Okuzeka
Finance & Banking vocabulary · Interest & Exchange Rates

APR

Meaning in finance & banking, with examples

abbreviationCore term

In finance & banking, APR means: Short for annual percentage rate: the yearly cost of a loan or credit card shown as a percentage, including interest and certain required fees.

In Turkish: yıllık maliyet oranı, yıllık efektif faiz oranı

How it is used

Used in consumer lending, adverts and disclosures, where lenders are often required to show it so that customers can compare offers. Said letter by letter: A-P-R. It differs from the plain interest rate, which leaves out fees.

Example sentences

  1. The advertised rate looks low, but the APR is higher once you add the arrangement fee.

  2. Credit card APRs are usually much higher than personal loan rates.

Common collocations

  • representative APR
  • compare the APR
  • APR on a credit card
  • high APR
  • interest rateThe price of borrowing money, shown as a percentage of the amount borrowed or saved for a period, usually one year.
  • compound interestInterest calculated on both the original amount and the interest already added, so the total grows faster over time than with simple interest.
  • credit cardA plastic or digital card that lets you buy now and pay the bank later. You can spend up to a limit and pay interest if you do not repay the full amount on time.
  • loanMoney that a bank or another lender gives to a person or company, which must be paid back over time, usually with interest.

More terms: Interest & Exchange Rates

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not financial advice.