loan interest rate.
interest rate refers to the ratio of the amount of interest to the amount of borrowed funds (principal) in a certain period. Interest rate is the main factor that determines the capital cost of enterprises, and it is also the decisive factor for enterprises to raise funds and invest. We must pay attention to the current situation and changing trend of interest rate in the study of financial environment.
interest rate refers to the ratio of the interest amount due in each period to the par value in the amount borrowed, deposited or borrowed (called the total principal). The total interest of the lent or borrowed amount depends on the total principal, interest rate, frequency of compound interest, and the length of time of lending, deposit or borrowing. Interest rate is the price that the borrower needs to pay for the money he borrows, and it is also the return that the lender gets by delaying his consumption and lending it to the borrower. The interest rate is usually calculated as a percentage of one-year interest to principal. In terms of expression, interest rate refers to the ratio of interest amount to total loan capital in a certain period of time. Interest rate is the interest level of unit currency in unit time, indicating the amount of interest.
the loan interest rate refers to the ratio of the interest amount to the principal amount during the loan period. To determine the interest rate of a loan contract with banks and other financial institutions as lenders, the parties can only negotiate within the upper and lower limits of the interest rate stipulated by the Bank of China. So how to repay the bank loan is the most cost-effective? Here I will introduce some knowledge about loans to you.
1. Matching principal and interest repayment: this is the mainstream repayment method at present. In this way, the same amount is paid every month, and the amount of principal and interest will be different, and the amount of principal in the early stage is greater than the amount of interest; The amount of interest paid in the later period is greater than this amount. This repayment method is suitable for loan applicants with stable income, and it is more convenient to arrange income and expenditure; Its disadvantage is that the amount of interest paid is relatively large, the interest will not decrease with the decrease of the principal, and the total interest on repayment is high.
2. Matching principal repayment: This way, the loan applicant repays the same principal every month, and the monthly interest will decrease with the decrease of this amount. There are more principal and interest paid in the early stage, but the total amount of interest to be paid is relatively small, and the repayment burden decreases month by month. This repayment method is suitable for loan applicants who have abundant funds at hand after the loan, and requires high repayment ability in the early stage.
3. One-time repayment of principal and interest: If the loan term is less than one year (including one year), the principal and interest will be repaid once it is due, and the interest will be paid off with the principal. This repayment method is generally only open to small short-term loans. The applicability is not strong.
4. Pay interest and repay the principal on schedule: This way, the loan applicant decides to repay the loan at monthly, quarterly or annual intervals. To put it simply, the loan applicant collects the money to be repaid every month into several months according to different financial conditions. This repayment method is suitable for people with unstable income.
banks should pay attention to the handling methods when handling loans, and choose the repayment method that suits them. Different repayment methods have different repayment funds every month, so you can choose according to your actual situation. The above is the introduction about how much the interest on bank loans is and how to repay them cost-effectively. Let's learn more about loan repayment.