Research On The Application Of Compound Interest In Financial Loan Contract

Compound interest is an important part of financial loan contracts.At present,China's legal provisions on compound interest in financial loan contracts are relatively lagging behind the development of judicial practice,which has led to some controversy in judicial practice.In order to solve these disputes,this paper studies the application scope of compound interest in financial loan contracts.Firstly,the paper discusses the background,significance,research status at home and abroad,as well as the innovation and shortcomings of the research.The second part defines the related concepts of compound interest,analyzes the attributes of compound interest,and sorts out the current legal provisions on compound interest in financial loan contracts in China;the third part is through the combination of case analysis and case analysis.The method analyzes and sorts out the disputes applicable to compound interest in judicial practice.Finally,it can be concluded that the dispute over compound interest in China's current financial loan contract can be summarized as two points: the calculation of the compound base of compound interest and whether compound interest can be used as a penalty.The calculation of the base of interest.The fourth part starts with theoretical analysis and discusses whether compound interest should be applied in the financial loan contract.Through analysis,it is considered that the application of compound interest should be supported,but it needs to be restricted in specific application,and then the specific application of compound interest is analyzed.And the discussion;The fifth part,based on the above analysis of the application of compound interest in financial loan contracts,puts forward several suggestions that should be made clear in the application process,and proposes to solve the application of compound interest by improving legislation,introducing judicial interpretation and issuing guiding cases.