calculation method of real estate development loan interest: interest is equal to principal multiplied by interest rate multiplied by loan term. According to the loan contract and the relevant interest-bearing provisions of the People's Bank of China, it can be collected on schedule; If the loan is extended, the loan interest will be collected according to the new term and grade interest rate from the date of extension.

Legal basis

Article 13 of the General Principles of Loans

Determination of loan interest rate:

The lender shall determine the interest rate of each loan according to the upper and lower limits of the loan interest rate stipulated by the People's Bank of China, and specify it in the loan contract.

Article 14

Collection of loan interest:

Lenders and borrowers shall collect or pay interest on schedule according to the loan contract and relevant interest-bearing regulations of the People's Bank of China.

when the extension term of the loan plus the original term reaches the new interest rate term level, the loan interest will be charged at the new term level interest rate from the date of extension.

default interest is charged for overdue loans according to regulations.