The Provisions on the Administration of RMB Interest Rate stipulates in principle the interest rate, interest settlement method and interest settlement date applicable to the calculation of interest, as follows: Article 20 stipulates that short-term loans (with a term of less than one year, including one year) shall bear interest at the legal loan interest rate of the corresponding grade on the signing date of the loan contract. During the loan contract period, in case of interest rate adjustment, interest will not be calculated by installments. Short-term loans are settled quarterly, and the 20th day of the last month of each quarter is the settlement date; If the interest is settled on a monthly basis, the 20th of each month is the interest settlement date. The specific interest settlement method shall be determined by the borrower and the lender through consultation. Interest that cannot be paid on schedule during the loan period shall be compounded quarterly or monthly according to the loan contract interest rate, and after loans overdue, at the default interest rate. When the last loan is paid off, the profit will be paid off with the principal. Article 21 stipulates that the interest rate of medium and long-term loans (with a term of more than one year) shall be fixed for one year. The loan (including all the funds that should be allocated by installments within one year from the effective date of the loan contract) bears interest according to the legal loan interest rate of the corresponding grade on the effective date of the loan contract, and one year later, the interest rate of the next year is determined according to the legal loan interest rate of the corresponding grade at that time (the first loan is paid by installments). Medium and long-term loans are settled quarterly, and the 20th of the last month of each quarter is the settlement date. The interest that cannot be paid on schedule during the loan period shall be compounded quarterly according to the contract interest rate, and after loans overdue, it shall be compounded at the default interest rate. Article 25 stipulates: from the date of overdue or misappropriation of loans, default interest will be charged at the default interest rate until the principal and interest are paid off, and interest will be calculated by stages when the default interest rate is adjusted. Interest that cannot be paid on schedule during loans overdue or misappropriation shall be compounded quarterly (short-term loans can also be monthly) according to the penalty interest rate. Just like loans overdue's misappropriation, we should choose carefully and not combine. On 20031February 10, the People's Bank of China issued the Notice on Issues Related to RMB Loan Interest Rate, which adjusted the loan interest rate and interest settlement method and expanded the autonomy of financial institutions. The main contents are as follows: the interest rate of RMB medium and long-term loans has been changed from the original one-year fixed to the independent decision of borrowers and lenders according to commercial principles. It can be adjusted monthly, quarterly and annually during the contract period, or it can be determined at a fixed interest rate. The interest rate of loans with a term of more than five years shall be determined independently by financial institutions with reference to the interest rate of loans with a term of more than five years published by the People's Bank of China. The default interest rate of overdue loans (loans that the borrower fails to repay on the date agreed in the contract) is changed from the current daily interest rate of 2. 1% to 30%-50% higher than the loan interest rate agreed in the loan contract; If the borrower fails to use the loan as agreed in the contract, the penalty interest rate will be changed from the current daily interest rate of five ten thousandths to 50%- 100% of the loan interest rate agreed in the loan contract. It is not easy to calculate the exact amount of interest. Therefore, when financial institutions recover creditor's rights from debtors in legal proceedings, they usually calculate the amount of interest up to a certain point, and reserve the right to continue to recover the interest that occurred after that point.