Interest on bank loans is generally calculated with compound interest on a monthly basis. There are two ways to repay by installments, one is equal principal and interest, and the other is average capital.

Second, how to calculate the calculation method of bank loan interest

Interest = principal × interest rate × loan term; For example, the loan is 200,000 yuan, the monthly interest rate is 0.7 1%, and the monthly interest payable is 2,000,000.20.

Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. Banks put concentrated money and monetary funds out through loans, which can meet the needs of social expansion and reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase.

Third, how is the bank's loan interest calculated?

Generally speaking, the interest of bank loans is calculated by product interest method and transaction interest method. The product interest method is to accumulate the account balance every day according to the actual days of the loan, and then multiply the accumulated products by the daily interest rate to calculate the interest of the loan. In other words, interest is the daily interest rate multiplied by the accumulated interest product, where the accumulated interest product is the sum of the daily balances.

The interest of the transaction-by-transaction interest method is calculated by multiplying the principal by the interest rate and then multiplying it by the loan term. There are three ways to calculate interest. The first method takes the whole year or month as an interest period, and multiplies the principal by the number of years (months) and then by the annual interest rate (monthly interest rate) to calculate interest. The second is the result of multiplying the principal by the number of years (months) and the annual interest rate (monthly interest rate) by the number of days and then by the daily interest rate. The third way is that the bank can choose to convert the interest period into days, that is, calculate the interest according to the days, and multiply the principal by the actual days and then by the daily interest rate.