The calculation formula of loan interest is loan interest = principal x time x interest rate.
Loan interest refers to the reward that the lender gets from the borrower for issuing monetary funds, and it is also the price that the borrower must pay for using the funds.
Bank loan interest rate refers to the ratio of interest amount to principal amount during the loan period. The interest rate of loan contracts with banks and other financial institutions as lenders can only be determined through consultation within the upper and lower interest rate limits stipulated by the People's Bank of China.
If the loan interest rate is high, the repayment amount of the borrower will increase after the loan term, otherwise it will decrease.
There are three factors that determine loan interest: loan amount, loan term and loan interest rate.
How to calculate the interest on bank loans?
Calculation method of bank loan interest: Generally, compound interest is calculated on a monthly basis. There are two ways to repay by installments: one is equal principal and interest, and the other is average capital.
The specific formula is as follows:
Matching principal and interest: monthly repayment amount = [loan principal × monthly interest rate× (1interest rate) repayment months ]≤[( 1 interest rate) repayment months].
Average fund: monthly repayment amount = (loan principal/repayment months) (principal-accumulated amount of repaid principal) × monthly interest rate.
Generally speaking, the interest rate formula for calculating interest mainly includes:
Monthly interest rate = annual interest rate/12, daily interest rate = annual interest rate /360.
According to different repayment methods, the algorithm of interest is also different, but the basic algorithm is as follows:
Current month loan interest = the monthly interest rate of the remaining loan principal last month.
Principal paid in the current month = repayment amount in the current month-loan interest in the current month.
Last month's remaining principal = total loan-accumulated repaid principal.
Equal principal and interest repayment method: that is, the sum of loan principal and interest is repaid in equal amount every month. Most banks have adopted this method for housing provident fund loans and commercial personal housing loans. So the monthly repayment amount is the same.
Average capital repayment method: that is, the borrower repays the loan in every installment (month) during the whole repayment period, and at the same time pays off the loan interest from the previous trading day to the repayment date. In this way, the monthly repayment amount decreases month by month.
Pay interest on a monthly basis, and repay the principal at maturity: that is, the borrower repays 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 bears interest on a daily basis, and the interest is repaid on a monthly basis.
Repay part of the loan in advance: that is, the borrower can repay part of the loan amount in advance when applying to the bank. The general amount is an integer multiple of 10000 or 10000. After repayment, the lending bank will issue a new repayment plan, and the repayment amount and repayment period will change, but the repayment method will remain unchanged, and the new repayment period shall not exceed the original loan period.
Repay all the loans in advance: that is, the borrower can repay all the loan amount in advance when applying to the bank. After repayment, the lending bank will terminate the borrower's loan and handle the corresponding cancellation procedures.
Borrow and pay back: interest is calculated daily after borrowing, and interest is calculated daily. You can pay the money in one lump sum at any time without any penalty.
How to calculate the interest on bank loans?
The calculation of bank loan interest, except for 360 days, is not 365 days: for the convenience of calculation;
There are 12 months every year, and there are only 30 days in a month according to 360 days.
The calculation of bank loan interest, except for 360 days, is not 365 days: for the convenience of calculation; There are 12 months every year, and there are only 30 days in a month according to 360 days.
：
There are two algorithms for bank loan interest: 360 days and 365 days;
The annual interest rate of general loans is converted into daily interest rate according to 360 days; The daily loan interest rate is converted into the annual loan interest rate by 365 days.
Article 3 of the Notice of the People's Bank of China on the Calculation and Settlement of RMB Deposit and Loan Interest stipulates that the daily interest rate shall be calculated at the annual interest rate of /360.
The Notice of the People's Bank of China on Adjusting the Conversion Standard of Daily Interest Rate of Bond Repurchase stipulates: "The daily interest rate shall be uniformly converted by dividing the annual interest rate by 365 days. If it is not divisible, four digits shall be reserved after the decimal point, and the fifth digit shall be rounded off. "
The Standard for People's Handling of Enforcement Cases promulgated by the Supreme People's Executive Board on 20 17 stipulates in Item (3) of Article 161 of the book: "If the non-performance period exceeds 1 year, the interest shall be calculated at the annual rate of the benchmark interest rate for the same period every full year, and the interest shall be calculated at the daily rate of the benchmark interest rate for the remaining period.
The daily interest rate is calculated by dividing the annual interest rate of the benchmark loan interest rate by 365 days. "The two notices of the People's Bank of China have two ways to calculate daily interest, which lies in the way of interest settlement.
In the Notice of the People's Bank of China on the Calculation and Settlement of Interest on RMB Deposits and Loans, the businesses specified in the notice are settled quarterly. In the Notice of the People's Bank of China on Adjusting the Conversion Standard of Interest Rate on Bond Repurchase Day, for the inter-bank bond market, the interest period is calculated according to the actual days of bond repurchase.
