What are the different loan representative APRs?
Representative APR and Representative Examples
Understanding Representative APRs is a crucial component of any loan agreement.
On this page we cover what these terms mean and what are the figures are for all our lenders.
What these terms actually mean?
The representative APR of a loan is the effective rate of interest that is paid by at least 51% of a company’s customers taking into account all charges and fees associated with that product.
The idea is that it gives you a fair indication of the actual total cost of a particular product.
This was introduced as a result of companies advertising low interest rates (to appear cheap) but then adding lots of other fees and charges making the overall cost actually higher.
So the representative APRs listed below are for that particular lender; for example, Amigo’s representative APR is 49.9%, therefore over 51% of Amigo’s customers paid an effective rate of 49.9% for their loan with Amigo.
A representative example is a calculation of all the costs associated with an example loan using the representative APR for that product, thus giving you a fair indication of the monthly payment and total amount payable for the loan amount and term used in the example.
Our Guarantor Lenders Representative APRs with Examples
Use the loan calculator below to estimate monthly loan repayments.