The floating interest rate of 10% in the last paragraph of the loan contract means that the interest rate agreed between the bank and you is floating, which is simply changed once a year. So how much will interest rates change in the future? According to the benchmark interest rate of the corresponding grade published by the People's Bank of China at that time, it rose by 10%. For example, the benchmark interest rate announced by the People's Bank of China is 6%, and the bank will charge you 6.6%. If the benchmark interest rate of the People's Bank of China is lowered to 5%, your lending bank will charge you interest at the rate of 5.5%.

The loan interest rate refers to the ratio of interest amount to principal amount during the loan period. The interest rate in China is managed by the People's Bank of China, and the interest rate determined by the People's Bank of China is implemented after being approved by the State Council. The loan interest rate directly determines the profit distribution ratio between the borrowing enterprise and the bank, thus affecting the economic interests of both borrowers and lenders. The loan interest rate varies with the types and duration of loans, and it is also related to the scarcity of borrowing funds.