Read the result correctly
APR compares the net amount received with the timing and amount of mandatory future payments.
How does APR differ from the nominal rate?
The nominal rate applies to principal; APR also reflects mandatory borrowing costs.
Why is APR useful?
It makes loans with different fee structures easier to compare.
Official methodology
The principles behind the effective annual rate are defined by Azerbaijani legislation. Read the official rule on e-qanun.az ↗
Frequently asked questions
What is APR?
An annual measure of the effective cost of borrowing.
Which costs should be included?
Known mandatory costs required to obtain the loan.
Why can APR be higher?
Upfront fees reduce net proceeds while payments are based on the full principal.
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Read the calculation methodology and finance guide for formulas and assumptions. Calculation methodology · Finance guide