What is APR (TAEG), and how does it affect my decision?

APR (TAEG) represents the annual cost of the loan, including not only the interest rate but also other charges required to obtain the offer, such as certain fees and insurance. It is one of the most useful indicators for comparing proposals with the same term and structure.

For example, two offers with similar monthly repayments may show different APRs because of insurance, fees or linked conditions. In that case, the offer with the lower APR will generally represent a lower total cost over time.

In practice, an offer with a lower spread may still not be the best one if the APR is higher because of the associated costs. This means that proposals which look similar on the surface may have very different financial impacts.

That is why APR should be read together with MTIC, the monthly repayment and the contracting conditions for a full comparison.

Talk to a specialist to compare offers that seem similar but carry different effective costs.