The fixed interest rate is stipulated by the state, which is not affected by the average social profit rate and the change of capital supply and demand in a certain period of time. The interest rate stipulated in the loan contract remains unchanged throughout the loan period. In the loan business for more than one year, the loan contract often stipulates an interest rate standard agreed by the borrower and the borrower to calculate interest, which is called the loan fixed interest rate.
According to industry insiders, for banks, the set interest rate is low, and all market risks will be concentrated in banks. Once the interest rate rises, the bank's capital cost is high and the loss is inevitable; If the interest rate is set on the high side, it is difficult for customers to accept it, and business cannot be carried out at all. For customers, it is a process of deeply understanding and frankly facing financial risks, especially interest rate risks.
Floating interest rate is an interest rate that can be adjusted regularly during the loan period. Common basic interest rate plus calculation. Usually, the loan interest rate or commercial paper interest rate of the most reputable enterprises in the market is set as the basic interest rate, and on this basis, 0.5 to 2 percentage points are added as the floating interest rate. Repay the principal at face value at maturity, and usually pay interest at the floating rate of the specified interest payment period.
Floating interest rate refers to the interest rate that is adjusted accordingly with the change of price or other factors during the loan period. Lenders and borrowers can agree that the interest rate can be adjusted with the price or other market interest rates when signing the loan agreement. Floating interest rate can avoid some disadvantages of fixed interest rate, but the calculation basis is diverse and the procedures are complicated.