The loan interest rate can also be called the benchmark deposit and loan interest rate, which refers to the loan interest rate issued by the central bank, namely the People's Bank of China, to major commercial banks. This is a mandatory interest rate. Its main function is to facilitate the central bank to adjust the monetary policy of the market economy and the operation of the social and financial system. After the People's Bank of China released the benchmark deposit and loan interest rate to commercial banks, commercial banks will determine the loan interest rate according to this benchmark deposit and loan interest rate. If the country raises the benchmark interest rate for deposits and loans, it will lead to an increase in credit costs, a decrease in social mobility, credit contraction and a slowdown in national economic development.
Loan interest refers to the reward that the lender gets from the borrower for lending monetary funds, and it also belongs to the price that the borrower needs to pay for using the funds. The interest rate of the loan contract itself is determined by the lender's bank or other financial institutions, and both parties to the loan can only negotiate within the upper or lower limit of the interest rate 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 expires, and vice versa. The benchmark loan interest rate generally refers to the guiding loan interest rate issued by the central bank to commercial banks. At present, the benchmark loan interest rate of the central bank is:
1. If the short-term loan is within 1 year (inclusive), the benchmark loan interest rate is 4.35%;
2. The medium and long-term loan is 1-5 years (inclusive), and the benchmark interest rate of the loan is 4.75%; For loans with a term of more than 5 years, the benchmark loan interest rate is 4.90%;
3. The loan period of individual housing provident fund is less than 5 years (inclusive), and the benchmark interest rate of the loan is 2.75%;
The loan interest is calculated as follows:
1, interest calculation formula: interest = principal × interest rate× deposit term;
2. If the interest-bearing period is a whole year (month), the interest-bearing formula is: interest = principal × year (month )× year (month) interest rate;
3. If the interest period is a whole year (month) and the number of days is odd, the interest formula is: interest = principal × number of years (months) × annual (month) interest rate+principal × odd days × daily interest rate.
Loan repayment method:
1. Equal repayment of principal and interest: that is, the sum of loan principal and interest is repaid by equal monthly repayment. Most banks have adopted this method for housing provident fund loans and commercial personal housing loans. In this way, the monthly repayment amount is the same;
2. Matching principal repayment: a repayment method in which the borrower repays the loan in installments (months) and 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;
3. Pay interest and repay the principal on a monthly basis: that is, the borrower repays the loan principal in one lump sum on the maturity date of the loan [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;
4. 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, which is generally an integer multiple of 65,438+0,000 or 65,438+0,000. After repayment, the lending bank will issue a new repayment plan, in which the repayment amount and repayment period change, but the repayment method remains unchanged, and the new repayment period shall not exceed the original loan period.
5. 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 loan bank will terminate the borrower's loan and handle the corresponding cancellation procedures.
6. Pay back as you borrow: interest after borrowing is calculated on a daily basis, and interest is calculated on a daily basis. You can pay the money in one lump sum at any time without paying a fine.