There is a saying that when the loan cools down for a while, the money will be returned to the crematorium. That's because some loans don't indicate the loan age, so some borrowers find that the principal plus interest is particularly high when they pay back the money, so on March 3 1, the central bank issued an announcement, explicitly requiring all loan products to indicate the annualized interest rate of the loan. So what does it mean to express annualized interest rates?

First of all, let's understand what is the annualized rate of return.

Annualized interest rate refers to the interest rate discounted to the whole year through the inherent rate of return of products. The annualized loan interest rate is calculated according to the ratio of all loan fees charged by the borrower to the actual loan principal, and converted into annualized form. The annualized loan interest rate can be calculated by compound interest or simple interest method: compound interest is calculated by internal rate of return; If the simple interest calculation method is adopted, it should be explained that it is simple interest.

2. What is the relationship between annual interest rate and interest?

From the above information, the higher the annual interest rate, the higher the interest. Therefore, the state will issue a document asking major lending platforms to clearly mark the annual interest rate, so that borrowers have a bottom, otherwise they will borrow money in a muddle, and when they pay back the money, they find that the interest rate is so high that it is a bit unacceptable.

Third, the loan platforms are now mixed, and efforts should be made to rectify them.

At present, there are numerous loan platforms on the market. In particular, some platforms have low thresholds and the annual interest rate is not clearly stated. Some students in unknown so borrowed money, and later found that the interest rate was so high that some students had suicidal thoughts because they could not pay back the money. Therefore, the state should intensify efforts to rectify these informal lending platforms. Take my brother for example, because he needed money badly, he actually borrowed 5000 yuan from the platform, and he will pay back nearly 10000 yuan in two months. This interest rate is really scary, and these platforms will deceive those students who have no social experience. People like us who go to work will know how high the interest is when they pick up their mobile phones. Ordinary people do not need money urgently and will not borrow money easily.

Generally speaking, if there is no emergency, it is best not to borrow money easily. Loans will affect credit reporting and the interest will be high.