In private lending, the interest of 1% refers to the monthly interest, and the interest in January is 0. 1% of the loan amount. If the loan 10000 yuan and the interest on 1% is 10 yuan, the annual interest rate is 120 yuan. General bank loans and other small local private lending institutions adopt slightly different interest-bearing methods, depending on the specific situation.
The loan interest rate is the interest rate charged by banks and other financial institutions to borrowers when they issue loans.
It is mainly divided into three categories: the loan interest rate of the central bank to commercial banks; The loan interest rate of commercial banks to customers; ? Interbank Offered Rate The decisive factors of bank loan interest rate are:
① Bank cost. Any economic activity needs cost-benefit comparison. There are two types of bank costs: borrowing costs-prepaid interest on borrowed funds; Additional cost-the cost of normal business.
② Average profit rate. Interest is the subdivision of profit, which must be less than the profit rate, and the average profit rate is the highest limit of interest.
(3) the supply and demand of borrowing money and funds. If the supply exceeds the demand, the loan interest rate will inevitably fall, and vice versa.
In addition, the loan interest rate must also consider price changes, securities returns, political factors and so on. However, some scholars believe that the upper limit of interest rate should be the marginal rate of return of funds.
The factor that restricts the interest rate is regarded as the comparison between the profit growth rate of enterprises after borrowing bank loans and the loan interest rate. As long as the former is not lower than the latter, it is possible for enterprises to borrow money from banks.
Refer to the above content: Baidu Encyclopedia-Loan Interest Rate