Origination Fee
An origination fee is what a lender charges to process and set up a new loan. It is usually a percentage of the amount borrowed, and it is often deducted from the money you receive rather than billed separately.
Because the fee frequently comes out of the loan proceeds, the amount that reaches your account can be smaller than the amount you agreed to repay. A $10,000 loan with a 5% origination fee pays out $9,500, while interest is still charged on the full $10,000.
That is why the fee belongs inside APR rather than beside it. Comparing two loans on interest rate alone hides a real difference in cost when one charges an origination fee and the other does not.
Not every lender charges one, and where it exists the size often varies with credit profile and loan type.