What's the interest on a 4% loan?
In China, cents is the traditional unit of interest. One point is calculated monthly, and the interest rate is 1%, and one point is one tenth of one point. 4% interest is the monthly interest rate. Fen is a folk name and refers to the monthly interest rate. One point is one percent per year, and one point is one thousandth per month. The interest calculation formula is: interest = principal × interest rate × deposit period.
Suppose the borrower applies for a loan of 20,000 yuan, and agrees to repay it after 1 year, with interest of 4% (monthly interest). Then after one year, the borrower needs to repay = principal+interest = 20000+20000 * 4 ‰ *12 = 20960 yuan.
However, there are also some informal online lending platforms that say that the loan interest is X%, but in fact, X% here refers to the daily interest rate rather than the monthly interest rate. If the daily interest rate is 4%, the annual interest rate will be quite high, and borrowers must be cautious in lending.
Is the interest rate of 4% high?
The monthly interest rate of 4% is equivalent to the monthly interest rate. The annual interest rate of this loan is very low compared with the annual interest rate stipulated in the latest private interest rate ceiling. It not only shows that the user's qualification is good, but also the application platform is banking financial institutions.
If you are not sure, you can convert it into a specific value and calculate it later. Value can be expressed by daily interest, monthly interest and annual interest rate respectively.
The above is the related content sharing of "How much is the loan interest of 4%", I hope it will help everyone!