APR — Annual Percentage Rate
Short definition
Indicator expressing total credit cost as annual percentage, including interest, file fees, insurance and all mandatory charges.
Detailed definition
APR (Annual Percentage Rate) is reference indicator to objectively compare multiple credit offers in Morocco. Integrates: nominal interest rate, file fees, death-disability insurance premium, appraisal fees (mortgage), and any mandatory commission. Mandatory on all credit advertising and contracts since law 31-08 (2011). Lower APR means more advantageous credit.
Concrete example
500,000 MAD mortgage at 4% nominal rate may have 4.8% APR after integrating fees (+0.3%) and insurance (+0.5%). This APR enables true comparison between banks.
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