What is the base interest rate for commercial loans?
According to the announcement of the Central Bank:
The central bank’s loan base interest rate:
(1) Short-term loans: the adjusted interest rate within one year (including one year) is 4.35.
(2) Medium and long-term loans: the adjusted interest rate for one to five years (including five years) is 4.75; the adjusted interest rate for more than five years is 4.90.
(3) Individual Housing provident fund loan: the adjusted interest rate for less than five years (including five years) is 2.75; the adjusted interest rate for more than five years is 3.25.
Agricultural Bank of China, short-term loans (within six months, including six years) The loan interest rate for six months to one year (inclusive) is 4.35; the loan interest rate for six months to one year (inclusive) is 4.35. The loan interest rate for one to three years (inclusive) is 4.75, and the loan interest rate for more than five years is 4.9.
If it is a provident fund loan, the interest rate for loans less than five years (including five years) is 2.75; the interest rate for loans over five years is 3.25.
Loan interest rate is the interest rate charged by banks and other financial institutions to borrowers when they issue loans. It is mainly divided into three categories: the central bank's loan interest rate to commercial banks; the commercial bank's loan interest rate to customers; and the interbank lending rate.
The factors that determine bank loan interest are:
1. Bank costs. Any economic activity requires cost-benefit comparison. There are two types of bank costs: borrowing costs - prepaid interest on borrowed funds; additional costs - expenses incurred in normal business.
2. Average profit rate. Interest is a subdivision of profit. Interest must be less than the profit rate. The average profit rate is the highest limit of interest.
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What is the loan interest rate of the People's Bank of China?
The latest benchmark loan interest rate of the People's Bank of China: 1. Short-term loans : Within six months (including six months) is 4.35, from six months to one year (including one year) is 4.35;
2. Medium and long-term loans: one to three years (including three years) ) is 4.75, three to five years (including five years) is 4.75, and more than five years is 4.90;
3. Personal housing provident fund loan: less than five years (including five years) is 2.75, five years The above is 3.25.
Bank loan benchmark interest rates
As of September 2020, taking China Construction Bank as an example, the bank loan benchmark interest rates are as follows:
According to the official website of the People's Bank of China, From October 24, 2015, the current RMB interest rate will be adjusted to: 4.35 within one year (including one year), 4.75 from one to five years (including five years), and 4.90 for more than five years.
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.
Extended information:
On August 25, 2015, the People's Bank of China decided to lower the benchmark interest rates for RMB loans and deposits of financial institutions from August 26, 2015 to further reduce Corporate financing costs. Among them, the one-year loan benchmark interest rate of financial institutions was reduced by 0.25 percentage points to 4.6; the one-year deposit benchmark interest rate was reduced by 0.25 percentage points to 1.75; other loan and deposit benchmark interest rates, and personal housing provident fund deposit and loan interest rates were adjusted accordingly.
.At the same time, the upper limit of interest rate fluctuations for time deposits with a maturity of more than one year (excluding one year) is relaxed, and the upper limit of interest rate fluctuations for demand deposits and time deposits with a maturity of less than one year remains unchanged. Since September 6, 2015, the RMB deposit reserve ratio of financial institutions has been lowered by 0.5 percentage points to maintain reasonable and sufficient liquidity in the banking system and guide steady and moderate growth of money and credit.
At the same time, in order to further enhance the ability of financial institutions to support "agriculture, rural areas and farmers" and small and micro enterprises, the reserve ratio of rural financial institutions such as county rural commercial banks, rural cooperative banks, rural credit cooperatives, and village and town banks will be additionally reduced. 0.5 percentage points.
The reserve ratio of financial leasing companies and automobile finance companies will be lowered by an additional 3 percentage points to encourage them to play their role in expanding consumption.