LPR plus 30 basis points means that under the premise that LPR is floating, 30 basis points will be fixed as the final loan interest rate for this loan.

For example, the LPR for more than 5 years announced on June 22, 2020 is 4.65%, with a fixed increase of 30 basis points, which means a fixed increase of 0.3%, then the final loan interest rate is 4.95%. If the LPR rises, the loan interest rate in the second year will be higher than 4.95%. For users, LPR serves as the pricing benchmark, and the fewer basis points are added, the less interest needs to be paid on the loan.

Users can consult the bank when applying for a loan, so that they can know whether they meet the loan conditions and then apply. When applying for a loan, the borrower generally needs to be over 18 years old, have a good credit report, six months of bank statements, and proof of work, etc. The bank will review it after submission.

Introduction to LPR

Loan Prime Rate (LPR) is determined by a representative quoting bank based on the bank’s loan interest rate for the best customers in the open market. The operating interest rate (mainly refers to the medium-term lending facility interest rate) is quoted in the form of adding points. It is a basic loan reference interest rate calculated and published by the National Interbank Funding Center authorized by the People's Bank of China. Each financial institution should mainly refer to the LPR for loan pricing.

The current LPR includes two varieties: one-year term and more than five-year term. LPR has a high degree of marketization and can fully reflect the supply and demand of funds in the credit market. Using LPR for loan pricing can promote the formation of market-oriented loan interest rates and improve the transmission efficiency of market interest rates to credit interest rates.

On August 12, 2020, five major state-owned banks, ICBC, China Construction Bank, Agricultural Bank of China, Bank of China and Postal Savings Bank of China, simultaneously issued announcements that starting from August 25, personal housing loans within the scope of batch conversion will be subject to The relevant rules are unified and adjusted to the LPR (Loan Prime Rate) pricing method.

The above content refers to Baidu Encyclopedia-Loan Market Quoted Interest Rate