According to the policy of camp reform, "purchased loan services" cannot be deducted from the output tax, and at the same time, it is stipulated that the input tax such as investment and financing consulting fees, handling fees and consulting fees directly related to loans paid by taxpayers to lenders by accepting loan services cannot be deducted from the output tax. The directly related expenses such as interest expenses paid by enterprises need to pay 6% value-added tax after the reform of the camp, which cannot be deducted from the input.

Loan interest refers to the reward that the lender gets from the borrower for issuing monetary funds, and it is also the price that the borrower must pay for using the funds. Bank loan interest rate refers to the ratio of interest amount to principal amount during the loan period. The interest rate of loan contracts with banks and other financial institutions as lenders can only be determined through consultation within the upper and lower limits of interest rates stipulated by the Bank of China.

If the loan interest rate is high, the repayment amount of the borrower will increase after the loan term, otherwise the bridge crossing will be reduced. There are three main factors that determine loan interest: loan amount, loan term and loan code interest rate.