1. Why does the longer the loan period, the higher the interest rate? Are banks unwilling to lend money?

Reasons:

1. It takes a long time to occupy the bank’s funds. , it takes a certain amount of time for the money from the bank to be withdrawn.

2. The longer the time, the greater the risk and the more uncertain factors.

So the interest rate will be higher than that of a short-term loan. This is not because banks are unwilling to lend; and the interest rates of different banks are also different. You can compare and find a suitable bank loan with a low interest rate.

Extended information:

Loan principles:

The "three principles" refer to safety, liquidity and efficiency, which are the principles of commercial bank loan operations. Fundamental principles. Article 4 of the "Commercial Bank Law of the People's Republic of China" stipulates: "Commercial banks take safety, liquidity, and efficiency as their operating principles, implement independent operations, bear their own risks, be responsible for their own profits and losses, and self-discipline."

1. Loan safety is the primary issue faced by commercial banks;

2. Liquidity refers to the ability to recover loans within a predetermined period or to liquidate them quickly without loss, satisfying customers The need to withdraw deposits at any time;

3. Efficiency is the basis for the bank's continued operations.

For example, if a long-term loan has a higher interest rate than a short-term loan, the efficiency will be good. However, if the loan period is longer, the risk will increase, the safety will be reduced, and the liquidity will become weaker. Therefore, there must be harmony between the "three natures" so that there will be no problems with loans.