What is the benchmark expected annualized interest rate? The benchmark expected annualized interest rate is the expected annualized interest rate with universal reference function in the financial market, and other expected annualized interest rates or financial asset prices can be determined according to the benchmark expected annualized interest rate level. The benchmark expected annualized interest rate is one of the important prerequisites for the marketization of the expected annualized interest rate. Under the condition of marketization of expected annualized interest rate, financiers measure the financing cost, investors calculate the expected annualized expected return of investment, and the macro-control of management objectively needs a universally recognized benchmark expected annualized interest rate level as a reference. Therefore, in a sense, the benchmark expected annualized interest rate is the core of the formation of the expected annualized interest rate marketization mechanism.

Central bank loan benchmark expected annualized interest rate table

What is the expected annualized interest rate of bank loans? The expected annualized interest rate of a loan refers to the ratio of the interest amount to the principal amount during the loan period. The expected annualized interest rate in China is managed by the People's Bank of China. The expected annualized interest rate of bank loans refers to the benchmark expected annualized interest rate set by the People's Bank of China, and the actual contract expected annualized interest rate can fluctuate within a certain range based on the benchmark expected annualized interest rate.

Expected annualized interest rate formula of bank loans

Loan interest = loan amount x loan date x loan expected annualized interest rate

Generally, banks do not pay interest with the principal, but use the rhythm of quarterly interest collection to calculate interest, that is, 2 1 day of each quarter is the interest settlement date, and interest is calculated until the 20th, depending on the number of days in this quarter.

The relationship between the expected annualized interest rate of bank loans and the benchmark expected annualized interest rate

The expected annualized interest rate displayed on the electronic screen of each bank outlet and the expected annualized interest rate of loans published on the bank website are the benchmark expected annualized interest rate of the central bank. However, the expected annualized interest rate of specific loan execution is not necessarily the benchmark expected annualized interest rate. The expected annualized interest rates of different banks, different loan products and different borrowers may be different. It is not illegal for the expected annualized interest rate of loans executed by banks to be higher than the benchmark expected annualized interest rate. Except for credit cooperatives, the central bank has no upper limit on the expected annualized interest rate of most commercial banks. On the contrary, there is a lower limit on the expected annualized interest rate of loans.

Except for loans stipulated by the policy, the lower limit of the expected annualized interest rate of loans of financial institutions is 0.9 times of the benchmark expected annualized interest rate. Although there is no upper limit on the expected annualized interest rate of bank loans, banks have the obligation to inform borrowers. Borrowers have the right to know the expected annualized interest rate of loans they apply for, and banks will only issue loans if the borrowers agree and accept them.