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 loan interest?
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 loan interest?
The calculation formula of loan interest is: principal × interest rate × loan term. The loan interest rate agreed by both parties shall not exceed four times the one-year loan market quotation when the contract is established. Interest within this range is protected by law.
legal ground
Article 680 of the Civil Code of People's Republic of China (PRC)
It is forbidden to lend at high interest rate, and the lending rate shall not violate the relevant provisions of the state.
If there is no agreement on the payment of interest in the loan contract, it shall be deemed that there is no interest.
If the loan contract does not specify the payment method of interest, and the parties cannot reach a supplementary agreement, the interest shall be determined according to the local or the parties' trading methods, trading habits, market interest rates and other factors;
Loans between natural persons are regarded as interest-free.
Article 25 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases.
If the lender requires the borrower to pay interest at the interest rate agreed in the contract, the people shall support it, except that the interest rate agreed by both parties exceeds four times the listed interest rate of the one-year loan market when the contract is established.
The "one-year loan market quotation" mentioned in the preceding paragraph refers to the one-year loan market quotation issued monthly by the National Interbank Funding Center authorized by the People's Bank of China from August 20th, 20th, 20th19th.
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