What is the difference? According to the quarterly interest settlement method, there are four quarters every year. The quarterly interest rate is calculated by multiplying the monthly interest rate by 3, and the monthly interest rate is calculated by the annual interest rate/12. The interest rate is the same every month and quarter, but we know that the number of days in each quarter is different.
If the daily interest rate is calculated according to the annual interest rate /365, then the monthly interest rates of 28, 29, 30, 3 1 are different, and the interest rates of each quarter are different, which will lead to confusion in interest rate calculation.
After calculating the daily interest rate with an annual interest rate of /360 and the monthly interest rate with an annual interest rate of/12, the interest rate can be guaranteed to be the same every quarter and every month, thus avoiding the confusion visible to the naked eye. However, the method of calculating interest according to the actual number of days does not have the above problems. In order to ensure that the annual interest rate is the same as the daily interest rate, the interest rate is calculated at the annual interest rate of /365.
After comparison, we found it difficult to say whether to divide by 365 or 360. Whether it is correct or not depends on the interest settlement method, and the calculation method that matches the real transaction can be said to be correct. In business execution, interest is calculated on a daily basis, so the daily interest rate is calculated by dividing the annual interest rate by 365.
How to calculate the interest on bank loans?
1. How to calculate the loan interest of the bank?
Bank loan refers to an economic behavior that banks lend funds to people in need of funds at a certain interest rate according to national policies and return them within the agreed time limit. Generally, you need a guarantee, a house mortgage, proof of income and good personal credit information before you can apply. Moreover, in different countries and different development periods of a country, the types of loans classified according to various standards are also different. For example, industrial and commercial loans in the United States mainly include ordinary loan limits, working capital loans, standby loan commitments, and project loans. In Britain, industrial and commercial loans mostly take the form of discounted bills, credit accounts and overdraft accounts. Calculation method of bank loan interest:
1, and the loan time is within 1 year (inclusive): interest = principal × loan time × 4.35%;
2. Loan time 1 -5 years (including 5 years): interest = principal × loan time × 4.75%;
3. The loan time is more than 5 years: interest = principal × loan time ×4.9%.
Second, how to calculate the interest on bank loans to buy a house?
(1) is calculated by repayment method.
1, equal principal and interest method
Calculation formula: monthly repayment amount = monthly interest rate of principal [(65438+ 10 interest rate) n/[(65438+ 10 interest rate) n-1]; Where n represents the number of months of loan, and n represents the power of n, such as 240, representing the power of 240 (20 years and 240 months of loan); Monthly interest rate = annual interest rate/12; Total interest = monthly repayment amount-loan months-principal; After calculation, the monthly repayment amount is 5343.38 yuan (the same every month). The total repayment amount is128241.20 yuan, and the total interest amount is 58241.20 yuan.
2. The law of average capital
Calculation formula: monthly repayment amount = principal /n monthly interest rate of remaining principal; Total interest = monthly interest rate of principal (loan months/20.5); After calculation, the repayment amount in the first month is 6883.33 yuan (decreasing month by month, and the repayment amount in the last month is 2933.438+09 yuan). The total repayment amount is 1 177983.33 yuan, and the total interest amount is 477983.33 yuan.
3. Free repayment
Free repayment means that when you apply for a housing provident fund loan, the housing provident fund management party gives a repayment amount according to the amount and duration of your loan. In the future, on the premise that the monthly repayment amount is not lower than this repayment amount, you can freely arrange the repayment method of the monthly repayment amount according to your own economic situation.
(B) the method of determining the loan interest
1, provident fund loan
The interest rate of provident fund loans is 3.25%, and everyone likes low interest rates. However, the provident fund loan process is complex and the loan time is long, which will be restricted by many developers. In addition, it is very important that the amount of provident fund loans is limited.
2. Portfolio loan
Portfolio loan refers to the simultaneous use of provident fund loans and commercial loans. Part of the provident fund loan is implemented according to the interest rate of the provident fund loan, and part of the commercial loan is implemented according to the interest rate of the commercial loan. The interest rate of portfolio loans is higher than provident fund loans, but lower than commercial loans.
3. Commercial loans
Commercial loans are loans based on the benchmark interest rate issued by banks, and banks will fluctuate, with concessions and increases. This kind of loan is more common, but the disadvantage is that the loan interest rate is higher. The general commercial loan interest rate is 4.9%.
