1. Loan refers to a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and on the condition that they must be returned. A simple and popular understanding is to borrow money with interest.
Second, banks put concentrated money and monetary funds out in the form of loans, which can meet the needs of expanding social reproduction and promoting economic development; At the same time, banks can also obtain loan interest income and increase their own accumulation.
3. Interest refers to the remuneration paid by the borrower to the lender for obtaining the right to use the funds, which is the use price of the funds in a certain period (i.e. the loan principal). The loan interest can be calculated in detail by the loan interest calculator. In civil law, interest is the legal fruit of principal.
Four. Repayment method (1) Equal principal and interest repayment method: equal repayment every month, the sum of loan principal and interest. Most banks have adopted this method for housing provident fund loans and commercial personal housing loans. So the monthly repayment amount is the same;
(2) average capital repayment method: that is, the borrower distributes the loan amount to each period (month) evenly throughout the repayment period 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) Paying interest and principal on a monthly basis: 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;
(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, 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.
(5) prepayment of all loans: that is, the borrower can repay all the loan amount in advance when applying to the bank, and the loan bank will terminate the borrower's loan at this time after repayment and handle the corresponding cancellation procedures.
(6) Pay back as you borrow: interest is calculated on a daily basis after borrowing, and interest is calculated on a daily basis. You can pay the money in one lump sum at any time without any penalty.
Verb (abbreviation for verb) loan interest rate
(1) interest rate
The proportion of interest in the total loan funds within a certain period is the manifestation of the loan price. That is, interest rate = interest amount. The interest rate of loan principal is divided into daily interest rate, monthly interest rate and annual interest rate. The lender determines the loan interest rate with the lending bank according to the benchmark interest rate and interest rate floating space announced by relevant laws and regulations of various countries.
(2) benchmark interest rate
The benchmark interest rate is a universal reference interest rate in the financial market, and other interest rates or financial asset prices are determined by this benchmark interest rate level. Benchmark interest rate is one of the important prerequisites for interest rate marketization. Under the condition of interest rate marketization, financiers measure financing costs, investors calculate investment returns, and management regulates macroeconomics. Objectively, a universally recognized benchmark interest rate level is needed as a reference. Therefore, in a sense, the benchmark interest rate is the core of the formation of interest rate marketization mechanism. Simply put, you usually deposit money in the bank and he gives you interest. The greater the benchmark interest rate, the more interest; The smaller the benchmark interest rate, the smaller the interest.