How to calculate the annual loan interest rate
The formula for calculating the annual loan interest rate is: interest = the annual loan interest rate. If the loan is 1, yuan, the term is one year and the annual interest rate is 4.35%, then the interest to be repaid is: 114.35=435 yuan. I suggest that you calculate the interest by yourself before lending.
loan means that banks, credit cooperatives and other institutions lend money to units or individuals who use money, and generally stipulate interest and repayment date.
loans in a broad sense refer to loans, discounts, overdrafts and other lending funds. Banks put the concentrated money and monetary funds out through loans, which can meet the needs of society to expand reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation.
interest refers to the remuneration paid by the borrower to the lender in order to obtain the right to use the funds, which is the use price of the capital (i.e. the loan principal) in a certain period. The loan interest can be calculated in detail by the loan interest calculator.
in civil law, interest is the legal fruit of principal.
repayment method
(1) equal repayment of principal and interest: that is, the sum of the principal and interest of the loan adopts a monthly equal repayment method. Housing provident fund loans and commercial personal housing loans of most banks have adopted this method. This way, the monthly repayment amount is the same;
(2) repayment of equal principal: that is, a repayment method in which the borrower evenly distributes the loan amount to each installment (month) throughout the repayment period and pays off the loan interest from the previous trading day to the repayment day. In this way, the monthly repayment amount decreases month by month;
(3) Pay interest on a monthly basis and repay the principal at maturity: that is, the borrower will repay the loan principal in one lump sum on the loan maturity date (applicable to loans with a term of less than one year (including one year)), and the loan will bear interest on a daily basis and the interest will be repaid on a monthly basis;
(4) prepayment of part of the loan: the borrower can prepay part of the loan amount, usually 1, yuan or an integer multiple of 1, yuan. After repayment, the loan bank will issue a new repayment plan, in which the repayment amount and repayment period are changed, but the repayment method is unchanged, and the new repayment period shall not exceed the original loan period
(5) prepayment of all the loans: the borrower applies to the bank.
(6) Pay back as you borrow: the interest after borrowing is calculated on a daily basis, and the interest is calculated on a daily basis. You can settle the money in one lump sum at any time without penalty
How to calculate the annualized interest rate of the loan
1. Monthly interest rate: the interest calculated with a monthly interest period, and its calculation method is: monthly interest rate = annual interest rate ÷12 (month)
2. Daily interest rate: The daily interest rate is called the daily interest rate, which is calculated with a daily interest period. Its calculation method is: daily interest rate = annual interest rate ÷36 (days) = monthly interest rate ÷3 (days)
3. Annual interest rate: interest calculated in the form of a percentage of principal, and its calculation method is: annual interest rate = interest ÷ principal ÷ time × 1%
. Assuming that the income period of a financial product is a year and the yield is b, then the annualized interest rate r, The calculation method is r = (1b) a-1
5. The calculation formula of equal principal and interest is: [loan principal× monthly interest rate× (January interest rate) repayment months] ÷ [(January interest rate) repayment months-1]
6. average capital calculation formula: monthly repayment amount = (loan principal ÷.
loan interest rate = interest/time/principal 1%
The annual interest rate is generally% (percent), and the monthly interest rate is generally expressed as ‰ (thousandth); The daily interest rate is expressed as a few ten thousandths of the principal, which is usually called a few cents.
if the annual interest rate of 6.5% is 6 cents and 5%, and the principal of 1, yuan is taken as an example, the annual interest is 65 yuan.
According to the formula, interest = principal interest rate
If you substitute it into the data, you can get the following formula:
Interest =16.5%=65 yuan (yuan)
Extended information:
Compared with other financing methods, the main disadvantages of bank loans are:
Sometimes it may be impossible to run for one year
2. The loan period is relatively short, and long-term investment rarely receives money.
3. The loan amount is relatively small, so it is difficult to solve all the funds needed for enterprise development through banks. Especially in the early stage of starting a business, the loan risk is very high, and it is difficult to obtain bank loans.
bank loan tips:
Find the floating interest rate and find the lowest loan cost: Due to the different pricing strategies of financial products, the same loan type has different interest rates in different banks. In addition to choosing the interest rate level, other factors must be considered, such as whether the loan must pay the handling fee, whether to evaluate the collateral and other factors that may lead to increased costs.
the difference can reach 1, yuan for different repayment methods: banks provide a variety of flexible loan repayment methods, and there are two commonly used methods-"average monthly repayment" and "equal monthly principal repayment". The difference in monetary cost expenditure can reach tens of thousands of yuan for different repayment methods.