What does Annual Percentage Rate mean? Read on to discover the definition & meaning of the term Annual Percentage Rate - to help you better understand the language used in insurance policies.
Annual Percentage Rate
Annual percentage rate (APR) is a term usually associated with mortgages, auto loans and credit cards that denotes the annual rate of funds that banks or financial institutions usually charge borrowers. APR is an annual rate of funds charged as a percentage that represents the annual cost of the funds borrowed over the life of the loan.
We hope the you have a better understanding of the meaning of Annual Percentage Rate.