Whats The Apr On This Loan?

[sandyRoe]

£10 borrowed from a money lender to be repaid over 10 weeks with payments of £1.30.

[maggiebee]

Far too high Sandy - I'll lend you a tenner if you like without interest.

[Jackdaw33]

Calculating APR is extremely complex. Google may offer some help but I wouldn't know where to start

[maggiebee]

I tried and got 1300% but then again maths is not my strong point.

[scorpiojo]

156%?

Calculate APR on Payday Loans

Divide the finance charge by the loan amount.Multiply the result by 365.Divide the result by the term of the loan.Multiply the result by 100.

[Gizmonster]

156.4% according to:

https://www.thebalance.com/annual-percentage-rate-apr-315533

Scroll half way down to "Calculate APR on Payday Loans".

[sandyRoe]

That's the type of loan my mother used to take out. It got worse, when it was half paid you could 'renew' it. They'd take what you still owed from the first loan, £5.75, so you'd be back to square one with a £13 debt.
Maggiebee, TY, for your very generous offer.

[maggiebee]

That makes sense spathiphyllum. As I said maths is not my strong point so there's a big difference between APR and a loan for 10 weeks.

[fiction-factory]

APRs are useful in some cases but can be a little misleading in a case like this. If you just think of this as an interest fee loan with an admin fee/hadling charge of £3 it's not too bad, bearing in mind some cash machines charge £1.50 to withdraw a tenner, and overdraft fees would cost a lot more. If you are in a cashflow situation it may be a small price to pay.
However if it was £100 with a £30 admin charge that's starting to sound a lot