Loans FAQ:

• Who can apply for loans?
• What kind of loan can I apply for?
• What can I use my loan for?
• What are Tenant Loans?
• What is credit scoring?
• What are Credit Reference Agencies?
• Can I see my credit record?
• How can I contact the Credit Reference Agencies?
• The Consumer Credit Act (1974)
• What is APR?
• What interest rate will I get?
• What if I have been quoted a high APR?
• Should I take out payment protection?
• What is a secured loan?
• What is an unsecured loan?
• Do I really need a loan?
• How can I spread the cost of Christmas?
• Does ADM offer payday loans?

What is the 'APR' of a loan?

  APR stands for 'Annual Percentage Rate'.

  This is the interest rate charged by the lender in return for providing a loan. It takes into account the amount of interest paid over the term of the loan. When a lender makes a loan offer, they are required by law to quote the APR as well as the monthly repayments.

  The law that covers credit agreements is the Consumer Credit Act (1974).

  The APR quoted helps borrowers compare loan offers and choose the best deal available to them. The APR offered to borrowers can vary greatly, and the lender reflects the applicant's individual circumstances when making a loan offer.

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