The annualized interest rate means converting the actual interest rate over a period of time into an annual interest rate.

1. The annualized interest rate refers to the interest rate discounted to the whole year through the inherent rate of return of the product. On March 31, 2021, the People's Bank of China issued an announcement to make relevant regulations on the annualized loan interest rate of loan products

2. All institutions engaged in loan business will use the website, mobile applications, and publicity When marketing through posters and other channels, the annualized interest rate should be displayed to the borrower in an obvious way. Institutions engaged in loan business include but are not limited to depository financial institutions, automobile finance companies, consumer finance companies, small loan companies, and Internet platforms that provide advertising or display platforms for loan business, etc.

3. The annual interest rate of the loan shall be calculated as the ratio of all loan costs charged to the borrower to the loan principal actually occupied, and converted into an annualized form. The annual interest rate of a loan can be calculated using the compound interest or simple interest method: the compound interest calculation method is the internal rate of return method; if the simple interest calculation method is used, it should be stated that it is simple interest

4. Interest rate refers to the interest within a certain period of time The ratio of the amount to the amount of borrowed funds (principal). Interest rate is the main factor that determines the level of corporate capital costs. It is also a decisive factor in corporate financing and investment. Research on the financial environment must pay attention to the current status of interest rates and their changing trends.

5. Interest rate refers to the ratio of the amount of interest due each period to the face value of the amount borrowed, deposited or borrowed (called the total principal amount). The total interest on the amount lent or borrowed depends on the total principal amount, the interest rate, the frequency of compounding, and the length of time it is lent, deposited, or borrowed.

Interest rate is the price that a borrower pays for borrowing money, and it is also the return that a lender earns from lending to a borrower by delaying his or her consumption. The interest rate is usually calculated as a percentage of the one-year interest to the principal.

6. In the modern economy, interest rate, as the price of funds, is not only restricted by many factors in the economy and society, but also changes in interest rates have a significant impact on the entire economy. The interest rate determination theory has also experienced the classical interest rate Theory, Keynesian interest rate theory, loanable funds interest rate theory, IS-LM interest rate analysis and the evolution and development process of contemporary dynamic interest rate models.