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What does 5.6% loan interest mean?
The annual interest rate of the loan is 5.6%, which means that if you borrow 6.5438+0 million yuan, the annual interest will be 56,000 yuan, and so on.

1, Introduction

Interest is one of the manifestations of the time value of funds. From its formal point of view, it is the reward that the monetary owner gets from the borrower for issuing monetary funds. On the other hand, it is the price that the borrower must pay for using monetary funds. Interest is essentially a part of profit and a special form of profit transformation.

2. Formula interest

Interest (year) = principal × annual interest rate (percentage) × deposit period

Or interest = principal × interest rate× time

Deposit interest = principal x days x listing interest (daily interest rate) = interest-bearing days x daily interest rate

Interest tax = deposit interest (income tax payable) × applicable tax rate

3. Deposit interest rate

The People's Bank of China decided to lower the benchmark interest rates of RMB loans and deposits of financial institutions from 22 10/2065. The benchmark interest rate for one-year loans of financial institutions was lowered by 0.4 percentage points to 5.6%; The benchmark interest rate for one-year deposits was lowered by 0.25 percentage point to 2.75%. At the same time, the upper limit of the floating range of deposit interest rate of financial institutions is adjusted from 1. 1 times of the benchmark deposit interest rate to 1.2 times. The benchmark interest rates of other grades of loans and deposits are adjusted accordingly, and the term grades of benchmark interest rates are appropriately degenerate.