The full name of LPR is the quoted interest rate in the loan market. It is a basic loan reference interest rate calculated and published by representative quotation banks according to the bank's loan interest rate for the best quality customers and the open market operating interest rate (mainly referring to the medium-term lending convenience interest rate). All financial institutions should mainly refer to the loan pricing of LPR.
At present, China LPR quotation bank consists of 18 banks, covering representative banks at all levels such as state-owned banks, joint-stock banks, city commercial banks, rural commercial banks, private banks and foreign banks.
On August 20 19, the central bank announced that since August 20 19, the new mortgage interest rate has been linked to LPR from the benchmark interest rate of the central bank. The previous stock mortgage should also be converted within half a year from March/KLOC-0 to August 3/KLOC-0 in 2020. Lenders can choose to link to LPR or have the opportunity to choose a fixed interest rate.