage Rate (APR)

Before taking a loan, it is important to know everything about the loan, then it is good to know how to calculate the loan and annual percentage rate, the calculation of the loan amount considers relevant fees and charges that are completely relevant to a loan along with the nominal interest rate.

The calculation takes consistent fees and charges that are completely relevant to a loan amount along with the simple interest rate, also it will not take any additional amount into account when calculating the actual cost of the loan amount.

How to use APR calculator
• Enter your loan amount in rupees.
• Enter the rate of the interest loan amount
• Enter the tenure in months
• Enter the amount of the additional fee
What is Annual Percentage Rate or APR calculated ?

Not one but there are many factors that come into play when taking out a loan, also these orders should be aligned to make sure that there is no serious impact on your long-term finances.

The APR is calculated by considering the following factors:

Not one but there are many factors that come into play when taking out a loan, also these orders should be aligned to make sure that there is no serious impact on your long-term finances.

• Loan Amount – How much does the applicant plan to borrow
• Fees and Charges – All applicable fees and charges are required to be paid to the financial lender to service the loan
• Rate of Interest – The interest rate applicable on the loan as imposed by the chosen lender
• Term – The number of months or years that have been designated as the repayment period.
The importance of APR

The importance of APR is an important tool that helps the prospective loan and check the actual cost of borrowing. In many cases, the financial lenders generally do not open the total cost and only advertise the rate of interest. APR is an extremely beneficial computation method when loan applicants are taking a loan with long-term repayment tenures, and it depends on the part of the overall cost.