What does the annualized interest rate of bank lending target mean?
At the beginning of May, the market interest rate pricing self-discipline mechanism meeting decided to standardize the annualized interest rate of loans, that is, all loans (including credit cards) in the future must be clearly marked with annualized interest rates. This is the interest generated by credit card installment and overdraft, which needs to be marked with annualized interest rate, and should be marked and reformed in the internal electronic system as soon as possible.
The annualized interest rate must be indicated in bank loans and related products, contracts and promotional materials, and cannot be displayed only in the form of daily interest rate, monthly interest rate and handling fee. Financial institutions will implement it immediately after receiving the notice.
This policy stipulates that loan products should be marked with annualized interest rate, which is good news for the majority of bank customers: at present, there are many kinds of interest rates in the market and the interest-bearing methods are complex, so most customers are easily confused when choosing credit products. After marking the annualized interest rate, users have a more unified reference dimension when choosing loan products, and also avoid the trouble of their own calculation.