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Loans
Annual Percentage Rate (APR)
The total yearly cost of borrowing expressed as a percentage. It's basically the interest rate plus fees and charges bundled together — that's the real price of credit. In SA, lenders must show you the APR before you sign, so you know exactly what you're paying for.
Usage Examples
"Thembi applied for a personal loan from Capitec — the APR was 24.5%, which included a 21% interest rate plus monthly service fees. That's what she'd actually pay per year."
"When Sipho compared offers from Nedbank and FNB, the FNB loan had a lower interest rate but a higher APR because of initiation and service fees. The APR told the real story."
"Zanele looked at a short-term loan from Wonga at 5% monthly — that works out to an APR of 60%. Eish. Now she understood why payday loans are hectic."