BP is the base point, which actually means the base point. One basis point is equal to 0.0 1%, which is one percent of 1%. LPR is the best lending rate and the quoted interest rate in the lending market (the best lending rate). "LPR benchmark interest rate BP" can be understood as the interest rate pricing is calculated according to LPR plus or minus points, which is expressed by a calculation formula, that is, the actual loan interest rate = LPR spread.
Assuming that the benchmark interest rate of LPR is 5.8 1%, which is 5BP higher, that is, 0.05% higher, the latest interest rate is LPR (5.81%)+5 BP (0.05%) = 5.86%. If it drops by 5BP, the latest interest rate is lpr (5.81%)-5bp (0.05%) = 5.76%.
The value of plus (minus) points is generally fixed within the term stipulated in the loan contract. Therefore, the fluctuation of loan interest rate mainly depends on the change of LPR. If LPR is raised, the loan interest rate will rise accordingly; On the contrary, when LPR falls, the loan interest rate will fall. But some people sign a loan contract with a fixed interest rate, and the loan interest rate will remain fixed.
Factors to be considered in lpr interest rate conversion
Personal income cash flow expectation is the most important consideration. Economic fluctuation is basically consistent with the fluctuation of residents' income and loan interest rate. If the nature of residents' work determines that their income fluctuation is more flexible and their economy is good, their income will increase, then it is not unreasonable to convert loans into LPR benchmarks. If the nature of income is relatively fixed and the growth rate is limited, then it has certain advantages to convert the loan interest rate into a fixed interest rate.
Whether the benchmark should be changed as soon as possible in the short term mainly depends on the repricing date arrangement. If the loan issuance date happens to be between March and 65438+February, it is a rational choice to change the loan pricing benchmark to LPR quotation as soon as possible and enjoy the interest relief brought by LPR in the future. If the loan issuance date is between 1 and March, it is more favorable to set 1 as the repricing date.