Go back

Prodigy Finance: APR explained

Prodigy Finance - February 10, 2016


Taking out a loan can seem like a complicated process, especially if financial terms aren’t part of your every day lingo. However, because taking out a loan is a serious and long-term commitment, it is important that you understand the various terms that come with it. Traditionally, many people think that the interest rate is the deciding factor on which to take out a loan, but actually the most important figure is the APR (Annual Percentage Rate).

APR is the key tool for comparing different loan offers, and understanding the total cost of borrowing over the duration of a loan. Here, we compare two examples, explaining why a rate that may look better on the surface can sometimes cost you more in the long run once the base rate, and all fees are factored in.

Take a look here. 

APR Explained Screen

Related Articles

Community lending for insead students

What about the other 17 percent?

Katie Schenk - December 14, 2017

International grad students have traditionally faced difficulties in obtaining study loans. The... Continue reading

Student story video for prodigy story

VIDEO: Community lending for London Business School students

Prodigy Finance - December 08, 2017

Originally from Zimbabwe, Farai Mwamuka, was working in South Africa before he decided to pursue... Continue reading

Community lending for insead students

VIDEO: Community lending for INSEAD students

Prodigy Finance - November 12, 2017

With so many top business schools, it’s easy to understand how one can be the exact right fit for... Continue reading

74 engineering schools

Prodigy Finance launches its 74th Engineering school in the USA with the addition of North Carolina State University

Ricardo Fernandez - September 05, 2017

Until recently, international students pursuing postgraduate degrees in the United States faced... Continue reading

Follow us