7% interest refers to the monthly interest rate, which is 0.7%. According to the normal understanding and the actual market situation, 7% refers to the interest rate of 0.7%. The annual interest rate of this loan is 7.000%, the monthly repayment is 2049.66 yuan, and the total principal interest is 6 14897.90 yuan. The interest is 324,897.90 yuan.
The interest rate conversion formula for RMB business is (note: common for deposits and loans):
1, daily interest rate (0/000)= annual interest rate (%) ÷ 360 = monthly interest rate (‰)÷30.
2. Monthly interest rate (‰) = annual interest rate (%) ÷ 12.
Determination of loan interest rate
1. Determination of loan interest rate: The lender shall determine the interest rate of each loan according to the upper and lower limits of loan interest rate stipulated by the People's Bank of China, and specify it in the loan contract.
2. Collection of loan interest: Lenders and borrowers shall collect or pay interest on schedule in accordance with the loan contract and relevant interest-bearing provisions of the People's Bank of China. When the loan extension period plus the original term reaches the new interest rate grade, it will be charged at the new term grade interest rate from the date of extension. Penalty interest is charged for overdue loans according to regulations.
3. Loan interest subsidy: According to the national policy, in order to promote the economic development of certain industries and regions, the relevant departments may subsidize the loan interest. Loans subsidized by relevant departments shall be independently examined and issued by the undertaking bank, and strictly managed in accordance with the relevant provisions of the General Rules for Loans.
The above contents refer to Baidu Encyclopedia-Loan Interest Rate.
What does the interest rate of seven yuan for a loan mean?
7% interest rate means that the monthly interest rate is 7‰. You can get monthly interest by multiplying the principal by the interest rate.
For example, if you apply for a loan from a financial institution 100000 yuan with a monthly interest rate of 7‰, then the monthly interest rate is 700.
When the economy is overheated and inflation rises, it will raise interest rates and tighten credit; When the economy is overheated and inflation is controlled, interest rates will be lowered appropriately.
Therefore, interest rate is one of the important basic economic factors. Interest rate is an important financial variable in economics, and almost all financial phenomena and financial assets are related to interest rate to some extent.
Extended data:
Interest rates in different countries have different connotations. In China, interest rate usually refers to the bank interest rate, and further refers to the benchmark deposit and loan interest rate stipulated by the People's Bank of China.
In the United States, it mainly refers to the bond market interest rate. The so-called benchmark interest rate adjusted by the Federal Reserve is not a mandatory administrative benchmark interest rate, but an overnight lending rate determined by open market operations.
The reason why the connotations are different is that the basic national conditions and economic systems of the two countries are fundamentally different. Planned economy and planned economy are transformed into market economy. Due to the influence of traditional economic and financial structure mode, mandatory mandatory administrative regulations are direct, effective, fast and accurate at these stages.
Coupled with the limited market operation ability and lack of experience of the central bank, the benchmark interest rate has still become a common interest rate determination standard in society. The Fed has a high degree of marketization, and every adjustment of its "federal funds rate" is the market result obtained after the open market operation.
Broadly speaking, the interest rate is not limited to the bank interest itself, but also includes the bond market, and can even be included in the stock dividend as another form of dividend.
In fact, in the United States, the proportion of direct financing is much greater than that of indirect financing. Corporate bonds, financial bonds and public listing of stocks are all very important financing means, and the concept of interest rate can be used for analysis at this time.
Understanding the different connotations of interest rate will help us to have a deeper understanding of the financial concept of interest rate, especially its formation, change and derivation need to be determined by the market, which is a very key element.