Legal basis: Provisions on the Administration of RMB Interest Rate
Twentieth short-term loans (term less than one year, including one year), according to the legal loan interest rate of the corresponding grade on the date of signing the loan contract. During the loan contract period, in case of interest rate adjustment, interest will not be calculated by installments. Short-term loans are settled quarterly, and the 20th day of the last month of each quarter is the settlement date; If the interest is settled on a monthly basis, the 20th of each month is the interest settlement date. The specific interest settlement method shall be determined by the borrower and the lender through consultation. Interest that cannot be paid on schedule during the loan period shall be compounded quarterly or monthly according to the loan contract interest rate, and after loans overdue, at the default interest rate.