Jargon buster
Taking the mystery out of loans
- APR
- Typical APR
- Defaqto
- Fixed rate
- Interest
- Payment protection
- Personal Loan Protector
- Quote
- Repayments
- Term
APR
APR – or annual percentage rate - helps you compare the real cost of borrowing. Lenders have to quote the APR when they advertise a loan or borrowing rate. The APR must also include any charges made by the lender.
Typical APR
'Typical APR' is the rate a lender will offer to at least two out of three borrowers. This isn’t necessarily the rate you’ll be offered.
Defaqto
Defaqto is an independent financial product research company. They gave our Personal Loan Protector a five star rating.
Interest
When you borrow money, the lender will make a charge – known as interest. For example, if you borrow £100 at an interest rate of 10% for one year, you would have to repay £110 at the end of the year.
Payment protection
Sudden illness, injury and involuntary unemployment could mean that you’re unable to meet your loan repayments. Payment protection is designed to help – our version is called Personal Loan Protector
Personal Loan Protector
This cover could meet your loan repayments if you’re unable to. The cover includes sudden illness, injury and involuntarily unemployment. More on Personal Loan Protector.
Quote
The estimated cost of a loan, usually showing monthly repayments and the total amount that will need to be repaid.
The actual cost of your loan could be different from the quote - we, work out the actual cost based on your specific circumstances. We’ll give you the actual cost during your application.
Repayments
The regular amount a borrower pays to a lender in order to repay the loan. Most loan repayments have to be made once a month.