Personal loan involves a lot of intricacies such as calculation of personal loan interest rates, EMIs, tenure of the loan, etc. Therefore, you may often face doubts and dilemmas regarding various aspects of a loan. One such aspect that you may be wondering is how is APR different from interest rates? Well, let’s have a look
APR vs. Personal Loan Rate
The personal loan rate is the cost that will be levied by the lender on you as cost of the loan. An important point that you should consider is that the personal loan interest rate is just the interest rate that will be charged. It will not include other fee such as processing fee, documentation fee, foreclosure fee (if any), etc.
APR stands for Annual Percentage Rate, it provides better insights into the amount that you will be required to pay to the lender. It is the total price that you will owe to the lender including interest rate, and any other type of fee that is charged by the lender.
Another aspect that you many wonder about is why APR is higher than interest rate. Well, the reason for that is that the personal loan rate is charged on just the principal amount i.e. the amount you borrow while APR will provide you with the complete cost of borrowing money from a lender. Therefore, APR is generally higher than personal loan interest rate.
The Power of Convenience at your Fingertips
Everyone in the world is looking to live a more convenient life; thus, all segments of your life are altered constantly to become more convenient. However, when it comes to loans, you may find that it is still an inconvenient issue. Banks have not adapted according to the changing world and the process of loan approval is still riddled with bureaucracies. However, with PaySense, you can avail loans up to Rs. 2 lakhs in an instant. Additionally, you can do all this from your phone without having to do anything else. Moreover, the interest rate is dependent on a lot of factors that are in your control such as your credit rating & history, your annual income, etc. So, download the app now and enjoy the convenience of loan anywhere and at anytime.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs