What is APR?
APR (Annual Percentage Rate) represents the true cost of borrowing over a year. It includes not just the interest rate, but also additional fees associated with the loan. Understanding APR helps you compare different loan offers more accurately and make informed financial decisions.
Key Features:
• Rate of Interest: Up to 32% APR
• Fees: Up to 10% of loan amount
• No preclosure charges - Pay as you use
Representative Example:
For a loan of ₹25,000 borrowed for 12 months:
• Annual Percentage Rate (APR): 30%
• Processing Fees: 5% (₹1,250)
• Interest: ₹7,500
• Total amount to repay at the end of tenure: ₹32,500
• NACH bounce charges: ₹500
• Delay Payment charges: 36% p.a.*
*This fee is ONLY applicable when borrowers repay bill overdue. For example, if you have ₹10,000 overdue of principal, then you'll need to pay an additional ₹300 for one month of delay in repayment of loan.
APR Comparison
| Loan Amount | Loan Term | APR | Total Amount To Repay |
|---|---|---|---|
| ₹25,000 | 1 year | 20% | ₹30,000 |
| ₹25,000 | 1 year | 30% | ₹32,500 |
| ₹25,000 | 1 year | 32% | ₹33,000 |
Frequently Asked Questions
Q: How is APR different from the interest rate?
A: While the interest rate only covers the cost of borrowing the principal amount, APR includes both the interest rate and additional fees, giving a more comprehensive view of the loan's cost.
Q: Can APR change during the loan term?
A: For fixed-rate loans, the APR remains constant. However, for variable-rate loans, the APR can change based on market conditions.
Q: How can I get a lower APR?
A: Improving your credit score, choosing a shorter loan term, and shopping around for the best offers can help you secure a lower APR.
Important Notes:
1. The annual interest rates and processing fees vary according to the risk profile of customers.
2. All rates and fees mentioned are subject to change. Please check the final loan agreement for the most up-to-date information.
3. 30daysoan is committed to responsible lending. We encourage all borrowers to carefully consider their financial situation before taking a loan.