List of loan interest rates in 2020

In 2020, the state stipulated that the benchmark interest rate of ordinary commercial loans should be 4.35% within one year (including one year), 4.75% from one year to five years (including five years) and 4.9% for more than five years.

The loan interest rate refers to the ratio of interest amount to principal amount during the loan period. China's interest rate is managed by the People's Bank of China, and the determined interest rate is implemented after being approved by the State Council.

The loan interest rate directly determines the profit distribution ratio between the borrowing enterprise and the bank, thus affecting the economic interests of both borrowers and lenders. The loan interest rate varies with the types and duration of loans, and it is also related to the scarcity of borrowed funds.

The loan interest rate is the main basis for the parties to the loan contract to calculate the loan interest, and the loan interest rate clause is the main clause of the loan contract. The interest rate of loan contracts with banks and other financial institutions as lenders can only be determined through consultation within the upper and lower interest rate limits stipulated by the People's Bank of China.