- APR
- annual percentage rate (APR)The total financing costs associated with a loan on an annualized basis, divided by the amount borrowed. As defined by Federal Reserve Regulation Z and the Truth-in-Lending Act, this is a precisely calculated measure of the cost of a loan. The Truth-in-Lending Act and Regulation Z have specific requirements covering both how to calculate and how to disclose APRs. American Banker Glossary————The periodic rate times the number of periods in a year. For example, a 5% quarterly return has an APR of 20%. Bloomberg Financial Dictionary————Annual Percentage Rate (APR)The APR is the interest rate figure that indicates the total cost of borrowing, including any charges. When you borrow money, every lender is required by law to quote this rate. The APR is the best way of comparing like with like. It was introduced as part of the Consumer Credit Act of 1974 and is mostly used for credit cards, personal loans and mortgages.
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APR APR noun [countable usually singular]FINANCE annual percentage rate; the rate of interest that you must pay when you borrow money. In many countries, the APR must be shown in advertisements offering to lend money to people, to give the true cost of borrowing:• The bank is offering a 6.4% APR on loans of over £7,500.
• The APR takes into account not just the interest on the loan, but also any other charges you may have to pay, for example, any arrangement fee.
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APR UK US /ˌeɪpiˈɑːr/ US /-ˈɑːr/ noun [S] FINANCE, BANKING► ABBREVIATION for Annual Percentage Rate: the interest rate on a loan, credit card, etc., calculated over a period of twelve months: »The promotion promises no annual fee for the first year, and an interest rate of just 5.9% APR on balance transfers.
Financial and business terms. 2012.
