What is the benchmark loan interest rate in 2016?

According to documents issued by the central bank, the benchmark loan interest rate in 2016 is: 4.35% for short-term loans within one year (including one year); Medium and long-term loans of five years (inclusive) are 4.75%; long-term loans of more than five years are 4.90%. For personal housing provident fund loan interest rates, the loan interest rate is 2.75% for less than five years (including five years) and 3.25% for more than five years.

The benchmark interest rate for deposits and loans is the loan guidance interest rate issued by the central bank to commercial banks. It is one of the monetary policies used by the central bank to regulate the operation of the social economy and financial system. Commercial banks will formulate a combination of deposit interest rates based on this benchmark interest rate. Raising the benchmark interest rate means shrinking credit, reducing social mobility, increasing credit costs, and slowing economic development. Loan interest refers to the remuneration that the lender receives from the borrower for issuing monetary funds. It is also the price that the borrower must pay for using the funds. Bank loan interest rate refers to the ratio of interest amount to principal amount during the loan period. When determining the interest rate of a loan contract with a bank or other financial institution as the lender, the parties can only negotiate within the upper and lower limits of the interest rate stipulated by the People's Bank of China. If the loan interest rate is high, the borrower's repayment amount will increase after the loan period, otherwise, it will decrease. There are three major factors that determine loan interest: loan amount, loan term, and loan interest rate.

What is the annual interest rate for home purchase loans in 2016?

The basic interest rate for commercial loans for more than five years in 2016 will be 4.9%. After counting five interest rate cuts, the drop reached 20.33%. It has reached a record low. Many banks now adopt the method of adjusting interest rates the following year, so it will take until January 2016 to adjust.

Those who apply for a mortgage after October 24, 2015 can be calculated based on the latest interest rate of 4.9% (5 years to 30 years). In terms of provident fund, due to the interest rate cut on October 24, 2015, the personal housing provident fund loan interest rate was not adjusted. The provident fund loan interest rate has been reduced four times this year. The loan interest rate of personal housing provident fund for more than five years has been reduced from 4.25% at the beginning of the year. Current 3.25%.

Extended information:

Interest rate calculation for loans with equal principal amounts (basically principal: interest = 1:3)

1. If it is a loan The interest that should be paid for twenty years: 270,000 (yuan ~ loan amount) 5.04% (annual interest rate) 20 (year) = a (yuan)

2. If the loan is for twenty years, it should be paid Total principal and interest: 270,000 (yuan ~ loan amount) a (yuan) = b (yuan)

3. First month repayment: b (yuan) ÷ 240 (month ~ number of periods) = c (yuan)

Note: The monthly repayment amount has been reduced successively and will never exceed this amount.

4. First month’s interest: 270,000 (yuan ~ loan amount) 0.0042 (monthly interest rate) = d (yuan)

5. First month’s principal: c (yuan) -d (yuan) = e (yuan)

Note: Until the entire loan is repaid, the monthly principal remains unchanged at e yuan, which is where the name of the equal principal comes from.