The annual loan interest rate refers to the loan interest rate calculated with one year as the interest-bearing period, that is, the one-year loan interest rate. The benchmark annual interest rate of bank loans issued by the People's Bank of China is one of the monetary policies used by the central bank to regulate the operation of social economy and financial system. Commercial banks will formulate loan interest rate portfolios according to the benchmark interest rate. If the benchmark interest rate is raised, it means that credit will shrink, social mobility will decrease, credit cost will increase and economic development will slow down.

The formula of annual loan interest rate is: interest = principal × annual (monthly )× annual (monthly) interest rate; If the interest-bearing period has a whole year (month) and decimals, the interest-bearing formula is: interest = principal × years (months) × years (months) interest rate+principal × decimal days × daily interest rate.