Does the bank have the final say on loan interest rates?

Have you ever received such a phone call or SMS promotion?

"Dear distinguished guest, you are a high-quality customer of our bank. Now you can apply for this fund by providing a loan of 100,000 yuan with an interest rate of 3.6%. You only need to repay 300 yuan every month. Interest! ”

Were you excited when you heard the news? You calculated in your mind that 300 yuan a month is only 3,600, and the annualized interest rate is only 3.6% = 300 12/100,000. There seemed to be no problem at all, but the water was very deep.

1. Loan interest

In the most familiar mortgage, loan interest = loan principal, loan interest rate, loan period, so your loan interest is the cost you pay while occupying the funds. Only the loan interest rate when you occupy the principal is the real loan interest rate.

So what’s wrong with the example mentioned at the beginning of the article?

First, there is no explanation of the loan repayment method, that is, there is no clear explanation of the occupation of funds. If you use the average capital method, assuming it is a one-year loan, you have to repay 100,000/12 of the principal every month. Then you only have less than 10,000 yuan in principal left in the last month, but you still have to pay back 300 yuan in "interest."

Second, usually in the loan contract, it is only stated that this fee is a handling fee, and the interest is said to be 0, but in fact the handling fee is 300 yuan per month.

Two. Example

So, let’s actually calculate how much interest needs to be paid on a one-year loan with a principal of 100,000, repaid according to the average capital method, and an annualized interest rate of 3.6%.

One-year loan

As can be seen from the above figure, the one-year loan has a principal of 100,000 yuan and is repaid according to the average capital method. If the annual interest rate is 3.6%, you only need to pay interest of 1,950 yuan. However, the loan mentioned at the beginning of the article requires 3,600 yuan, which is nearly 85% more interest. Therefore, conversely, the corresponding annual interest rate for the interest of 3,600 should be 3.6% 1.85=6.66%.

Let’s use a calculator to calculate the annualized interest rate of 6.66% to see if the interest rate is 3,600 yuan.

6.6% annual interest expense

Through actual calculations, now the so-called "100,000 yuan loan with an interest rate of 3.6%" can apply for this fund, and you only need to repay 300 yuan every month. "Yuan interest" is not obvious! The annual interest rate is 6.66%.

Then you have to ask at this time, isn’t this false marketing? In fact, this is a small episode. The annual interest rate of 3.6% was not stated in the actual contract. Usually it is written that the installment fee is 300 per issue, 12 issues per period. In this way, this fee becomes an "installment fee" or "handling fee" rather than what we call the loan interest rate.

Do you understand now? Related questions and answers: