Annual Percentage Rate (APR) is a financial term that represents the total cost of borrowing, expressed as a percentage. It includes the interest rate as well as any additional fees or costs associated with a loan or credit card.
APR provides a more comprehensive view of the true cost of borrowing compared to just the interest rate.
It allows consumers to make informed decisions when comparing financial products. Lenders are required to disclose the APR to borrowers, ensuring transparency in lending practices and helping individuals assess the affordability of loans and credit.