In normal life, many people will hear others say that the loan interest rate is 5% or 4% when applying for a loan. Some people don't understand what these statements mean at all and feel particularly professional. Today, I will tell you how to calculate the loan interest rate of 5% and what it means. Many private loan companies or some professionals prefer to use the loan interest rate of 5%, that is to say, in addition, the loan interest rate of 5% is basically applicable to short-term loans. Under normal circumstances, the loan interest rate of 5% means that the monthly interest rate of the loan is converted into an annual interest rate of 6%. If you apply for a loan of 100000 yuan from a financial institution, the interest you have to pay every month is 500 yuan, and the interest you have to pay every year is 6000 yuan. This is the real meaning of the loan interest rate of 5%. Need to remind everyone that the loan interest rate of 5% mentioned by some financial institutions refers to the daily interest rate, that is, the annualized interest rate has been reached. If the loan interest rate of 5% refers to the daily interest rate, it is illegal usury, so don't apply. Generally speaking, the loan interest rate of 5% is a professional and traditional statement. Everyone should pay attention to whether the loan interest rate of 5% refers to the monthly interest rate or the daily interest rate.