If the user chooses floating interest rate, the loan interest rate is also LPR+ basis point, but because LPR will change, the interest will also change, and the interest is floating at this time.
For users, it is ok to choose fixed interest rate or floating interest rate. The two interest rates have their own advantages and disadvantages, and there is no distinction between good and bad.
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 lending rate
The decisive factors of bank loan interest are:
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.
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.
Supply and demand of loan 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.
Banks can use product interest method and transaction interest method to calculate interest.
The product interest method accumulates the account balance daily according to the actual number of days, and multiplies the accumulated product by the daily interest rate to calculate the interest. The interest-bearing formula is: interest = accumulated interest-bearing products × daily interest rate, where accumulated interest-bearing products = total daily balance.
The interest calculation method calculates interest one by one according to the preset interest calculation formula: interest = principal × interest rate × loan term:
If the interest-bearing period is a whole year (month), the interest-bearing formula is: interest = principal × year (month )× year (month) interest rate.
If the interest period has a whole year (month) and a number of days, the interest formula is: interest = principal × number of years × annual (month) interest rate+principal × number of days × daily interest rate.
At the same time, banks can choose to convert the interest period into actual days to calculate interest, that is, 365 days per year (366 days in leap years), and each month is the actual number of days in the Gregorian calendar of the current month. The interest calculation formula is: interest = principal × actual days × daily interest rate.