If the loan principal is RMB 100,000 and the term is 1 year, the loan base annual interest rate of the People's Bank of China for 6 months to 1 year (including 1 year) will be 4.35% (remaining unchanged). Principal and interest repayment method, monthly payment: 8530.99, total repayment: 102371.88, total interest: 2371.88.

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, and vice versa. There are three major factors that determine loan interest: loan amount, loan term, and loan interest rate.

Collapse of legal interest rates

The various interest rates approved by the State Council and set by the People's Bank of China authorized by the State Council are legal interest rates. The head office of the People's Bank of China is responsible for the announcement and implementation of legal interest rates.

Collapsed benchmark interest rate

The deposit and loan interest rates of the People's Bank of China for commercial banks and other financial institutions are the benchmark interest rates. The base interest rate is determined by the Head Office of the People's Bank of China.

Contract interest rate

The lender shall agree with the borrower *** based on the legal loan interest rate and the floating range stipulated by the People's Bank of China and specify it in the loan contract The interest rate on a specific loan.

Loan interest rates and interest

The "General Rules for Loans" stipulates:

(1) Determination of loan interest rates: Lenders shall follow the loan interest rates stipulated by the People's Bank of China The upper and lower limits of each loan interest rate shall be determined and stated in the loan contract;

(2) Calculation and collection of loan interest: The lender and the borrower shall calculate interest in accordance with the loan contract and the People's Bank of China It stipulates that interest is charged or paid on a regular basis. When the extension period of the loan plus the original period reaches a new interest rate grade, the new term grade interest rate will be calculated from the date of extension. Overdue loans will be charged penalty interest in accordance with regulations.

(3) Interest discounts on loans: According to national policies, in order to promote the development of certain industries and regional economies, relevant departments can subsidize interest on loans. For loans with interest discounts from relevant departments, the undertaking banks should independently review and issue them, and strictly manage them in accordance with the relevant provisions of the "General Rules for Loans".

(4) Loan interest suspension, interest reduction and interest exemption: Except as stipulated by the State Council, no unit or individual has the right to decide on interest suspension, interest reduction or interest exemption. Lenders shall handle interest suspensions, reductions and exemptions in accordance with the decisions of the State Council and within the scope of their duties and powers.