Annual Percentage Rate (APR): APR is the effective annual rate charged to the borrower. APR is based on an all-inclusive cost including origination fees, insurance, etc., but excluding contingent charges such as penal charges, late payment charges, post disbursement charges, etc.
Interest Rate is the percentage of interest charged on a loan by the lender (such as HDFC Credila for education loans), whereas APR includes all other incidental costs associated with the loan, in addition to the interest rate. The APR is depicted as an percentage rate per year.
APR is computed on net loan amount (sanction loan amount net of origination fees, insurance, etc.) using the XIRR approach on the indicative loan amortization shared with the customer based on reducing balance method. When the loan is linked to a Benchmark Rate, the APR will change in line with the change in the Benchmark Rate.
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The APR calculators provided are for illustrative purposes and general assistance for financial planning only, and may be used at the sole discretion of the user. Output of the calculator depends on many factors, including the assumptions provided. HDFC Credila does not guarantee any accuracy, or applicability to your circumstances. User should exercise due care and caution (including, if necessary, obtaining the advice of tax/legal/accounting/financial/other related professionals) prior to taking any decision, acting or omitting to act, on the basis of the information contained/data generated herein. Neither HDFC Credila nor any of its agents or licensors or group companies shall be liable to the user/any third party, for any direct, indirect, incidental, special or consequential loss or damages whatsoever, whether in contract, tort (including negligence or otherwise), misrepresentation or otherwise, arising from the use of these tools/information contained /data generated herein.
