If you are looking for payday loans or other kinds of unsecured short term loans, it is likely you have come across the term APR. It is the annual percentage rate or simply the rate of interest. The APR is an annual rate and hence it is applicable per annum. This means the APR is not relevant if you are seeking payday installment loans with a repayment term of six months. A monthly rate of interest will be applicable in such cases. The monthly rate of interest is not always proportional to the rate applicable for twelve months. Hence, you should note this distinction when you apply for and consider payday installment loans.
When you apply for a loan, either directly on the website of a lender or through a facilitator, you will get representative APRs. These are basically annual percentage rates meant to be indicative of what you may be charged. Representative APRs are not the actual rates and terms for payday installment loans. The actual rate of interest applicable for your loan will be in the quote. You will get the other terms too. There could be a processing fee charged by the lender. Some facilitators also have such fees. There may be other charges as well. You must read the exact terms of a lender mentioned in the email or the accompanying agreement. All lenders have their own terms and they can vary. There is some uniformity and a few terms can be identical but do not presume anything.
Representative APRs can turn out to be the exact rate of interest a lender charges for the loan you want. This is simply incidental. You should also know that the rate of interest quoted in the email or the terms of the agreement may not be anywhere close to the representative APR. The actual rate could be higher. It could also be much lower if you have a great credit score and other factors of your profile make you a desirable borrower for the lender. All websites quote representative APRs. No website quotes the exact rate you will pay. The only way you will know this rate is when you have a specific quote from a lender for the loan amount you want. This is how all payday installment loans work. Representative APRs also do not reflect any other charges that you may have to pay. These are also available only when you get the quotes.