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Which is the higher interest rate between flower and borrow in 2019

Which is the higher interest rate between flower and borrow in 2019

4hw.com.cn: Flower chant and borrowing chant are two products of ant finance. They are used for daily consumption. If you need cash urgently, you can use borrowing chant. Which interest rate is higher? Let's take a look at the comparison of interest between flower chant and loan chant.

Ant flower interest

Users use Huabai to pay for items purchased on Taobao and make repayment before the 10th of the next month after confirming receipt. During this period, Huabai does not charge users' interest. If the user fails to pay off the current payable amount before the repayment is due, certain overdue interest will be generated. The overdue interest is charged daily at 0.05% of the current unpaid amount. For example, in May, the user has to pay 10000 yuan, but only 5000 yuan has been paid before May 10. When the repayment is made on May 14, the overdue interest will be 10 yuan, which is 5000 yuan & times; 0.05%× Calculated in 4 days.

Ants borrow interest

The expected annualized interest rate on the borrowing date is 0.045%, and the maximum borrowing time is 12 months. In other words, if you borrow 10000 yuan a year, the total principal and interest to be repaid is 11642.5 yuan. Compared with the credit card, the interest is much cheaper, and the interest will be higher compared with the flower.

For example, Huabai borrows 1000 yuan, which is paid off in three phases, and the rate of the three phases is 2.5%. Borrow 1000 yuan, pay it off in three installments, repay the same amount every month, and the daily interest rate is 0.0003%. If you pay 1000 yuan in three installments, the total interest in three installments = 1000 & times; 2.5% = 25 yuan, and the repayment interest of each period is 25 & pide; 3 = 8.3 yuan. If you borrow 1000 yuan and repay it in three installments, the total interest will be 18.34 yuan in three installments.

As can be seen from the above, the total interest of Hua Bai is higher than that of borrow Bai. There are two operations for Huabai repayment. In the first operation, the interest of 8.3 yuan has been paid in the first phase, and the interest of 8.3 yuan in the second phase only needs to be paid if the amount of the remaining two phases is repaid in advance in the second phase. Therefore, Huabai paid off its arrears one month in advance and only charged a handling fee of 16.6 yuan for two months. In the second operation, if the handling fee is not reduced, a handling fee of 25 yuan will still be generated. If the loan is repaid in advance, the interest will only be charged for the actual use days. The interest calculation formula is the loan amount * actual loan days * daily interest rate, which should be less than 18.34 yuan.

Reminder: after the overdue transfer of Huabai, interest needs to be charged. If the current payable amount is not paid off before the repayment date, corresponding overdue interest will be generated. The overdue interest will be charged daily at 0.05% of the current outstanding amount.

For example, you have to repay 10000 yuan in April, but only 5000 yuan has been repaid before April 10. When you repay on April 14, there will be overdue interest of 10 yuan (formula: 5000 yuan & times; 0.05% & times; 4 days). The overdue borrowing of ants will also produce penalty interest, which will be charged according to 1.5 times of the original interest. Therefore, if the loan is overdue, we should not only continue to charge interest on a daily basis, but also charge a penalty interest of 1.5 times on a daily basis. If we want to recover the overdue, we need to pay the principal and handling fee together. Calculation formula of overdue interest: overdue interest = overdue amount * overdue days * interest * 1.5.