APR is Annual Percentage Rate, was introduced under the Consumer Credit Act 1974, to ensure comparability of loans. It is the interest payable on amount borrowed as an annual rate charge. It is required to be published for all regulated loans. It is a money charge expressed as an annual rate. A nominal APR is levied on Payday Loans when the loan is approved. The lender at the time of approving loan calculates the APR and tells you so that you are aware what is the loan repayment amount.When you apply online for Payday Loan, you fill up an application form, you give all your personal, professional deatils in which you also mention the amount that you need. Then lender after verifying all your informations calculates an interest rate that you will have to pay with the actual loan amount on the next month’s payday. This interest fee calculated is APR. Before you take accept loan you should check the APR that is calculated.
For example, if you borrow $200, on your payday you will payback $230within 15 – 30days as finalized. So, the APR is 390%.