In 2020, the state stipulates that the annual interest rate for ordinary commercial loans is 4.35% for less than one year (including one year), 4.75% for one to five years (including five years), and 4.9% for more than five years.

Loan interest rate refers to the ratio of the interest amount to the principal amount during the loan period.

China's interest rates are uniformly managed by the People's Bank of China, and the interest rates determined by it are implemented after approval by the State Council.

The level of loan interest rates directly determines the distribution ratio of profits between borrowing companies and banks, thus affecting the economic interests of both borrowers and lenders.

Loan interest rates vary depending on the type and term of the loan, and are also related to the scarcity of borrowed funds.

The loan interest rate is the main basis for both parties to the loan contract to calculate the loan interest, and the loan interest rate clause is the main clause of the loan contract.

To determine the interest rate of a loan contract with a bank or other financial institution as the lender, the parties can only negotiate within the upper and lower limits of the interest rate stipulated by the People's Bank of China.