In private lending, interest is usually calculated by "points", "points" and "points" 1 cent equals one percent, 1 cent equals one thousandth, 1 cent equals one ten thousandth. So if the annual interest rate is 16%, it is 16 cents. The conversion formula among annual interest rate, monthly interest rate and daily interest rate is: daily interest rate = annual interest rate ÷360= monthly interest rate ÷30, monthly interest rate = annual interest rate ÷ 12= daily interest rate ×30, annual interest rate = monthly interest rate × 12= daily interest rate ×360.
The annual interest rate 16% is not particularly low, but it is reasonable. When applying for a loan, you need to pay attention to the fact that the annual interest rate cannot exceed 36%, otherwise it is usury. If the annual interest rate of the loan exceeds 36%, the excess interest is actually invalid and the customer does not have to repay it. The annual interest rate is 36%, that is, the annual interest rate is 36 points; Converted into monthly interest rate: 36%12 = 3%, that is, the monthly interest rate is 3 minutes; The daily interest rate is 36%÷360=0. 1%, that is, the daily interest of 1%.
The annual interest rate refers to the one-year deposit rate. The so-called interest rate is the abbreviation of interest rate, which refers to the ratio of interest amount to deposit principal or loan principal within a certain period of time. Usually divided into annual interest rate, monthly interest rate and daily interest rate. The annual interest rate is expressed as a percentage of the principal, the monthly interest rate as a percentage, and the daily interest rate as a percentage. When the economic development is in the growth stage, the investment opportunities of banks increase, the demand for loanable funds increases and interest rates rise; On the other hand, when the economic development level is low and the society is in a depression period, banks' willingness to invest will decrease, and the demand for loanable funds will naturally decrease, and the market interest rate will generally be low.
The People's Bank of China has strengthened the use of interest rate instruments. Interest rate adjustment is frequent year by year, the interest rate regulation mode is more flexible, and the regulation mechanism is becoming more and more perfect. With the gradual advancement of interest rate marketization reform, interest rate policy, as one of the main means of monetary policy, will gradually change from direct regulation to indirect regulation. As an important economic lever, interest rate will play a more important role in the national macro-control system.
Since the reform and opening up, the People's Bank of China has strengthened the use of interest rate instruments, and gradually made interest rates an important lever by adjusting the level and structure of interest rates and reforming the interest rate management system. In May and July of 1993, the People's Bank of China raised the deposit and loan interest rates twice, and in May and July of 1995, it raised the loan interest rates twice. These adjustments have effectively controlled inflation and the scale of fixed assets investment. In May and August, 1996, 1997 10 and March 1998, in view of the remarkable achievements in macroeconomic regulation and control and the obvious drop in market prices, the central bank lowered the deposit and loan interest rates four times in time, which reduced the interest burden of enterprises, especially large and medium-sized state-owned enterprises, on the basis of protecting the interests of depositors.