LPR refers to Loan Prime Rate, which is the loan base interest rate. It is considered the reference interest rate published by the People's Bank of China and is the basis for banks to determine loan interest rates. This means that if the LPR rises, the borrower's loan interest rate will also rise. On the contrary, if the LPR decreases, the borrower's loan interest rate will also decrease.

The increase means that the bank can increase the loan interest rate based on the borrower's credit evaluation and risk assessment. This means that when you apply for a loan, the bank can increase the LPR by a certain percentage to reflect the borrower's credit status and loan risk. Generally speaking, the higher the floating rate, the higher the interest the borrower needs to pay.

What impact will the increase in LPR have on borrowers?

When the LPR rises, borrowers need to pay higher loan interest rates, which means they need to pay higher loan costs. Therefore, rising LPR may increase borrowers' repayment pressure and affect their cash flow. Therefore, when applying for a loan, borrowers should pay attention to choosing an appropriate loan term and interest rate type to minimize the impact of LPR increases on them.