What does the bank notice to change the interest rate mean?

The bank's notice to change the interest rate means that the bank informs the customer to change the loan pricing benchmark. According to Announcement [20 19] No.30 of the People's Bank of China issued by official website, the central bank and financial institutions should negotiate with the customers of existing floating interest rate loans on the conversion terms of the pricing benchmark, and convert the interest rate pricing method agreed in the original contract into LPR as the pricing benchmark (the added value can be negative), and the added value will remain unchanged during the remaining period of the contract; It can also be converted into a fixed interest rate. Pricing benchmark can only be converted once, and cannot be converted again after conversion. In the last repricing cycle, the floating-rate loan of inventory shall not be converted.

The pricing benchmark of floating rate loans is converted into LPR. Except for commercial personal housing loans, the value-added amount shall be determined by both borrowers and borrowers through consultation. The value-added of commercial personal housing loans should be equal to the difference between the latest interest rate of the original contract and the corresponding term LPR issued in February 20 19. From the conversion point to the first re-pricing date after that point (excluding), the execution interest rate level shall be equal to the latest execution interest rate level of the original contract, that is, the sum of LPR and value-added during the corresponding period of 20 19. Thereafter, from the first repricing date, the interest rate level is recalculated on each interest rate repricing date, and is determined by the corresponding period LPR and added value of the latest month. The stock floating interest rate loan is converted into a fixed interest rate, and the converted interest rate level is determined by the borrower and the borrower through consultation. The converted interest rate level of commercial personal housing loan should be equal to the latest interest rate level of the original contract.