Back to Guides
Does APR mean the same thing in every country?
Annualized lending disclosures are defined under local rules and do not always use identical labels or calculations.
A nominal rate, APR and an Australian comparison rate should not be treated as interchangeable merely because each is a percentage.
Identify the jurisdiction and product before interpreting the figure. Use its official explanation to check included fees and assumptions, then examine the actual schedule and conditions of the offer.
Prepare a question about a loan charge
Compare legal details and independently verified contact information before sharing application documents.
Definitions
- Nominal interest rate
- Stated rate used to calculate interest under the agreement; it does not describe every other charge.
- Annual comparison measure
- Annualized disclosure used to compare borrowing costs; its calculation and included charges depend on the jurisdiction and product.