Interest = principal × interest rate × loan term; For example, with a loan of 200,000 yuan, the monthly interest rate is 0.7 1%, and the monthly interest payable is 200,000 * 0.7 1% * 1 month = 1420.

Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. Banks put concentrated money and monetary funds out through loans, which can meet the needs of social expansion and reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation.