After the loan is issued, the borrower only needs to pay interest every month within the time limit agreed in the contract, and will not return the loan principal for the time being. After the grace period, the loan principal and interest shall be repaid in the form of average capital or equal principal and interest as agreed in the contract. The grace period is 1 year (12 periods), 2 years (24 periods) and 3 years (36 periods).
For example, the buyer applies for a loan of 500,000 yuan 1 year. If the grace period is1year, the loan period is 1 1 year (1year+1 year), and the loan issuance date is 2006/kloc. During this period, the borrower only pays interest and does not repay the principal. After the expiration of one year 12, the borrower began to repay the principal and interest, and the monthly repayment amount increased greatly. This repayment method can greatly reduce the early repayment pressure, especially suitable for buyers who have exhausted their savings when buying a house, but have insufficient economic strength such as decoration and wedding, and have better income prospects in the later period.
According to the length of the loan period, loans can be divided into short-term loans and medium-and long-term loans.
1), short-term loans with a term of 1 year or 1 year (temporary loans for more than 3 months and less than 6 months), characterized by short term, low risk and high interest rate. They are usually issued in the form of "loans", which are mainly used to meet the needs of borrowers for short-term funds.
2) The medium-term loan term is over 1 year (excluding 1 year) and under five years (including five years), which is characterized by long term, high interest rate, poor liquidity and high risk.
3) Long-term loans of more than 5 years (excluding 5 years).