Annual Percentage Rate
The term “annual percentage rate” is commonly used in reference to financial products such as mortgages, credit cards and personal loans.
Broadly speaking, APR is the sum of the interest rate plus extra fees, also known as finance charges, calculated on a yearly basis and expressed as a percentage. If there are no fees, the APR equals the interest rate.
For personal loans, the APR is a function of the amount borrowed, the duration of the loan and the fees charged.