What factors are considered when calculating the APR for digital currency loans?

1 answers

• Dec 17, 2021 · 3 years ago
  When calculating the APR for digital currency loans, several factors come into play. These factors include the interest rate, loan duration, loan amount, and any additional fees. The interest rate is a significant factor as it determines the cost of borrowing. The loan duration also affects the APR, with longer durations typically resulting in higher APRs. The loan amount is another consideration, as larger loans may have lower APRs due to economies of scale. Additionally, any extra fees, such as origination fees or late payment fees, can impact the APR. It's important to carefully review and compare these factors to understand the true cost of borrowing in digital currency loans.
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