APR

APR stands for Annual Percentage Rate. It is a financial term used to indicate the cost of borrowing or the return on investment expressed as a yearly interest rate. This figure encompasses not only the nominal interest rate but also any additional fees or costs associated with the loan, allowing consumers to understand the true cost of borrowing. APR is commonly used in the context of loans, mortgages, credit cards, and other financial products. It provides a standardised way to compare the costs of different financial options. A lower APR generally indicates a more favourable borrowing cost, while a higher APR can signify a more expensive loan.