What is the TIN

What is the TIN and APR

Applying for a loan online is a simple transaction to carry out, but before doing so it is important to know some of its terms. One of the words that raises many doubts are interests, especially what is the TIN and APR. These terms are found in different financial procedures, so it is important to know the function of both. Learn a little more in today's post.

What is the TIN

The acronym TIN refers to the Nominal Interest Rate. This means that it represents the percentage that the lender obtains and is added to the total amount granted. The percentage of the nominal interest is fixed, it is determined when the money is requested, so it does not change during the payment of the debt.

The TIN can be found in different financial procedures such as: mortgages, loans, deposit agreements, credits, among others. This interest only fixes the remuneration obtained by the lender. This does not add other expenses or commissions of the loan, unlike the APR that does include it.

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  • Through the TIN it is possible to calculate the annual interest.
  • The percentage is fixed and is defined from the beginning.
  • Indicates the effective cost of the loan.


  • It does not take into account other expenses of the loan.
  • The TIN percentage does not have more information on a loan without the presence of the APR.

What is TAE

APR represents the Annual Equivalent Rate. This is responsible for unifying the expenses and operating fees of a loan. The APR is the most representative percentage of a financing, since it provides real information about the total value to be paid.

The percentage of the Annual Equivalent Rate is more representative than the percentage of the TIN, due to the expenses it takes into account. On the other hand, to calculate the APR it is necessary to take into account the timing of the payment, the commissions and certain operating expenses.


  • It helps to compare with other loans, since you can determine if the cost is higher or lower.
  • Includes expenses, some of them are cancellation and opening.
  • Take into account the Nominal Interest Rate and the timing of the payments. (Monthly, quarterly, among others.)


  • The longer the payment term, the higher the percentage of the Annual Equivalent Rate.
  • Sometimes it is mandatory to take out financial products such as non-payment insurance.

The TIN and APR are official concepts, as they were awarded by the Bank of Nigeria. In addition, it is the law that banks and lenders indicate the percentages of each concept in their advertisements.

It is important to recognize what the TIN and APR are and their relationship in loans. In this way, it will be easier to find financing using comparators such as Ideal Loans and choose the loan that best suits your needs.

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