One percent interest on a loan is one thousandth of the loan amount. For example, the annual interest rate of 1% is 1%, the monthly interest rate of 1% is 0. 1%, and the daily interest rate of 1% is 0.0 1%. Banks generally use annual interest rates, which are converted into monthly interest rates and daily interest rates according to specific purposes.

"One point" is calculated on a monthly basis at 1% of the loan amount. If the borrower borrows 1 ten thousand yuan, the interest generated in one month is 1 0/%of ten thousand yuan, that is, 100 yuan.

"One cent" is one tenth of a cent, and the interest is calculated on a monthly basis at one thousandth of the loan amount. If the borrower borrows 1 ten thousand yuan, then the interest for one month is 10 yuan.

Loan interest refers to the reward that the lender gets from the borrower for issuing monetary funds, and 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.

The interest rate of loan contracts with banks and other financial institutions as lenders can only be determined through consultation within the upper and lower limits of interest rates stipulated by the Bank of China. If the loan interest rate is high, the repayment amount of the borrower will increase after the loan term, otherwise it will decrease.

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