APR (Annual Percentage Rate) (वार्षिक प्रतिशत दर (एपीआर))
APR is the total yearly cost of a loan, combining interest and all lender fees into one annualised percentage. RBI's Digital Lending Directions, 2025 require the lender to disclose the APR upfront in the Key Fact Statement so you can compare offers fairly.
Worked example
You borrow ₹20,000 for 90 days with ₹1,500 interest and a ₹500 processing fee plus ₹90 GST. Total cost of credit = ₹2,090, so APR ≈ (2,090 ÷ 20,000) × (365 ÷ 90) × 100 ≈ 42.4% — even though the headline "interest rate" alone looks much lower.