The difference between lpr interest rate and benchmark interest rate of China Bank;
The benchmark loan interest rate is adjusted and announced by the People's Bank of China from time to time. LPR is the interest rate quoted by the quoting bank according to the loan interest rate executed by the bank's best customer, which is calculated and published by the National Interbank Funding Center authorized by the People's Bank of China. Compared with the benchmark loan interest rate, LPR is more market-oriented and can better reflect the changes in market supply and demand.
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What's the difference between benchmark interest rate and lpr interest rate?
Difference between benchmark interest rate and lpr interest rate: The benchmark loan interest rate is adjusted and announced by the People's Bank of China from time to time. LPR is the interest rate independently quoted by each quotation bank, which is calculated and published by the National Interbank Funding Center authorized by the People's Bank of China and adjusted once a month. Compared with the benchmark loan interest rate, LPR is more market-oriented and can better reflect the changes in market supply and demand.
The benchmark interest rate is the guiding interest rate for commercial banks' deposits, loans and discounts announced by the People's Bank of China, and the deposit interest rate of financial institutions can be lowered on the basis of the benchmark interest rate. For ordinary people, the most common are time deposits and mortgage loans. Mortgage will rise and fall from time to time on the basis of the benchmark interest rate according to personal circumstances. The benchmark interest rate is divided into deposits, commercial loans and provident fund loans.
The full name of LPR is "loan market quotation rate". It is submitted by some representative quotation banks (mainly major banks) to the National Interbank Funding Center, and its price is formed according to the bank's loan interest rate for the best quality customers plus the open market operating interest rate. After removing the highest and lowest quotations, the National Interbank Funding Center calculated the LPR of 0.05% by arithmetic average and announced it at 9: 30 that day. The public can inquire at the National Interbank Funding Center and the website of China People's Bank.
Which is better, lpr interest rate or benchmark interest rate?
Difference between lpr interest rate and benchmark interest rate: The benchmark interest rate of loans is adjusted and announced by the People's Bank of China from time to time. LPR is the interest rate quoted by the quoting bank according to the loan interest rate executed by the bank's best customer, which is calculated and published by the National Interbank Funding Center authorized by the People's Bank of China. Compared with the benchmark loan interest rate, LPR is more market-oriented and can better reflect the changes in market supply and demand. For example, in the past, banks issued loans to customers, and the interest rate was determined in the form of "XX times floating" and "XX discount" according to the benchmark loan interest rate announced by the central bank. On August 7, 20 19, the People's Bank of China issued an announcement to reform and improve the formation mechanism of LPR, and made it clear that banks should mainly refer to LPR to determine the loan interest rate. That is to say, when the bank issues new loans, the interest rate will be determined in the form of "LPR+xx basis points", "LPR-xx basis points" (one basis point =0.0 1%), "LPR+xx%" or "LPR-xx%" with reference to LPR.
Which is more cost-effective, LpR interest rate or mortgage benchmark interest rate?
Well, it depends. At present, choosing lpr interest rate is a cost-effective point.
What needs to be known is that if you choose a fixed interest rate, the mortgage interest rate will remain unchanged. If the LPR interest rate is selected, the annual mortgage interest rate will be adjusted according to the LPR interest rate of 65438+ last February. If the LPR quotation is lowered in the future, it will be more cost-effective to implement it according to the LPR interest rate. However, if the LPR quotation is raised in the future, it will be more cost-effective to implement it at a fixed interest rate.
If your mortgage meets the following three points at the same time, you need to convert the lpr interest rate:
Issued before 1, 2020 1, or the loan contract has been signed but not yet issued;
2. Pricing with reference to the benchmark loan interest rate (such as "benchmark interest rate rises 10%" or "benchmark interest rate is 30% off");
3. Floating interest rate (e.g. June 65438+1 October1adjusted interest rate).