The higher the interest rate, the more interest, right?
The higher the interest rate, the more the loan interest. When the loan principal and loan term are the same, the higher the loan interest rate, the more loan interest will be generated. Moreover, because the interest rates of most loan products are evaluated according to the credit qualification conditions of users, the better the credit qualification conditions of users, the lower the loan interest rate will be.
The loan interest rate of loan products is usually annual interest rate, monthly interest rate and daily interest rate. These interest rates are also the higher the loan interest rate, the more interest will be generated. If users apply for daily loan products, it is best to convert the loan interest rate into annual interest rate to judge whether the loan interest rate is legal. When users apply for loans, the loan interest rate is unacceptable, so they can stop applying for loans.
The loan interest rate is not fixed. Lending institutions will evaluate users' loan accounts from time to time. As long as the user's comprehensive credit score is improved, the system may reduce the loan interest rate after the evaluation is completed. When the user's comprehensive credit score drops, the loan interest rate will even increase.
Is the loan interest rate high or low?
The level of loan interest rate will also have a certain impact on life. For example, if the borrower needs to rely on a loan.
To pay the living expenses, the loan interest rate will directly affect the borrower's quality of life and repayment ability. In addition, the change of loan interest rate will also affect the borrower's investment decision. For example, if the loan interest rate rises, the borrower may be more inclined to postpone the repayment or reschedule the loan period, thus bearing greater repayment pressure.
Generally speaking, the level of loan interest rate needs to be judged according to the specific situation. If the borrower has the ability to bear higher loan interest rates and the risk of portfolio loan projects is low, then high interest rates may become an advantage. But if the borrower can't afford high interest rates or the loan project is risky, then low interest rates may be the best choice.