The bank loan interest rate is 0.27%, which is very low in figures, but the key is which repayment method.
If you pay interest first, it is really low interest. However, if the repayment method of equal interest rate is adopted, then the principal you use in 1 month is your total loan fund, but in 1 month, you have to repay the principal for one month, and then you have to subtract the principal for another month. Until the last month, you only owe a little principal, but your repayment interest remains unchanged.
Interest is the use fee of money in a certain period of time, and it refers to the reward that money holders (creditors) get from borrowers (debtors) for lending money or monetary capital. Including deposit interest, loan interest and interest generated by various bonds. Under the capitalist system, the source of interest is the surplus value created by hired workers. The essence of interest is a special transformation form of surplus value and a part of profit.
How much interest is legal to borrow?
1. If the annual interest rate does not exceed 24%, it is legal and valid. If the annual interest rate agreed by both parties does not exceed 24%, and the lender requires the borrower to pay interest at the agreed interest rate, the people's court shall support it.
2. If the annual interest rate exceeds 24% but does not exceed 36%, it shall be decided by the parties through consultation. Private lending with an annual interest rate of 24% ~ 36% is a natural debt. If a lawsuit is filed, the court will not protect them, but the parties are willing to perform it automatically and the court will not object. The borrower cannot demand repayment of the interest paid.
3. If the annual interest rate exceeds 36%, part of it is invalid. The interest rate agreed by both parties exceeds the annual interest rate of 36%, and the interest agreement exceeding the part is invalid. The people's court shall support the borrower's request to the lender to return the interest paid at an annual rate exceeding 36%.
Can usury not be repaid?
Usury cannot be repaid, only the interest higher than the statutory maximum interest rate of private lending does not need to be repaid, and the rest of the arrears still need to be repaid. The maximum loan interest rate of private loans is 24%, and the loan interest rate below this rate is protected by law.