Is the interest rate of micro loan high, and why is the interest rate of micro loan getting higher a

When calculating the interest of micro loans, you can directly apply the formula: interest = remaining borrowing amount * daily interest rate * number of borrowing days.

For example, if you borrow 3,000 yuan from Micro Loan, the daily interest rate is, and the number of days you borrow is 10 days, then the interest = 3,000 * yuan.

It should be noted that since WeLoan adopts the equal principal repayment method, if your borrowing period exceeds the next repayment date, the remaining borrowing amount will be reduced accordingly.

For example, if you borrow 3,000 yuan from WeLoan, and repay a total of 3,000 yuan on the first repayment date, of which the principal is 300 yuan and the interest is yuan, then the remaining loan amount is only 2,700 yuan.

Therefore, the interest of the second installment = 2700 * yuan, and the interest of each subsequent installment will gradually decrease, because your remaining borrowing amount has been decreasing.

The interest rate is ridiculously high, the interest of borrowing 20,000 yuan a month is almost 1,500 yuan, you say it is not high, I have experienced it personally, and I advise you not to be fooled.

Reason: The borrower's comprehensive credit deteriorates, the borrower does not repay on time, the borrower's debt ratio becomes higher, and the borrower borrows a lot of times. All of this will lead to higher and higher interest rates on micro loans.

First, the daily interest rate of micro loan is that the interest rate of loan products equivalent to annualized interest rate is higher than that of general credit loan products of banks. However, WeBank said that in the future, with the further liberalization of users, differentiated pricing will be implemented, and customers with good credit can enjoy a daily interest rate of 2/10,000 to 3/10,000, which is equivalent to an annualized rate. The interest is calculated on a daily basis, so to know how much the interest is, you have to convert the annual interest rate into the daily interest rate, many financial institutions calculate 1 year as 360 days, then according to the formula:

Daily interest rate = annual interest rate 360, the annual interest rate of 18% is the daily interest rate, if you borrow 10,000 yuan for 1 day, it will cost about 5 yuan of interest, and 1 year is almost 1800 interest.

Second, the specific interest should be calculated according to the actual number of days borrowed, because no matter how many installments are selected when borrowing, the interest will be charged until the day before the repayment date, and the money borrowed on that day needs to be repaid from the next day to be repaid, and the interest of one day will be calculated. In addition, the interest rate of micro loan is not fixed, and the interest rate may be different from the previous one after repayment, because the credit conditions may be different, as for whether it is increased or decreased, the interest rate displayed on the page at the time of borrowing shall prevail.

Third, if the upper limit of judicial protection of private interest rates is determined according to the standard of 4 times the one-year LPR, the one-year LPR announced on May 20, 2021 is 4 times, which is the annual interest rate of 18 for micro loans. However, compared with other private loans, which are often more than 20%, micro loans are actually okay and relatively moderate. In addition, as mentioned earlier, the interest rate of micro loans is not fixed, as long as the borrower's credit conditions are better, the lower the interest rate may be.

The interest rate of micro loans is higher than that of bank loans.

The interest rate of micro loan is calculated on a daily basis, and the daily interest rate of micro loan is 18% per annum, which is higher than the annual interest rate of the bank within one year.

However, it should be noted that the daily interest rate is the highest interest rate level of WeLoan, and for high-quality customers, WeLoan will have preferential interest rates, which can be as low as the daily interest rate, which translates into an annual interest rate, which is also a relatively affordable interest rate.

Extended Information: "WeLoan" is the first Internet bank in China, WeBank, to launch a pure online microcredit revolving consumer loan product for WeChat users and mobile QQ users, which was launched on mobile QQ in May 2015 and WeChat in September 2015.

The "WeLoan" adopts an official invitation system, and invited users can see the "WeLoan" entrance in the "QQ Wallet" of QQ on their mobile phones and the "WeChat Pay" of WeChat, and can get a maximum loan amount of 200,000 yuan.

Features: As an Internet banking loan product launched by WeBank, "WeLoan" has the following characteristics:

1) Unsecured and unsecured;

Most of the personal loans provided by traditional financial institutions require the borrower to provide collateral and other guarantees, and it is difficult for individual users who cannot provide guarantees or do not have fixed assets in their names to obtain loans. "Micro Loan" does not require collateral and guarantee, and does not need to submit any paper materials, which can better meet the small financing needs of users with good credit.

2) 7*24 hours service, the fastest 1 minute to complete the loan;

Relying on strict risk control rules and a complete technical support system, "WeLoan" provides 7*24 hours online services, convenient and efficient procedures, all processes are completed on the mobile phone, and the loan can be received in 40 seconds at the earliest.

3) No handling fee for early repayment;

Most traditional financial institutions require users to repay on the day of repayment, and if users want to repay early, they need to apply and pay a handling fee. In addition to the regular default withholding repayment, "WeLoan" also allows users to settle the loan at any time without any additional handling fees.

Amount and interest rate.

The credit line of "Micro Loan" to users is between 100 yuan and 200,000 yuan, which varies according to the comprehensive situation of the individual. A single loan can be borrowed between 100 yuan and 40,000 yuan.

The daily interest rate is 2-5 yuan for 10,000 yuan a day.

Loan data. By the end of 2019, Micro Loan had issued more than 100 million loans to more than 28 million customers in nearly 600 cities in 31 provinces, municipalities and autonomous regions across the country, with a cumulative loan amount of more than one trillion yuan.

Micro Loan Interest:

WeLoan adopts automatic approval and disbursement, and can provide 7*24 services, and the entire loan process can be completed in 15 minutes. The specific quota is determined by Tencent's Internet big data risk control model, which is mainly based on Internet behavior data, such as consumption, social networking, games, and third-party data, and other multi-dimensional data, with a quota of between 2 and 200,000 yuan.

In terms of loan interest, the daily interest rate of Weparticle Loan is 5/10,000, which is equivalent to the expected annualized interest rate. In the future, with the further liberalization of the scope of users, differentiated pricing will be implemented, and customers with good credit can enjoy a daily interest rate of 2/10,000 to 3/10,000, which is equivalent to an annualized rate.

Micro Loan Credit Algorithm:

It is mainly based on Tencent's social data accumulated over the years and the central bank's personal credit data. In addition to personal credit reporting, social data is an important part of our scoring system.

1.The borrowing interest of micro loan is calculated on a daily basis, and the general daily interest rate is, the total interest of the banquet = daily interest Loan days = outstanding principal Daily interest rate Number of loan days.

2.Let's say you borrow $20,000 on a micro loan, the daily interest rate is 10 months.

3.Then the daily interest = 20,000 yuan, and on the 10th day of the borrowing state, the total interest = 4 10-40 yuan.

4.Thirdly, the total amount of repayment is $2,400.