What's the interest of bank loans

The calculation formula of bank loan interest is: interest = principal interest rate, loan term, and the annual interest rate of bank loans is about 4.5%, so the interest of loans for 5, years is 5, times 4.5% = 2,25 yuan.

So the interest on a bank loan of 5, yuan a year is about 2, yuan. However, when applying for loan interest in a bank, it is often not calculated in this way. After the loan, you can apply for repayment in installments, so the interest generated in each installment will be much lower.

interest is the use fee of money in a certain period of time, which refers to the reward that the money holder (creditor) gets from the borrower (debtor) for lending money or monetary capital. Including deposit interest, loan interest and interest incurred by various bonds.

1. Money other than the principal due to deposits and loans (different from' principal').

2. The abstract point of interest refers to the value-added amount brought by monetary funds when they are injected into the real economy and returned. In a less abstract sense, interest generally refers to the remuneration paid by the borrower (debtor) to the lender (creditor) for using the borrowed currency or capital. Also known as the symmetry of sub-fund and parent fund (principal).

the calculation formula of interest is: interest = principal × interest rate× deposit period (that is, time).

Interest is the reward obtained by the owner of the fund for lending the fund, which comes from a part of the profits formed by the producer using the fund to play its operational functions. Refers to the value-added amount brought by monetary funds when they are injected into the real economic sector and returned.

Its calculation formula is: interest = principal × interest rate × deposit period ×1%

3. Classification of bank interest

According to the nature of banking business, it can be divided into two types: bank interest receivable and bank interest payable.

Interest receivable refers to the reward that the bank obtains from the borrower by lending the funds; It is the price that borrowers must pay for using funds; It is also part of the bank's profits.

Interest payable refers to the remuneration paid to depositors by banks for absorbing deposits from depositors; It is the price that banks must pay to absorb deposits, and it is also part of the bank's cost.

how to calculate the interest of bank loans

1. simple interest method simple interest method refers to that during the loan period, interest is only calculated according to the loan principal on the agreed interest collection date, and the interest not received in the previous period is not used as the basis for interest calculation in this period. China's commercial banks all use simple interest method to collect loan interest. The calculation formula is: interest = loan principal × loan daily interest rate × loan days

2. Compound interest method The compound interest method means that if the interest of the previous period is not received on the agreed interest collection date within the loan period, the interest of the previous period should be included in the principal as a new interest base, and the interest will be collected on this basis. Compound interest is commonly known as "rolling interest". The calculation formula is as follows: the sum of principal and interest = loan principal ×(1 interest rate) n-th power interest = principal× [(1 interest rate) n-th power 1]

3. Discount method refers to the method that commercial banks deduct interest from the principal in advance when issuing loans, and the borrower pays the principal and interest in one lump sum at maturity. Commercial banks usually use this method when discounting commercial bills for customers. The calculation formula is: interest = loan principal (or face value) × loan days× discount date interest rate

4. Principal and interest installment repayment method refers to a method of repaying principal and interest regularly within the loan period. This law is applicable to loan projects with large amount and long term, such as housing mortgage loans. There are two different options for commercial banks to adopt the principal and interest installment repayment method.

what's the interest on the bank loan?

the interest rate of bank loans depends on the specific bank. The benchmark interest rate of RMB loans is 4.35% for loans within six months (including six months); The annual interest rate of loans from six months to one year (including one year) is 4.35%; The annual interest rate of loans for one to three years (including three years) is 4.75%; The annual interest rate of loans for three to five years (including five years) is 4.75%; The annual interest rate of loans for more than five years is 4.9%. Banks adjust to a certain extent according to the actual situation, and the floating range varies from bank to bank.

Legal basis: Article 17 of the Implementation Measures for Special Tax Adjustment (for Trial Implementation)

If the tax authorities make special tax adjustments to enterprises according to the provisions of the Income Tax Law and its implementation regulations, they shall pay additional interest on the enterprise income tax levied after January 1, 28. (1) The interest-bearing period begins on June 1st of the year following the tax year to which the tax belongs and ends on the date when the tax is paid back (prepaid). (2) The interest rate shall be calculated according to the benchmark interest rate of RMB loans of the People's Bank of China (hereinafter referred to as the "benchmark interest rate") implemented on December 31st of the tax year to which the tax belongs, plus 5 percentage points, and the daily interest rate shall be converted into 365 days a year. (3) If an enterprise provides the materials of the same period and other relevant materials in accordance with the provisions of these Measures, or if an enterprise is exempted from preparing the materials of the same period in accordance with the provisions of Article 15 of these Measures, but provides other relevant materials according to the requirements of the tax authorities, it may only calculate the interest at the benchmark interest rate. An enterprise is exempted from preparing data for the same period in accordance with the provisions of Item (1) of Article 15 of these Measures, but after investigation by the tax authorities, its actual related transaction amount reaches the standard that data for the same period must be prepared, and the tax authorities charge interest on the supplementary tax, and the provisions of Item (2) of this article shall apply. (4) The interest charged according to the provisions of this article shall not be deducted when calculating the taxable income.