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The Annual Percentage Rate (APR) is the cost of the credit extended to the consumer by the bank. This rate is usually higher than the profit rate (Flat Rate) as it takes into consideration all costs featured in extending that credit namely administrative fees, commission, and insurance cost. Therefore, APR provides a clearer picture of the cost of credit than profit rate.
Administrative fees are either 1% of the amount of finance or SR 5,000, whichever is less.
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