what is annual percentage rate

Annual percentage rate APR, Does not take into account compound interest APR takes into account processing fees, file charges, other costs instead of just considering the interest rate It includes the interest rate and other costs of availing a personal loan. It tells you the actual cost of borrowing a loan per year.

Annual percentage rate

APR full form

The full form of APR is Annual percentage rate. In this, the interest rate is added on an annual basis, not on a monthly basis.

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How many types of Annual percentage rate

There are two types of APR, the first is Representative APR and the second is Personal APR.

Representative APR

Annual percentage rate is when a loan is advertised with a representative APR, it means that at least 51% of customers get a rate that is equal to or less than the representative APR and it can be more or less depending on the loan amount you have.

However, there is no guarantee that 51% of the customers will get the same or the same rate as only half of the people are eligible to get it.

Personal APR

Personal Annual Percentage Rate is given to each individual on the basis of Personal Annual Percentage Rate. It also depends on his risk capacity, loan amount, credit history and income, which also affect whether the loan should be given or not.

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Annual percentage rate calculator

To calculate annual percentage rate, you will have to use the formula or you can directly ask Google Baba.

Annual percentage rate formula

This formula has to be used to calculate the annual percentage rate.

(Interest charges + fees) ÷ Loan amount / Number of days in loan term × 365 ×100

Annual percentage rate calculator

For APR, you can directly contact Google Baba or visit the official website of Axis Bank APR Calculate

What is good APR

The Annual Percentage rate you get depends on your credit score. If we look at an average Good APR, then 22% is good. People with bad credit scores can have 32% APR. Here bad means that those with low credit scores have fewer options.

Some people with good credit score can get APR as low as 14%. If the annual percentage rate is 5% then it is very beneficial for home loan, mortgage and education loan. This will be the best deal for you.

annual percentage rate credit card

Annual percentage rate (APR) is the cost of borrowing money on a credit card. It tells you the interest rate you will pay annually on your balance along with the credit card fees. Annual percentage rate credit card varies for each card. Suppose you have a first card which is 11.99% and the second one may be 15.99%.