Taking out a loan can be confusing, especially when it is a payday loan. By law, lenders have to publish their APR (or annual percentage rate), when they advertise their loans. However, the APR is not necessarily the same as the actual percentage of interest you will need to pay back when you take out a payday loan. And that's a good thing too.Payday loans generally attract high APRs, often into the multiple of thousands in percentage terms. Seeing ‘3000%' as the listed APR of a particular loan can be frightening. However, it is important to remember that there is a distinction between the APR and the actual repayment rate of a payday loan.