1. What does Agricultural Bank of China LPR conversion mean?
Agricultural Bank of China LPR conversion means that customers can convert the pricing based on the "central bank benchmark interest rate" stipulated in the original loan contract to the "loan market quoted interest rate" (LPR)" is the pricing benchmark plus points (if the loan term is 5 years or less, it is mainly formed by adding points to the 1-year LPR, and if the loan term is more than 5 years, it is mainly formed by adding points to the LPR of more than 5 years, and the points can be negative) , the added point value will be fixed during the remaining term of the contract, and the re-pricing cycle and re-pricing date can be negotiated; it can also be converted to a fixed interest rate, and the interest rate level will be fixed during the remaining term of the contract. The interest rate pricing basis can only be converted once and cannot be converted again after conversion.
LPR is the loan market quoted interest rate (Loan PrimeRate, LPR). It is determined by a representative quoting bank based on the bank's loan interest rate for the best customers, based on the open market operating interest rate (mainly refers to the medium-term lending facility interest rate). ) is quoted by adding points, and is a basic loan reference interest rate calculated and published by the National Interbank Funding Center authorized by the People's Bank of China. Each financial institution should mainly refer to the LPR for loan pricing. At present, LPR includes two varieties: 1-year term and 5-year term or more. LPR has a high degree of marketization and can fully reflect the supply and demand of funds in the credit market. Using LPR for loan pricing can promote the formation of market-oriented loan interest rates and improve the transmission efficiency of market interest rates to credit interest rates.
On August 12, 2020, five major state-owned banks, ICBC, China Construction Bank, Agricultural Bank of China, Bank of China and Postal Savings Bank of China, simultaneously issued announcements that they would start from August 25 on personal housing loans within the scope of batch conversion. The pricing method will be uniformly adjusted to LPR (Loan Prime Rate) in accordance with relevant rules.
1. The scope of Agricultural Bank of China’s LPR pricing benchmark conversion. The scope of this existing loan pricing benchmark conversion is: those that have been issued before January 1, 2020 and those that have signed contracts but have not yet been issued, with reference to the existing floating amount of the central bank’s benchmark interest rate pricing. Interest rate loans (excluding provident fund personal housing loans). Fixed-rate loans priced at the central bank's benchmark interest rate are not within the scope of this conversion. Loans with a maturity date before August 31, 2020 may not be converted; existing floating rate loans that are in the last repricing cycle may not be converted.
2. Agricultural Bank of China’s LPR pricing basis conversion rules Customers can convert the pricing based on the “central bank benchmark interest rate” stipulated in the original loan contract to the “loan market quoted rate (LPR)” as the pricing basis plus points (loan term The loan period of 5 years and less is mainly formed by referring to the 1-year LPR plus points. The loan period of more than 5 years is mainly formed by referring to the 5-year LPR plus points. The bonus points can be negative). The value of the bonus points is fixed during the remaining term of the contract. The repricing cycle and repricing date can be negotiated and re-scheduled; it can also be converted to a fixed interest rate, and the interest rate level will be fixed during the remaining term of the contract. The interest rate pricing basis can only be converted once and cannot be converted again after conversion.
The pricing basis for existing floating-rate loans is converted to LPR. Except for commercial personal home purchase loans, the point value or interest rate level of other loans can be determined through negotiation with the original loan handling bank. The point-added value when converting a commercial personal home purchase loan is equal to the difference between the latest execution interest rate level of the original contract and the LPR of the corresponding period released in December 2019. From the time of conversion to the first repricing date thereafter (exclusive), the execution interest rate level after conversion is equal to the most recent execution interest rate level of the original contract, that is, the sum of the LPR and the points added value for the corresponding period in December 2019. Thereafter, starting from the first repricing date, on each interest rate repricing date, the interest rate level will be recalculated and determined based on the LPR and point addition value of the corresponding period in the most recent month. The minimum repricing cycle for commercial personal home purchase loans is one year.
3. Channels and procedures for Agricultural Bank of China’s LPR pricing benchmark conversion. This conversion of existing personal loan pricing benchmarks is mainly handled through self-service channels such as Agricultural Bank of China’s mobile banking, online banking and branch super counters; it is not possible to use the above channels. For self-service processing, you can handle it at the counter of an Agricultural Bank of China branch or contact the original loan handling bank after the counter processing channel is opened. For matters regarding the conversion of the pricing basis for corporate loans, please contact the original loan handling bank. (1) When the pricing basis conversion of commercial personal home purchase loans (including personal commercial home loans) is processed through self-service channels, the pricing method can choose floating interest rate or fixed interest rate.
If you choose a floating interest rate, you can renegotiate the loan interest rate floating method (optional "year to month to day" or "January 1 of each year"), and other loan elements shall be consistent with the original contract. If there are other matters that need to be negotiated, they can be handled at the branch counter or contact the original loan handling bank.
After the conversion, the current base interest rate plus bank float will be changed to the LPR plus basis point loan interest rate calculation method. Therefore, after the bank conversion, what we can see is the change in future loan interest rates. For us, the LPR-type loan interest calculation method has more room for operation. If we choose this method, we may pay more interest in the future than before, or less than before.
2. What are the credit signing outlets?
Because there is a loan, if you are in a certain town, this is your contract signing outlet
3. What does a credit signing outlet mean?
Loan disbursement outlets.
The signing of a loan means that for a loan that has been approved, the borrower and other relevant parties (including the mortgagor and the pledger, etc.) should be notified in a timely manner to confirm the signing time and sign the "Personal Auto Loan" Loan Contract" and related guarantee contracts. The loan contract should comply with legal provisions and clearly stipulate the good faith commitments of all parties and the purpose of the loan funds, payment objects, payment amounts, payment conditions, payment methods, etc.
IV. What are the Guidance and Signing Outlets of Bank of China?
The Guidance and Signing Outlets of Bank of China refer to bank branches that handle credit business. According to the query related information, the signing branch refers to the bank branch institution that handles credit business, which also refers to the place where the loan contract is signed.