Legal subjectivity:

The benchmark interest rate for deposits and loans is the loan guidance interest rate issued by the central bank to commercial banks. It is one of the monetary policies used by the central bank to regulate the operation of the social economy and financial system. Commercial banks will formulate a combination of deposit interest rates based on this benchmark interest rate. Raising the benchmark interest rate means shrinking credit, reducing social mobility, increasing credit costs, and slowing economic development. vice versa. Legal objectivity:

Article 13 of the "General Principles of Loans" The lender shall determine the interest rate for each loan in accordance with the upper and lower limits of loan interest rates stipulated by the People's Bank of China, and state this in the loan contract. Article 14 of the "General Principles of Loans" The lender and the borrower shall calculate or pay interest on schedule in accordance with the loan contract and the relevant interest calculation regulations of the People's Bank of China. When the extension period of the loan plus the original period reaches the new interest rate grade, the loan interest will be calculated and collected based on the new term grade interest rate from the date of extension. Overdue loans will be charged penalty interest in accordance with regulations.