About APR

APR is short for Annual Percentage Rate.

As credit agreements, and in our case personal loans, differentiate in terms of fees, late penalties and interest-rate repayments  APR provides both lenders and borrowers with a single number they can easily compare to rates charged by other competitors.

For borrowers, APR is how much the loan will cost you once you have completed paying back the loan as a percentage. Hence if the loan amount is £1,000 and the APR is 9% – then the amount to repay the lender will be £1,090. APR may also include any charges and fees that are applied to the loan – in essence, the total cost of borrowing money from a lender.

Why should borrowers consider a loan’s APR?

APR confirms how much it will cost borrowers to borrow money in the form of a personal loan for a year. The idea behind this is to allow borrowers to compare interest and fees between various credit lenders.

Within the UK, APR is a legal requirement that must be presented on all short term personal loans so that consumers understand how much it will cost them to repay the credit before they apply. Borrowers should note the APR so that they would be fully aware of how much the loan will cost and what will be monthly repayments, so they can budget this within their existing monthly expenses and thus not sink into additional debt problems.

How do borrower’s calculate APR?

APR is the cost of borrowing, and the amount (in a percentage) is added on top of the loan amount borrowed. Uploan displays all our APR rates for our personal loans to enable our customers to fully understand how much it will cost them to repay.

Uploan’s current APR is 289.59% APR. The Representative example is following:

Borrow £1,000 for 12 months. Total repayment:£1937.24 in 12 monthly payments of £161.44. Interest p.a: 146.10% (fixed). Representative 289.59%APR

What is representative APR?

If a loan is advertised as being 17% representative APR, then 51% of applicants who are accepted must receive the advertised 17% rate. For the other 49%, the lender is entitled to offer a different rate. Lenders tend to determine this APR rate based on an applicant’s circumstances.

Uploan always displays the offered loan APR when our customers apply for one of our loans. Our advice is to always check whether this offered APR (and not the advertised APR) is suitable for your monthly budget so that you do not get yourself into debt. Our loan calculator will display precisely what you have been offered and how much this will cost you in total and each month.

Is APR important?

In the interest of aiding applicants to compare the pros and cons of various loan types, it’s useful to have the list of APRs available so that applicants can make a comparable decision. Remember though, many lenders have hidden fees and/or inflexible payment terms, so whilst the APR may not be the lowest, it could offer more suitable repayment terms.

Another example is where a customer with a not so great credit score will likely apply to his/her bank first with a low advertised APR. However, due to their individual circumstances, they may be refused and will have to consider lenders who offer innovative ways to obtain a loan, as Uploan does with our short term credit options.

Thus, it shouldn’t necessarily be the only thing applicants consider to help them decide on which personal loan to choose.


Are you interested in a loan?

Use the sliders desired loan amount and term. The calculator will then show your loan in detail.

How much would you like?
Over how many months?

Monthly repayment:

Total repayable:

Representative example: Borrow £1000 for 12 months. Total repayment: £1953,07 in 12 monthly payments of £162,76. Interest p.a: 146.10% (fixed). Representative 296,91%APR.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk
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