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Representative Example for SME Loans up to £25,000

8.9% APR representative1 (fixed2); Based on an assumed loan amount of £14,500 over 35 Monthly repayments of £469.61. Total amount payable £16,436.35

Loan Amount: £14,500

Term: 35 months

Monthly repayment: £469.61

Total amount payable: £16,436.35

Annual Percentage Rate Representative (APR Representative): 8.9% APR representative (fixed)

Flat rate: 4.6%


Annual Percentage Rate (APR) is the total cost of the credit expressed as an annual percentage. It represents the actual yearly cost of credit over the loan term. The APR will vary depending on the loan amount and term.

  1. Annual Percentage Rate Representative (APR Representative) is the advertised rate (or a lower rate) we reasonably expect at least 51% of people who are accepted for and enter into the loan agreement will pay.
  2. Fixed: The interest rate is fixed for the term of the loan and agreed at the outset. Interest charges are calculated at the outset of the agreement based on the amount of credit, the interest rate and term of the agreement.

How do we determine the Representative example?

In order to ensure that the example above is truly representative, Northridge carry out the following at least twice yearly:

  • Rate: On all approved applications during previous 12-month period, we review the rates (APR) our customers obtained and use this to determine what rate, or better, we would reasonably expect a minimum of 51% or more of our customers to receive on new loan applications.
  • Term: We have used the average (‘mean’) term during the 12 month period (rounded to nearest month).
  • Loan amount: We have used the average (‘mean’) credit amount during the period (rounded to nearest £500).

Using the above average loan amount and term, along with the APR at which we reasonably expect a minimum of 51% of new customers to be charged or better, we have calculated the representative example above.