Interest rate change,collateral and loan termination

To study the relationship among the collateral,the interest rate and the violation behavior in credit contracts,and discuss the problem about the loan model in which the collateral is considered much while the interest rate price is neglected in China,a credit model composed of the interest rate and the collateral is established. The effect of returns reallocation caused by the interest rate change on the repayment motive of debtor is analyzed. The contract violation and the bank loan termination caused by interest rate change are analyzed as well.