Of course, this is voluntary. Users can choose fixed interest rate or LPR bonus points. After selecting the loan pricing benchmark conversion, some users need to re-sign the loan contract. For users who re-sign loan contracts, the corresponding loan interest will also change because the interest rate has changed.
The conversion of personal loan pricing benchmark refers to friends who bought a house and mortgaged it before 20 19. After March 2020 1, the interest rate pricing method agreed in the original contract can be converted into a pricing benchmark based on the quoted interest rate in the loan market, and the value will be fixed during the remaining period of the contract. It can also be converted into a fixed interest rate. In other words, the conversion of personal loan pricing benchmark means that all existing mortgage users must choose one of the original mortgage interest rates, either fixed interest rate or LPR pricing rate. Converting to a fixed interest rate means converting to the mortgage interest rate agreed in the latest contract, and will not be converted in the future; After converting into lpr pricing rate, your future loan interest rate is closely related to the lpr published by the central bank every month.
LPR is the abbreviation of preferential interest rate for loans, which means the quoted interest rate in the loan market, and was originally called the benchmark interest rate for loans. Now, when we borrow money from the bank, the bank will add some discount points on the basis of LPR (loan market quotation rate). Therefore, the role of LPR is equivalent to the previous benchmark loan interest rate. So, why change it to LPR (loan market quotation) now? This is because the lpr pricing interest rate is highly marketized and can fully reflect the supply and demand of funds in the credit market. Lpr pricing benchmark means that our actual loan interest rate is all based on lpr, which can be negative or positive. This is basically fixed. For example, now lpr is 4.7%. If you add 60, your actual loan interest rate is 5.3%. When lpr drops to 4.5%, your actual loan interest rate is 5. 1%.