It expresses the total cost that the client is obliged to pay to the creditor for the credit granted over a period of one year (the cost includes both interest, fees and other related costs that the client has to pay to the bank in addition to the repayment of the principal itself, which is not included in the APR). It is encountered in all types of credit, especially in consumer credit, where the obligation to state the APR is established by law, as well as the rules for its calculation. For the client, this is one of the most important data he should know for any loan. The APR gives the best picture of what the cost of the loan will be for the client in one year and the client can best compare the offers of different providers. Other terms used: annual percentage rate of charge.