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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