When comparing the various proposals for a loan, among the elements to be evaluated there is certainly the APR. This is the Annual Effective Annual Rate : in short it is an indicator, expressed as a percentage, of the actual cost of the loan, useful to help choose the most convenient offer also taking into account the ancillary costs of financing (for more information, please read our study: ” What are TAN and APR? Rates explained with simplicity “).
A tool of transparency at the service of the consumer, whose fundamental utility (social and legal) has not escaped even the largest operator of the online advertising market: Google AdWords.
Online advertising on loans: Google also wants the APR
The online advertising platform proposed by Google (Google AdWords), for policies on the disclosure of financial services, imposed the communication contextual to the announcement (on the landing page that is reached after clicking on the textual announcement) of some necessary elements to evaluate the quality of the loan offer:
- Minimum and maximum period for repayment of the loan;
- Example of a loan including total cost (commission included).
This obligation imposed on advertisers of financial services, under penalty of refusal of the announcement, is valid for the types of loans that Google has called “personal loans” (small loans, loans with guarantee, loans on pledge). Mortgages, finalized loans, school loans, credit cards and personal credit lines are not included.
Online loans: the comparison already from the announcement
The indication of the APR (together with the TAN) in advertisements that advertise loans must always be present and clearly identifiable: it is a legal requirement even before a Google request. It is therefore essential that the indication of these two indicators is verified in every promotion of loans (online and offline) and it is good to use these tools offered by banking transparency legislation to make an informed choice of financial services that best meet their needs. and possibility.