In general private lending, "a few cents" and "a few cents" are often used to express the interest rate of loans, among which:
In other words, 1 equals 10%.
The loan interest rate of 5% generally refers to the monthly interest rate of 5%, that is, the monthly interest rate of 0.5%.
If we borrow100,000 yuan at this interest rate, the monthly interest will be:
Monthly interest = loan principal * monthly interest rate of loan = 65438+ ten thousand * 0.5%=500 yuan.
The monthly interest 500 yuan is multiplied by 12, and it is concluded that the interest to be paid for the loan in one year is 6000 yuan.
The corresponding annual interest rate of this loan is:
Annual interest rate = monthly interest rate * 12=0.5%* 12=6%.
See here, you should understand what 5% interest means?
Related Q&A: Related Q&A: The monthly interest rate is 5%, which means 1 yuan, 1 month, with 5% interest, right? Thank you for inviting me!
The "monthly interest rate of 5%" you asked really means that the borrower needs to pay 5% interest every month when borrowing 1 yuan, which is expressed as a percentage of 0.5%. This is a common saying of private lending in China. In private calculation, interest is often not expressed according to the benchmark interest rate of the central bank, but calculated according to a point or a dime.
It seems that many people still don't understand the calculation method or expression of private lending interest. So today I will simply understand how the interest of private lending is calculated by answering this friend's question.
Take the loan interest of 5% in the title, which means that the interest is calculated according to one thousandth of the loan amount, generally referring to the monthly interest rate. In private lending, borrowers and borrowers usually agree on loan interest in the form of "a few cents" or "a few cents". For example, annual interest 1% is 1%, monthly interest 1% is 0. 1%, and daily interest 1% is 0.0 1%. Banks convert annual interest rates into monthly interest rates or daily interest rates according to specific purposes.
Generally speaking, the conversion method between annual interest rate, monthly interest rate and daily interest rate is as follows:
Annual interest rate = monthly interest rate * 12 or daily interest rate *365.
Monthly interest rate = annual interest rate/12 or daily interest rate *30.
Daily interest rate = annual interest rate /365 or monthly interest rate /30.
According to the practice of private lending, part of the "one-point profit" is calculated on a monthly basis, that is, according to one percent of the loan amount. For example, if a borrower borrows 1 10,000 yuan, the interest generated in one month is 1 0% of/10,000 yuan, that is, 100 yuan.
If it is "one point interest", then one point is one tenth of one point, and the calculation of monthly interest is to calculate interest according to one thousandth of the loan amount. For example, if the borrower borrows 1 10,000 yuan, then the interest to be repaid in one month is 10 yuan.
To sum up, I think the monthly interest rate of 5% is not very high, because according to the above annual interest rate conversion, it is only equivalent to the annualized interest rate of 6%. At present, the mortgage interest rate of most domestic banks is basically between 5% and 6%.