Is the loan interest rate an annual interest rate or a monthly interest rate?

The bank loan interest rate refers to the annual interest rate.

Bank loan interest rate refers to the ratio of interest amount to principal amount during the loan period. my country's interest rates are uniformly managed by the People's Bank of China. The bank loan interest rate refers to the benchmark interest rate set by the People's Bank of China, and the actual contract interest rate can fluctuate within a certain range based on the benchmark interest rate.

The loan interest rate refers to the ratio of the interest amount to the principal amount during the loan period. When determining the interest rate of a loan contract with a bank or other financial institution as the lender, the parties can only negotiate within the upper and lower limits of the interest rate stipulated by the Bank of China. If the loan interest rate is high, the borrower's repayment amount will increase after the loan period, otherwise, it will decrease.

Extended information

Notes

1. When applying for a loan, the borrower must make a correct judgment on his or her repayment ability. Design a repayment plan based on your income level, and leave appropriate room for it so as not to affect your normal life.

2. Choose a suitable repayment method. There are two methods of equal repayment and equal principal repayment. Once the repayment method is agreed in the contract, it cannot be changed during the entire loan period.

3. Make monthly repayments on time to avoid penalty interest. Starting from the next month after the loan is initiated, the loan is generally released on the repayment date in the next month. Don't incur default penalties due to your own negligence, which will lead to failure to approve the bank's loan application again.

4. Keep your contract and IOU properly, and read the terms of the contract carefully to understand your rights and obligations.