Legal analysis: interest on bank loans is calculated on an annual basis and on a monthly basis. It's just that the interest rates announced by banks are generally annual interest rates, but because the loans applied for in banks are generally repaid on a monthly basis, the interest is basically calculated on a monthly basis. For example, banks mainly use the average capital repayment method and the equal principal and interest repayment method. Both repayment methods calculate interest on a monthly basis.

Legal basis: Article 674 of the Civil Code of People's Republic of China (PRC) stipulates that the borrower shall pay interest within the agreed time limit. If the time limit for paying interest is not stipulated or clearly stipulated, and cannot be determined according to the provisions of Article 510 of this Law, if the loan period is less than one year, it shall be paid together with the loan; If the loan term is more than one year, it shall be paid at the end of each year; if the remaining term is less than one year, it shall be paid together with the loan.