What is Annual Percentage Rate (APR) & how it is different from rate of interest of the loan?

Modified on Mon, 27 Feb, 2023 at 5:00 PM

Interest rate of loan is defined as amount payable over and above principal amount given by the lender to borrower.


The Annual Percentage Rate (APR) is a method to compute annualised credit cost, which includes interest rate and processing fee.

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