How to calculate the interest on small loans?

The calculation method of the interest rate of the microfinance company is: assuming that the customer borrows 654.38+10,000 yuan for one year and the monthly interest rate is 2%, the monthly interest rate is 654.38+00000 * 2% = 200 yuan, and the annual interest rate is 2,400 yuan.

Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. Banks put concentrated money and monetary funds out through loans, which can meet the needs of social expansion and reproduction and promote economic development; At the same time, banks can also obtain loan interest income and increase their own accumulation.