What does the daily interest rate of 0.2% mean?
The daily interest rate of 0.2% means borrowing 100 yuan, and paying interest of 20 cents every day.
Many people may see that 100 yuan and 20 cents a day is very low, so you can definitely borrow it. But it is horrible to really calculate the annual interest rate.
The daily interest rate of 0.2% means borrowing 65,438+000 yuan at the interest rate of 20 cents per day for 365 days a year, so the total interest of borrowing 65,438+000 yuan per year will be 73 yuan, which is very high.
The daily interest rate is 0.2% =73 yuan/100 yuan * 100%=73% of the actual annual interest rate, which is illegal usury.
What does the annual interest rate 10% mean?
The annual interest rate 10% means borrowing 100 yuan, and paying interest every year 10 yuan.
Some people who can't count may think that the annual interest of borrowing 100 yuan is very high, which is definitely not cost-effective.
But I can tell you for sure that the loan interest rate of 10% in major financial institutions is very low at present, and the loan interest rate of many financial institutions exceeds 10%, so the annual loan interest rate of 10% is not high and can be borrowed.
Why is it better to choose a loan with an annual interest rate of 10%?
Through the above calculation, we know that the daily interest rate of 0.2% is actually 73%, while the annual interest rate 10% remains unchanged. From the annual interest rate, we can know that the daily interest rate of 0.2% is 7.3 times higher than the annual interest rate 10%, which is terrible.
For example, if you borrow 6,543,800 yuan, the interest will be calculated according to the time of one year (regardless of interest rate). If the interest is calculated according to the daily interest rate of 0.2%, it needs to pay 730,000 yuan for the loan, and the total principal and interest is 6.5438+0.73 million yuan. Who can afford this kind of interest?
However, according to the annual interest rate of 10%, the loan is 1 10,000 yuan, and only the interest of 1 10,000 yuan needs to be paid one year, and the total repayment is1/10,000 yuan.
For the same loan 1 10,000, the total interest calculated at the daily interest rate is 730,000 yuan, and the total interest calculated at the annual interest rate is 1 10,000 yuan, and the excess is 630,000 yuan. Of course, it is best to choose a loan with an annual interest rate of 10%.
Summarize and analyze
Through comprehensive calculation and analysis, we know that the daily interest rate is far from the annual interest rate, and the daily interest rate of 0.2% belongs to illegal usury, so we must stay away from usury. The annual interest rate is 10%, which is within the scope of legal protection. Of course, it is better to choose a legal loan.