Legal basis: Provisions on the Administration of RMB Interest Rate
Twentieth short-term loans (the term is less than one year, including one year), according to the legal loan interest rate of the corresponding grade on the date of signing the loan contract. During the loan contract period, in case of interest rate adjustment, interest will not be calculated by installments.
Short-term loans are settled quarterly, and the 20th day of the last month of each quarter is the settlement date; If the interest is settled monthly, the 20th of each month is the interest settlement date. The specific interest settlement method shall be determined by the borrower and the lender through consultation. Interest that cannot be paid on schedule during the loan period will be compounded quarterly or monthly according to the loan contract interest rate, and will be compounded at the default interest rate after loans overdue. When the last loan is paid off, the profit will be paid off together with the principal.
Twenty-first medium and long-term loans (with a term of more than one year) have a fixed interest rate of one year. The loan (including all the funds that should be allocated by installments within one year from the effective date of the loan contract) bears interest according to the legal loan interest rate of the corresponding grade on the effective date of the loan contract, and the interest rate for the next year is determined according to the legal loan interest rate of the corresponding grade at that time one year later (the first loan is paid by installments). Medium and long-term loans are settled quarterly, and the 20th of the last month of each quarter is the settlement date. Interest that cannot be paid on schedule during the loan period shall be compounded quarterly according to the contract interest rate, and after loans overdue, it shall be compounded at the default interest rate.