The calculation of loan interest is based on floating interest rate. Interest will be adjusted with the adjustment of interest rate, the benchmark interest rate will be adjusted, and the repayment amount will also be adjusted. For existing loans (loan mortgage), the floating (or falling) range during the loan period remains unchanged. If the benchmark interest rate is adjusted, the loan interest rate will rise (or fall) on the basis of the new interest rate.
Of course, no matter how it is calculated, it has no effect on the interest paid. Will affect the adjusted interest rate. Note: As for when to implement the new interest rate, it should be determined according to the nature of the loan (commercial loan or provident fund loan), the lending bank and relevant contract provisions.
Generally, there are three forms: first, after the bank's interest rate is adjusted, the newly adjusted interest rate will be implemented at the beginning of the following year (ICBC, Agricultural Bank of China and China Construction Bank are all like this); The second is the annual adjustment, that is, the new interest rate will be adjusted and implemented every year of repayment (this is the case with bank mortgage in China).
Third, the two sides agreed that the new interest rate level will generally be implemented in the next month after the adjustment of the bank interest rate, and the adjustment time of the provident fund loan interest rate will be 1 month 1 day every year.
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Target means: the benchmark interest rate is one of the important means for China's central bank to achieve monetary policy goals. The basis for setting the benchmark interest rate can only be the target of the monetary government. When the focus of policy objectives changes, the interest rate as a policy tool should also change.
Different interest rate levels reflect different policy requirements. When the policy focuses on stabilizing the currency, the interest rate of central bank loans should be raised in time to curb overheated demand. On the contrary, it should be lowered in due course.
For example, 1987, in view of the rising economic air, the State Council proposed "compressing economic air" and launched a campaign to increase production and save money. The central bank clearly put forward the monetary policy of "living a tight life" and raised the interest rate of central bank loans. Since the fourth quarter, the interest rates of annual loans and short-term loans have been raised from 3.4‰ and 5.4‰ to 6‰.
1988 in the fourth quarter, in the face of overheating and obvious inflation, the CPC Central Committee and the State Council put forward the policy of "managing the economic environment and rectifying the economic order", and a series of policy measures aimed at tightening monetary policy were successively introduced, including continuing to raise the central bank's loan interest rate, annual loan interest rate and short-term loan interest rate from 6‰ to 6.9‰ and 6.3‰ respectively.
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