According to the announcement, starting from March 1 2020, financial institutions should negotiate with existing floating-rate loan customers on the conversion terms of the pricing benchmark, and convert the interest rate pricing method agreed in the original contract into an LPR pricing benchmark plus item (the plus item can be negative), and the plus item will remain unchanged during the remaining period of the contract; It can also be converted into a fixed interest rate.
According to the announcement, the pricing benchmark can only be converted once, and it cannot be converted again after conversion. In the last repricing cycle, the floating-rate loan of inventory shall not be converted. In principle, the conversion of the pricing benchmark of floating rate loans should be completed before August 3, 20201.
In terms of commercial personal housing loans, the People's Bank of China has made it clear that if the pricing benchmark of floating interest rate loans is converted into LPR, the value-added amount should be equal to the difference between the latest interest rate level of the original contract and the corresponding term LPR released in February 20 19. Thereafter, from the first repricing date, the interest rate level is recalculated on each interest rate repricing date, and is determined by the corresponding period LPR and added value of the latest month.
Reportedly, financial institutions can renegotiate the repricing period and repricing date when negotiating pricing benchmark conversion terms with customers, among which the shortest repricing period for commercial personal housing loans is one year. If the stock floating interest rate loan is converted into a fixed interest rate, the converted interest rate level shall be determined by the borrower and the borrower through consultation, and the converted interest rate level of commercial personal housing loan shall be equal to the latest interest rate level of the original contract.
In addition, the announcement said that since June 5438+ 10/0/day, all financial institutions are not allowed to sign floating rate loan contracts with reference to the benchmark loan interest rate.