The loan interest rate is the interest rate charged by banks and other financial institutions to borrowers when granting loans, and it is the ratio of the interest amount to the principal amount during the loan period. It mainly includes the loan interest rate of the central bank to commercial banks, the loan interest rate of commercial banks to customers and the interbank lending rate. The decisive factors of bank loan interest include bank cost, average profit rate and the relationship between supply and demand of borrowing money and funds.

When applying for a loan, the borrower should make a correct judgment on his repayment ability. Design a repayment plan according to your income level, choose the appropriate repayment method, repay on time every month, and avoid penalty interest. There are two repayment methods: equal repayment method and equal principal repayment method. Once the repayment method is agreed in the contract, it shall not be changed during the whole loan period.