An enterprise borrows 2 million yuan from a bank with an annual interest rate of 5%, and the bank requires to keep the compensation balance 15%. What is the real interest rate of the loan? Explain why. Effective interest rate = annual interest/actual available loans = (200 * 5%)/200 * (1-15%) = 5.88%.

Because the real interest rate is equal to the interest you actually paid divided by the money you actually borrowed, the interest to be paid is 200*5%= 10 (ten thousand yuan), and 2 million 15% is the compensatory balance, so the actual money is 200 * (1-kloc-0/5%).

Compensatory balance is actually a way for banks to reduce their own loan risks. However, for borrowing enterprises, the compensatory balance increases the real interest rate of borrowing and increases the interest burden of enterprises.

Extended data

Influence of enterprise income tax rate on real interest rate

Long-term loan interest with compensatory balance obtained by enterprises from banks can be deducted before tax, which is helpful for enterprises to reduce tax burden. Therefore, the real interest rate of long-term loans with compensatory balance = nominal interest rate *( 1- corporate income tax rate) /( 1- compensatory balance ratio).

Suppose the enterprise income tax of the enterprise in the above example is 25%. Actual interest rate = nominal interest rate *( 1- corporate income tax rate) /( 1- compensatory balance ratio) = 5% * (1-25%)/(1-0/5%) = 4.466.

Baidu encyclopedia-compensatory balance