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Why does the decline in credit capacity lead to an increase in loan interest rates?
The smaller the credit capacity, the worse the borrower's personal qualifications, and the corresponding lending institutions need to bear greater loan risks. The greater the loan risk borne by the lending institution, the borrower will not be able to apply for low-interest loans, so the reduction of credit capacity will promote the increase of loan interest rate.

Similarly, if the borrower's credit ability is enhanced, it is easier to apply for a loan with a lower loan interest rate.