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 this 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 this 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.

Second, the national standard of overdue penalty interest?

About penalty interest. 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 this 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 this contract until the loan principal and interest are fully paid off.

3. How to calculate the penalty interest in loans overdue?

First of all, answer directly.

The penalty interest rate standard for overdue loans is 30% to 50% higher than the loan interest rate agreed in the loan contract. The borrower fails to use the default interest rate of the loan as agreed in the contract, which is 50% higher than the loan interest rate agreed in the loan contract to 100%.

Second, the specific analysis

If the accumulated penalty interest after loans overdue is higher than the principal, it should be noted that the penalty interest rate charged by the lending institution/platform is likely to be non-compliant, and such a high interest rate may have reached the new standard. There is no need to return the expenses beyond a reasonable range.

Borrowers apply for loans too frequently or operate loans too frequently, which will increase personal credit risk. Personal credit risk index can be quickly queried in Beijian. The higher the risk score, the easier it is for the application to be rejected.

3. Can the penalty interest overdue for 9 years be reduced?

I can't.

Overdue penalty interest cannot be counted as compound interest. Penalty interest is not only the interest generated by overdue principal, but also a punishment measure for overdue repayment of borrowers. Accumulating compound interest on this basis is tantamount to double punishment, which violates the principles of fairness and compensation. Therefore, penalty interest compound interest should not be supported.

I suggest you pay more attention to whether lending institutions/platforms are formal. Try to choose a lending institution/platform with a financial license to apply for a loan, and don't go to an informal small loan company to avoid encountering it.

4. What is the standard of overdue penalty interest stipulated by the People's Bank of China? What's the current figure?

In case of overdue payment, there is not only a late payment fee of 5% of the minimum unpaid part, but also a full penalty interest on the bill (the daily interest rate is 0.5 ‰, and the interest will be recovered from the day of consumption on a monthly basis until the principal and interest are paid off).