What is the interest rate on bank loans?

The calculation formula for bank loan interest is: interest = principal interest rate. The loan period. The annual interest rate of bank loans is about 4.5%. Then the interest for a loan of 50,000 per year is 50,000 times 4.5% = 2,250 yuan. .

So the interest for a bank loan of RMB 50,000 per year is about RMB 2,000. However, when applying for a loan at the bank, the interest is often not calculated this way. You can apply for installment repayment after the loan, so the interest generated in each period is It will be much lower.

Interest is the fee for using currency within a certain period of time. It refers to the remuneration that currency holders (creditors) receive from borrowers (debtors) for lending currency or currency capital. Including interest on deposits, loans and various bonds.

1. Money other than principal received from deposits and loans (different from ‘principal’).

2. Interest (interest), in abstract terms, refers to the value-added amount brought about when monetary funds are injected into and returned to the real economic sector. To put it less abstractly, interest generally refers to the remuneration paid by the borrower (debtor) to the lender (creditor) for the use of borrowed currency or capital. Also called sub-gold, the symmetry of the parent fund (principal).

The calculation formula of interest is: interest = principal × interest rate × deposit period (that is, time).

Interest is the remuneration received by the owner of the funds for lending the funds. It comes from a part of the profits generated by the producers using the funds to perform operational functions. It refers to the value-added amount brought about when monetary funds are injected into and returned to the real economic sector.

The calculation formula is: interest = principal × interest rate × deposit period × 100%

3. Classification of bank interest

According to the different nature of banking business, it can be divided into two types: bank interest receivable and bank interest payable.

Interest receivable refers to the remuneration a bank receives from borrowers when it lends funds to borrowers; it is the price borrowers must pay for using funds; it is also part of the bank's profits.

Interest payable refers to the remuneration paid to depositors by a bank for absorbing deposits from depositors; it is the price that a bank must pay to absorb deposits and is also part of the bank's costs.

Factors

Delayed consumption

When a lender lends money, it is equivalent to delaying the consumption of consumer goods. According to the principle of time preference, consumers will prefer current goods to future goods, so positive interest rates will appear in the free market.

Expected Inflation

Most economies will experience inflation, which represents an amount of money that will buy fewer goods in the future than today. Therefore, the borrower needs to compensate the lender for losses during this period.

Substitutional Investments

Lenders have the option to put their money in other investments. Due to opportunity costs, lenders who lend money are giving up possible returns on other investments. Borrowers compete with other investments for this funding.

Investment Risks

The borrower is at risk of bankruptcy, absconding or defaulting on debts at any time. Lenders need to charge additional money to ensure that they can still obtain funds in these circumstances. compensate.

Liquidity Preference

People would prefer that their funds or resources be readily available for immediate trading, rather than requiring time or money to retrieve them. Interest rates also compensate for this.

Bank loan process

Bank loan process: 1. The applicant applies for a loan from the bank. Qualified applicants need to submit relevant information required for bank loans. 2. The bank evaluates the borrower's credit rating and verifies the authenticity of relevant information. 3. The bank investigates the borrower’s legality, safety, profitability, etc. 4. Loan approval. If the loan conditions are met, the bank will review and approve the loan amount. 5. The bank signs a loan contract with the borrower. 6. The bank issues loans on time according to the loan contract. 7. Loan repayment. The borrower needs to repay the principal and interest of the loan in full and on time as stipulated in the contract. If he wants to extend the loan, he should submit a loan extension application to the bank before the loan maturity date. The bank decides whether to extend the loan.

Legal basis: "Interim Measures for Personal Loans"

Article 11

A personal loan application shall meet the following conditions: (1) The borrower must have full civil A citizen of the People's Republic of China with legal capacity or an overseas natural person who complies with relevant national regulations; (2) the purpose of the loan is clear and legal; (3) the amount, term and currency of the loan application are reasonable; (4) the borrower is willing to repay the loan and repayment ability; (5) The borrower's credit status is good and there is no major bad credit record; (6) Other conditions required by the lender.

What are the forms of bank loans?

Forms of loans:

1. Policy borrowing

What are the main forms of loans? ? If the borrower already has a commercial insurance, he can borrow money from the insurance company, and he can borrow up to 80% of the cash value of the policy. The interest rate is the same as the bank's 6-month borrowing rate (the current annual bank interest rate for 6-month loans is 5.6%).

2. Credit card installment payment

If a credit card limit of 100,000 is used to pay for consumption, the borrower is generally required to have assets of 500,000 or more in the bank (including certificates of deposit, bank Financial products, etc.), consumption with credit cards can be divided into two stages.

3. Bank personal consumption loans

Almost every commercial bank has consumer loans, with a loan of 100,000 and a term of one year. The interest rate of bank personal consumption loans is generally 7%-8%. , can support a variety of purposes, such as marriage, education, decoration, car purchase, etc. The consumer loan products launched by some banks are pure credit.

Extended information

The loan method refers to the supply method of credit fund demand.

Should the bank provide loans directly to the reasonable capital needs of enterprises in the production and operation process, provide loans to buyers, or provide loans to sales? What kind of fund supply method should be adopted to facilitate the coordination of production and sales? relationship; it is conducive to maintaining the dominant position of bank credit and bringing commercial credit into the bank credit track. The solution to these problems requires the selection of loan methods.