When private lending institutions handle loan business, they often hear that interest is a few cents or a few cents. Generally, private lending is calculated by points or points. Usually, 5% means that the monthly interest rate of the loan is 0.5%. However, some institutions refer to the daily interest rate. Therefore, when handling private lending, if the interest rate is 5%, then the borrower must see clearly whether the interest rate agreed in the loan contract is the monthly interest rate or the daily interest rate. The interest rate under different circumstances is quite different from the interest that the borrower needs to pay.

Take the loan of 6,543,800 yuan and the loan period of 654.38+0 years as an example:

1. If the monthly interest rate is 5%, the interest for one month is 50 yuan, and the interest for one year is:10000 * 0.5% *12 = 600 yuan. If the monthly interest rate of 5% is converted into annual interest rate, it is 0.5%* 12=6%. At present, the bank loan is one year.

2. If 5% is the daily interest rate, it means that the daily interest rate is 0.5%; Then if you borrow 1 10,000 yuan, the interest for one day is 50 yuan, and the annual interest rate converted from 5% daily interest rate is 180%, and the interest to be paid for one year is 18000 yuan, and the repayment interest is even higher than the principal. This interest rate is already usury, which is illegal. Therefore, borrowers should pay attention to see clearly that if they borrow usury, the interest that users need to pay is not small.

3. If the annual interest rate is 5%, then the loan is 6,543,800 yuan, and the interest for one year is 50 yuan.