Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk

Why Dot Dot

Representative Example

£300 loan repayable over 6 months at £94.50 per month, Rate of interest 178% p.a. fixed; Representative 976.5% APR, Total Amount Payable is £567

What is APR?

The term APR stands for Annual Percentage Rate, and is a figure which displays how much your loan will cost over the course of a year. It takes into account interest and fees that are associated with the loan. All lenders must clearly display their APR when you’re making a credit application, or where they are telling you about their products.

APR is something you’ve probably seen mentioned a lot if you’re looking for a loan. Let’s take a quick look at what this means.

What is APR on a short-term loan?

APR on a short-term loan can sometimes help you compare loans from different lenders.

Lenders can charge different interest rates and fees, and have different loan terms. The idea is that the APR is a figure you can use as a way of comparing two different loan products. As all the costs are included in the APR figure, it should be a quick way of seeing which borrowing option would cost more.

It’s important to remember that APR looks at the loan over a year. Not all short term loans will be taken out over this term, so it’s important to look at additional factors like repayment amounts and frequency, fees and interest rates when making your decision.

Lenders will often display a representative APR which is the APR that the majority of customers will get for the loan but is not necessarily the one you will receive.

It helps to understand exactly how the APR number is worked out.

How is APR calculated?

APR is shown as a percentage of the loan amount; the figure includes the interest on the loan plus any other mandatory fees. It can sometimes be a little confusing, especially on a short-term loan. Because short term loans are not designed to be taken out over a full year, charges other than the interest rate can become included in the figure.

Here at Dot Dot however, we don’t charge any hidden fees such as those for missed or late payments, and our interest rates are transparent and fixed at the point you take out the loan.

As a responsible lender, Dot Dot will always make the APR clear to you when you apply for a loan with us. We will show you exactly how much your loan will cost if you repay at the agreed terms. This is to help you decide if short term lending is right for you.

Apply | Login