How do banks earn spread income?
The calculation formula of bank deposit simple interest: total interest = principal deposit interest rate deposit period;
Calculation formula of compound interest of bank loans: total interest = principal (loan interest rate 1) loan years.
For example, after the outbreak in 2022, Xiao Wang took 10000 yuan to the bank to make a five-year time deposit, and the average annual interest rate of each bank was 2.75%, so his deposit interest income was 1375 yuan (= 100002.75% 5). However, if he borrows 10000 yuan from the bank, which is 3.25% in five years, his loan interest expense is 1734. 1 1 yuan (=10000 (13.25).
The spread earned by banks is 359. 1 1 yuan (=1734.11375).
Here, the bank not only earned the difference from the interest rate, but also made another profit from the difference between compound interest and simple interest in the calculation of interest. Therefore, please ask friends who borrow money to measure their repayment ability before lending, so as to make the loan moderate and reasonable.
How do banks make profits through loans?
No one knows what will happen in the future, and banks will not know whether the RMB will depreciate in a few years. The profit point of bank loans is the interest expenses generated by loans. Personal loans, banks don't earn much! The main profit of bank loans lies in loans and investments to large enterprises, and small loans to citizens are only a small part.
First of all, before you make a mortgage, the bank will first examine and approve your information to see if you have the ability to repay the mortgage. So when you apply for a bank mortgage, the bank will ask you to show your work certificate, bank account and social security certificate to prove that you are a person with repayment ability, and then the bank will make money by lending you money and charging interest. For example, your mortgage loan is 300,000 yuan and the repayment period is 20 years. In these 20 years, your loan in the bank was repaid monthly. After 20 years, you will find that the total amount of money you repay will be much higher than the original loan amount. This is how banks make money. Generally, after 20 years, you have to pay back about 450,000 yuan, which depends on the interest rate of bank loans at that time and whether you have made housing provident fund loans. All these will have an impact on the total repayment amount, but the bank will definitely make a lot of money!
That is, the bank lends you money and then charges you higher interest. It constitutes the bank's profits. First of all, before you make a mortgage, the bank will examine and approve your information to see if you have the ability to repay the mortgage. So when you apply for a bank mortgage, the bank will ask you to show your work certificate, bank running water and social security certificate to prove that you are a person with repayment ability, and then the bank will make money by lending you money and charging interest.
How to get a loan from a bank to do business?
Loan application process:
1. Apply directly to the agency of the host bank or other banks.
2. During the application process, you fill in the loan application form, provide basic information about yourself and the guarantor, and relevant documents that need to be produced according to the requirements of the bank, such as ID card, real estate license, income certificate, etc.
The bank evaluates your credit rating according to the information you submitted.
Among them, the reference factors are: economic strength, asset certificate, personal credit record and so on.
4. After the evaluation, the bank will also conduct a preliminary loan investigation: verify the collateral and guarantor, and determine the risk of the loan.
5. Waiting for loan approval
6. After the bank informs you that you are qualified, both parties need to sign a loan contract.
When signing a loan contract, it is necessary to fill in the agreed loan type, loan purpose, amount, interest rate, loan term, repayment method, rights and obligations of both borrowers and borrowers, liability for breach of contract and other matters that both parties think need to be agreed.
7. Waiting for the loan to be issued
How to make money with loans
There is no such loophole to drill.
First, in terms of loan types, it is generally appropriate to gradually upgrade from small to large. You can apply for a working capital loan from the bank through effective procedures such as pledge, mortgage or third-party guarantee, and then apply for a project loan after you have certain strength.
Second, in terms of loan amount, since the general economy of individual operators is not very rich, they should do what they can to avoid large investment.
Thirdly, in terms of loan interest rate, according to the relevant regulations of the People's Bank of China, commercial banks and urban and rural credit cooperatives can raise the loan interest rate of individual operators within 30%. However, the floating interest rates of banks and credit cooperatives are not consistent, so when applying for loans, you can' shop around' and try to choose financial institutions with small floating interest rates to lend.
4. In terms of loan term, the current short-term loans are divided into two interest rate classes: within 6 months (including 6 months) and 6~ 12 months (including 1 year). For short-term loans with a term of less than 1 year, the contract interest rate shall be implemented, and interest shall not be calculated in installments; Medium and long-term loans are divided into three grades: 1~3 years, 3~5 years and more than 5 years. Interest is calculated in stages for medium and long-term loans. When the loan interest rate is adjusted, the new interest rate of the same loan in the same period will be implemented in June of the following year 1.
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