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  • FIRST POST
    • Ascheapaschips
    • By Ascheapaschips 11th Oct 16, 9:30 PM
    • 6Posts
    • 1Thanks
    Ascheapaschips
    APR rate doesn't add up
    • #1
    • 11th Oct 16, 9:30 PM
    APR rate doesn't add up 11th Oct 16 at 9:30 PM
    Hi,

    My wife and I recently applied for a loan and were approved at APR 3.2%.

    We got the paperwork through but the figures don't add up to us! We were expecting interest to be 400 odd (based on 3.2 markup) but the interest being applied is quoted as 1,100 on the paperwork and is above 8.1% based on my calculations.

    Am I missing some technicality applied to loans? There are no "hidden extras" from what I can see. Nothing like payment protection or the likes.

    Any advice would be appreciated.

    Many thanks.
Page 1
    • zx81
    • By zx81 11th Oct 16, 9:31 PM
    • 10,523 Posts
    • 10,386 Thanks
    zx81
    • #2
    • 11th Oct 16, 9:31 PM
    • #2
    • 11th Oct 16, 9:31 PM
    What are the figures on the agreement? Amount, term, rare etc.
    • Ascheapaschips
    • By Ascheapaschips 11th Oct 16, 10:19 PM
    • 6 Posts
    • 1 Thanks
    Ascheapaschips
    • #3
    • 11th Oct 16, 10:19 PM
    • #3
    • 11th Oct 16, 10:19 PM
    Thanks zx81 but I think I've got it now. It's a 60 month loan and it's how it spreads out year on year.
    • jonesMUFCforever
    • By jonesMUFCforever 11th Oct 16, 10:21 PM
    • 23,420 Posts
    • 10,712 Thanks
    jonesMUFCforever
    • #4
    • 11th Oct 16, 10:21 PM
    • #4
    • 11th Oct 16, 10:21 PM
    I wonder id the OP worked out the interest for one year not the term of the loan.
    What goes around - comes around
    give lots and you will always receive lots
    • Caz3121
    • By Caz3121 11th Oct 16, 10:49 PM
    • 10,175 Posts
    • 6,647 Thanks
    Caz3121
    • #5
    • 11th Oct 16, 10:49 PM
    • #5
    • 11th Oct 16, 10:49 PM
    Thanks zx81 but I think I've got it now. It's a 60 month loan and it's how it spreads out year on year.
    Originally posted by Ascheapaschips
    that will be it
    a 12.5k loan over 12 months @ 3.2% would cost 400 in interest
    a 12.5k loan over 60 months @ 3.2% would cost 1,043.20 in interest
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