Overdue interest: refers to the penalty interest caused by loans overdue, specifically refers to the overdue penalty interest of the lender who fails to repay the loan according to the contract.

The general operation is to increase the penalty interest by 30%-50% on the basis of the original loan interest rate, and the specific algorithm depends on the different circumstances of each case.

Based on:

Notice of the People's Bank of China on Relevant Issues Concerning the Interest Rate of RMB Loans

(Yinfa [2003] No.251)

Branches and business management departments of the People's Bank of China, policy banks, wholly state-owned commercial banks and joint-stock commercial banks:

In order to steadily promote the reform of interest rate marketization and give full play to the regulatory role of interest rate leverage. The relevant matters concerning RMB loan interest rate and interest settlement are hereby notified as follows:

I. On the interest settlement of RMB loans. The method of interest calculation and settlement for RMB loans (not applicable to individual housing loans) shall be determined by both borrowers and borrowers through consultation.

II. Adjustment of loan interest rate during the contract period. The interest rate of medium and long-term RMB loans is fixed from the original one year to be determined by both borrowers and borrowers according to commercial principles. During the contract period, it can be adjusted monthly, quarterly and annually, or a fixed interest rate can be adopted.

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.

Third, on the issue of penalty interest rate. 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.

For loans that are overdue or not used according to the purpose agreed in the contract, interest will be charged at the default interest rate from the date when they are used in loans overdue or not according to the purpose agreed in the contract until the loan principal and interest are fully paid off. For the interest that cannot be paid on time, compound interest shall be calculated at the penalty interest rate.

Iv. New loans issued after June 65438+1 October 1 day (including June 65438+1October/day, 2004) shall be subject to this notice. The unexpired loans issued before June 5438+1 October12004 are still executed according to the original loan contract, but this notice can also be executed by mutual agreement.

Five, this notice shall be implemented as of June 1 2004. If the provisions on RMB loan interest rate previously issued by the People's Bank of China are inconsistent with this notice, this notice shall prevail.

People's Bank of China

Overdue interest rate refers to the interest rate after default.

For example, your bank loan interest rate is 6.55%; The overdue interest rate is 7.2%.

If the repayment is made at the specified time every month, the interest rate of 6.55% will be implemented all the time.

If the repayment is made after the specified repayment time, the interest rate will rise to 7.2%; So the overdue interest rate is punitive.

Of course, the overdue interest rate of credit cards is mostly based on the daily interest rate of five ten thousandths.