Third, the bank loan approval process
1, loan application
(1) Basic information of the borrower and guarantor;
(2) the financial report of the previous year approved by the financial department or accounting (auditing) firm, and the financial report of the previous period of applying for a loan;
(3) the correction of the original unreasonable loan;
(4) List of collateral and pledge, the consent certificate of the person who has the right to dispose of the collateral and pledge, and the relevant certificates that the guarantor intends to agree to guarantee;
(5) Project proposal and feasibility report;
(six) other relevant materials that the credit cooperatives think need to be provided;
2. Credit rating evaluation, in which credit cooperatives evaluate the credit rating of borrowers;
3, loan investigation, credit cooperatives to investigate the borrower's legitimacy, safety, profitability and so on;
4, loan approval, credit cooperatives according to the loan management system of loan separation and grading approval for loan approval;
5. Sign a contract, and the credit cooperative signs a loan contract with the borrower;
6, loans, credit cooperatives in accordance with the provisions of the loan contract loans;
7. Post-loan inspection: the credit cooperative conducts follow-up investigation and inspection on the borrower's performance of the loan contract and operation;
8. Loan repayment. When the loan expires, the borrower will repay the loan principal and interest in full and on time.
How to calculate the interest on bank loans?
How much is the interest on the bank loan?
At present, the bank loan interest rate is determined according to the fluctuation of the benchmark loan interest rate stipulated by the People's Bank of China. Different banks and products will have different interest rates.
At present, our loan interest rate is as follows: 4.85% for loans within 6 months (including 6 months).
Loans from six months to one year (including 1 year) 4.85%
One to three years (including three years) loan 5.25%
3 to 5 years (including 5 years) loan 5.25%
Loans with a term of more than five years are 5.40%. After the promulgation of Article 5, branches can further increase the down payment ratio and interest rate of the second home loan in cities where house prices are rising too fast according to the real estate control objectives and policy requirements of the local people's government. At present, all localities are studying and formulating relevant implementation rules, which can be implemented after being formulated and reported to the head office of the People's Bank of China for approval. Consistent with previous market expectations, in some cities where house prices have risen too fast, the down payment for second-home mortgage may be raised to 70%, and the interest rate may be raised to 1.3 times.
How much is the interest on the bank loan?
At present, the bank loan interest rate is determined according to the fluctuation of the benchmark loan interest rate stipulated by the People's Bank of China. Different banks and products will have different interest rates.
At present, our loan interest rate is as follows: 4.85% for loans within 6 months (including 6 months).
Loans from six months to one year (including 1 year) 4.85%
One to three years (including three years) loan 5.25%
3 to 5 years (including 5 years) loan 5.25%
Loans with a term of more than five years are 5.40%. After the promulgation of Article 5, branches can further increase the down payment ratio and interest rate of the second home loan in cities where house prices are rising too fast according to the real estate control objectives and policy requirements of the local people's government. At present, all localities are studying and formulating relevant implementation rules, which can be implemented after being formulated and reported to the head office of the People's Bank of China for approval. Consistent with previous market expectations, in some cities where house prices have risen too fast, the down payment for second-home mortgage may be raised to 70%, and the interest rate may be raised to 1.3 times.
How to calculate the interest of bank loans
1. Monthly interest rate: interest calculated on a monthly basis. The 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 and is calculated on a daily basis. The calculation method is: daily interest rate = annual interest rate ÷360 (days) = monthly interest rate ÷30 (days).
3. Annual interest rate: usually in the form of percentage of principal, interest is calculated annually. Calculation method: annual interest rate = interest ÷ principal ÷ time × 100%.
4. Annualized interest rate: refers to the interest rate at which the inherent rate of return of products is discounted to the whole year, which is quite different from the calculation method of annual interest rate. Assuming that the yield of a wealth management product is one year and the yield is B, the annualized interest rate R is calculated as R=( 1B)A- 1.
5. Calculation formula of equal principal and interest: [loan principal × monthly interest rate× (1interest rate) repayment months] ÷ repayment months [( 1 interest rate) repayment months-1]
6. Calculation formula of average fund: monthly repayment amount = (loan principal ÷ repayment months) (principal-accumulated amount of repaid principal) × monthly interest rate.
Extended information:
Bank loan refers to an economic behavior in which banks lend funds to people in need at a certain interest rate according to national policies and agree to return them within a specified time limit. Generally, you need a guarantee, a house mortgage, or proof of income, and your personal credit information is good before you can apply.
Moreover, in different countries and different development periods of a country, the types of loans classified according to various standards are also different. For example, industrial and commercial loans in the United States mainly include ordinary loan quotas, working capital loans, standby loan commitments, and project loans. In Britain, industrial and commercial loans are mostly in the form of discounted bills, credit accounts and overdraft accounts.
So much for the introduction of how to calculate interest on ICBC loans.