Nominally, it is 18% of last year's, but the actual principal has been paid, and there is no interest. The interest on borrowing 10000 is 900, which is not high for people who are short of money.

Please refer to the current loan interest rate table:

Annual interest rate%

I. Short-term loans

Six months (inclusive) 4.35

Six months to one year (inclusive) 4.35

Second, medium and long-term loans

One to three years (inclusive) 4.75

Three to five years (inclusive) 4.75

More than five years 4.9

The upper limit is 4.75%*4= 19% based on the 20-month term of small loans, and the small loans shall not exceed 4 times the legal loan interest rate.

Small loans are repaid by the average capital repayment method and internal rate of return.

1. Is the interest rate of micro-loan usury? The answers are as follows:

First of all, I can tell you clearly: microfinance is not usury.

Definition of usury: "According to the new resolution implemented in September of 1, 20 15, the interest rate of private lending is mainly regulated in three stages. Agree that no more than 24% of the courts support it every year; The court will not support the part that exceeds 24% and does not exceed 36%, but the court will not support the part that the debtor has paid back;

If it exceeds 36%, the borrower can ask the lender to return the money already paid. ",that is, the interest rate is higher than 24% to calculate usury, strictly speaking, usury is more than 36%. We only support the lender to return the overcharged interest. Therefore, the interest rate of micro-loan is 18.25%, which is far from usury according to the interest rate of five ten thousandths per day.

Speaking of which, let's popularize it again. At present, the interest rate of the circulating balance of bank credit cards is five ten thousandths per day. Circulating balance refers to the circulating credit balance when the cardholder's repayment amount is equal to or higher than the minimum repayment amount of the current bill, but lower than the current repayment amount.

The calculation rule of cyclic interest is: the consumption amount of the last bill is the interest-bearing principal, the interest-bearing days are from the account bookkeeping date to the account repayment date, and the daily interest rate is five ten thousandths. However, it should be noted here that if you choose to use revolving credit, you will not enjoy the current interest-free repayment period. Then the interest rate is the interest of the consumption principal plus the interest of the remaining principal after repayment. Take a look at this link specifically: interest-free period/revolving credit line/interest.

Microfinance is the repayment of equal principal, with the reduction of principal, interest is getting less and less. Therefore, many people will use small credit loans and pay back their credit cards in full, because it is much more cost-effective.

Second, the interest rate of small loans:

As mentioned above, micro-loans repay the principal in equal amount, and the paid principal does not bear interest, so the interest rate is lower than 18.25%.