1, the applicable loan term is different: 1 year lpr interest rate is applicable to the loan market, and it is applicable to loans with a loan term of less than 5 years; The 5-year lpr interest rate is applicable to loans with a loan term of more than 5 years.
2. The quotation mechanism is different: 1 year lpr interest rate quotation is based on capital cost (including MLF cost), risk cost, occupation cost and operation cost; The price of 5-year lpr is 1 year lpr+ term premium.
What does lpr interest rate mean?
Lpr interest rate refers to the loan market interest rate quotation, which is generally used for mortgage loans. In terms of mortgage, the central bank will update an lpr interest rate every month as the benchmark interest rate for commercial banks' loans. Commercial banks will float on the basis of the benchmark interest rate according to the benchmark interest rate, the bank's quota, the customer's credit and risk, and then this data is the specific loan interest rate. In this regard, we can simply understand that lpr interest rate is an interest rate reference standard.
It should be noted that this interest rate is different from the current benchmark mortgage interest rate. The mortgage interest rates we have seen before are all announced by the central bank, and banks operate on the basis of this interest rate, while the lpr interest rate is quoted by the quoting bank according to the open market operating interest rate and calculated by the National Interbank Funding Center. Therefore, the latter is more market-oriented than the mortgage interest rate.
To sum up, this is the lpr interest rate. Generally speaking, this interest rate will be more sensitive and more adaptable to the market than the interest rate set by the central bank.
What do you mean by 1 year and 5-year lpr interest rates?
One-year LPR and five-year LPR are two maturity varieties of LPR. One-year LPR is suitable for loans with a loan term of five years or less, and is usually linked to the short-term loan interest rate of enterprises. Five-year LPR is suitable for loans with a loan term of more than five years, which is usually linked to the mortgage interest rate. Regulating LPR with different terms can not only guide the real economy to lower interest rates and reduce the cost of capital, but also maintain strict regulation of the real estate market and prevent funds from flowing into the property market.