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Loan

APR

Also known as: Annual Percentage Rate, All-in Cost Rate

Annual Percentage Rate including all loan costs like interest, processing fees, and other charges.

Detailed Explanation

APR (Annual Percentage Rate) represents the true yearly cost of borrowing including not just the interest rate but also processing fees, documentation charges, insurance costs, and other mandatory fees. APR provides a standardized way to compare different loan offers as it includes all costs, unlike interest rates which only reflect the borrowing cost.