What does lpr-20bp mean?

LPR interest rate bp can be understood as the loan interest rate is formed by adding or subtracting points on the basis of lpr. The bp here refers to the basis point, 100 bp. It means a floating rate of 1%. For example, adding 100 bp means that the loan interest rate will increase by one percentage point.

Take mortgages as an example. Today's mortgages are linked to LPR, and the lender's mortgage interest rate is calculated by adding points (bp) to the latest LPR. Because LPR is recalculated every month, the loan interest rate linked to LPR is also floating. :What is the concept of LPR interest rate +123BP?

1. LPR means interest rate, BP means basis point, one basis point is 0.01%, if the interest rate is 4.8%, then the concept of LPR interest rate +123BP is 4.8 %+1.23%=6.03%.

2. Different banks give different bonus points when users apply for a loan. In this case, users can choose a lower one, so that they can pay less interest after applying for a loan. However, users must meet the conditions specified by the bank when applying for a loan. If they cannot meet the conditions, the bank will reject it.

3. The loan benchmark interest rate is set by the direct policy of the central bank, the People's Bank of China. There are many factors that determine the floating percentage, and there are several specific situations:

First, the central bank directly stipulates that some loans can be floated up and some can be floated down (such as loans for real estate. The current policy tone is to prevent the property market from Overheating and insisting on living in housing rather than speculation, so the interest rates of real estate loans will generally rise);

Secondly, for the sake of profit or risk compensation, banks generally provide loans based on the qualifications or mortgages of individuals or companies. Make upward or downward adjustments.

4. After the loan is repaid overdue, it will be uploaded to the credit reporting center by the bank, causing the personal credit rating to become bad, which will affect the processing of various loans. Moreover, after the debt is repaid, it will continue to be saved on the credit report for 5 years. After 5 years, it will automatically disappear. If it is not repaid, the overdue record will always be recorded on the credit report.

1. LPR interest rate refers to the basic loan interest rate, which refers to the loan interest rate implemented by financial institutions for their best customers. Other loan interest rates can be adjusted on the basic loan interest rate.

2. Loan Prime Rate (LPR for short) refers to the loan interest rate implemented by financial institutions for their best customers. Other loan interest rates can be based on the borrower's credit situation, taking into account the mortgage, term, and interest rate floating methods. Factors such as loan interest rate and type are determined by adding or subtracting points to the basic loan interest rate. Currently, the one-year loan base interest rate is announced to the public.

3. The LPR quotation bank group currently consists of 9 commercial banks including Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Bank of Communications, China Merchants Bank, Shanghai Pudong Development Bank, CITIC Bank and Industrial Bank. bank composition. The quoting bank should comply with the hard financial constraints and the requirements of the macro-prudential policy framework, have high system importance, great market influence, strong comprehensive strength, have established an internal rate of return curve and an internal transfer pricing mechanism, and have strong independent pricing capabilities. The bank's loan base interest rate management regulations have been formulated, as well as other conditions that are conducive to carrying out quotation work. The self-regulatory mechanism for market interest rate pricing determines and adjusts the members of quoting banks based on the "Rules for Centralized Quotation and Publishing of Basic Loan Interest Rates", supervises and manages the operation of basic loan interest rates, and regulates the behavior of quoting banks and designated issuers. What does LPR interest rate mean? What does BP mean?

LPR means interest rate, BP means basis point, one basis point is 0.01%, if the interest rate is 4.8%, then the concept of LPR interest rate + 123BP is 4.8 %+1.23%=6.03%.

When applying for a loan, different banks give different points. In this case, users can choose the lower one, so that they can pay less interest after applying for the loan. However, users must meet the conditions specified by the bank when applying for a loan. If they cannot meet the conditions, the bank will reject it.

Related content:

Since the central bank issued reforms to improve the LPR formation mechanism, nearly 90% of newly issued loans have been priced with reference to the LPR, but existing floating rate loans are still priced based on the loan benchmark interest rate. , cannot reflect changes in market interest rates in a timely manner, and is not conducive to protecting the rights and interests of both borrowers and lenders.

In order to further deepen the LPR reform, the central bank promotes the smooth conversion of the pricing benchmark for existing floating rate loans.

In order to promote the integration of the two loan interest rate tracks into one, improve the efficiency of interest rate transmission, and promote the reduction of financing costs for the real economy, the central bank has improved the LPR formation mechanism and clarified that subsequent new loans will refer to the LPR pricing, and existing loans will gradually adjust the reference LPR pricing. What does the mortgage interest rate bp mean?

The bp of the mortgage interest rate means basis point. 1 basis point is equal to 0.01%. When applying for a mortgage, the loan interest rate is composed of LPR plus basis points (can be negative). For example, the LPR interest rate is 5.81%. If it rises by 5bp, it means an increase of 0.05%. Then the actual interest rate of the mortgage loan is LPR (5.81%) + 5bp (0.05%) = 5.86%. Different banks give different base points when applying for home loans, but the LPR interest rate is the same.

Users must meet the bank's conditions when applying for a home loan, otherwise the bank will directly refuse the loan. Usually the borrower pays the down payment, submits proof of employment, half-year bank statement, personal credit report, loan application, etc. After submission, the bank will review it, and after approval, the loan can be obtained.

You can choose different repayment methods when applying for a mortgage. Generally, there are equal amounts of principal and equal amounts of principal and interest. Under the premise of the same loan conditions, the total interest returned for equal amounts of principal and interest is more than equal amounts of principal, and each There is a certain difference in the monthly repayment amount. The principal and interest are the same every month for equal amounts, and the principal for equal amounts decreases.

Users must repay their mortgage on time after applying for a mortgage, and avoid overdue repayment, because overdue repayment will generate penalty interest, and the longer the time, the greater the penalty interest. Moreover, banks will collect debts after overdue repayments. Furthermore, overdue repayments will be uploaded to the credit reporting center. If personal credit becomes bad, it will affect the processing of various loans.