Paul Lavin

The point about people’s understanding of APR is very valid, often there is a lack of willingness (or used to be) to accept that higher rates for credit are a matter of fact in small value lending “your proposed rates are extortionate I can get 6.9%” attitudes have possibly set back some social credit lenders who just might have achieved sustainability instead of having to use grants to meet the gap and fund revenue costs. When you speak to the customers about lending APR is often a meaningless measure for them. To me total cost of credit and the actual regular repayment together are a much more meaningful measure.

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