7.8% refers to the monthly interest rate, that is, 0.78% annual interest rate: 0.78%* 12=9.36% monthly interest rate: 100000*0.78%=780 annual interest rate:100000 * 9.36% = 933.
Calculation of loan interest:
I. The interest rate conversion formula for RMB business is (note: common for deposits and loans):
1, daily interest rate (0/000)= annual interest rate (%)÷360= monthly interest rate (‰)÷30.
2. Monthly interest rate (‰) = annual interest rate (%)÷ 12.
Two, banks can use product interest method and transaction interest method to calculate interest.
1. Accumulate the account balance daily according to the actual number of days, and multiply the accumulated product by the daily interest rate to calculate the interest. The interest-bearing formula is: interest = accumulated interest-bearing products × daily interest rate, where accumulated interest-bearing products = total daily balance.
2. Transaction-by-transaction interest calculation method calculates interest one by one according to the preset interest calculation formula: interest = principal × interest rate × loan term, with three details:
(1) If the interest-bearing period is a whole year (month), the interest-bearing formula is: interest = principal × year (month )× year (month) interest rate.
(2) If the interest period has a whole year (month) and odd days, the interest formula is: interest = principal × number of years (months) × annual (month) interest rate+principal × odd days × daily interest rate.
(3) At the same time, banks can choose to convert the interest period into actual days to calculate interest, that is, 365 days per year (366 days in leap years), and each month is the actual number of days in the Gregorian calendar of the current month. The interest-bearing formula is: interest = principal × actual days × daily interest rate.
These three formulas are essentially the same, but because the interest rate conversion is only 360 days a year. However, when calculating the actual daily interest rate, it will be calculated according to 365 days a year, and the result will be slightly biased. Which formula is used specifically, the central bank gives financial institutions the right to choose independently. Therefore, the parties and financial institutions can agree on this in the contract.
In 2004, the central bank released the floating range of bank loan interest rate, and the upper limit of bank loan interest rate was no longer limited, and the lower limit was 0.9 times of the benchmark interest rate. However, there is still an upper limit on the loan interest rate of credit cooperatives, which requires that the upper limit of the loan interest rate of credit cooperatives should not be higher than 2.3 times the benchmark interest rate.
In 20 13, upon approval, the People's Bank of China fully liberalized the loan interest rate control of financial institutions from July 20th, 20 13, and cancelled all the restrictions involved in the lower limit of loan interest rate, discounted bill interest rate and upper limit of loan interest rate of rural credit cooperatives.
20 15 the bank changed the interest rate to the one-year benchmark interest rate of 4.35%. The People's Bank of China decided to lower the benchmark interest rates of RMB loans and deposits of financial institutions from 20 15124, to further reduce the social financing costs.
Among them, the benchmark interest rate for one-year loans of financial institutions was lowered by 0.25 percentage points to 4.35%; The benchmark interest rate for one-year deposits was lowered by 0.25 percentage point to1.5%; The benchmark interest rates of other loans and deposits and the lending rates of the People's Bank of China to financial institutions are adjusted accordingly; The interest rate of individual housing provident fund loans remains unchanged.