If the loan is repaid on a monthly basis, there are two repayment methods:
One is equal principal and interest, and the other is equal principal repayment. If you choose different repayment methods, the interest generated will be different.
Calculation formula of equal principal and interest:
[loan principal × monthly interest rate ×( 1+ monthly interest rate) repayment months ]=[( 1+ monthly interest rate) repayment months-1]
Average capital calculation formula:
Monthly repayment amount = (loan principal ÷ repayment months)+(principal-accumulated amount of repaid principal) × monthly interest rate (where the symbol indicates power).
Extended data:
The loan interest rate is the interest rate charged by banks and other financial institutions to borrowers when they issue loans.
It is mainly divided into three categories: the loan interest rate of the central bank to commercial banks; The loan interest rate of commercial banks to customers; Interbank lending rate
The decisive factors of bank loan interest are:
① Bank cost. Any economic activity needs cost-benefit comparison.
There are two types of bank costs: borrowing costs-prepaid interest on borrowed funds; Additional cost-the cost of normal business.
② Average profit rate. Interest is the subdivision of profit, which must be less than the profit rate, and the average profit rate is the highest limit of interest. (3) the supply and demand of borrowing money and funds. If the supply exceeds the demand, the loan interest rate will inevitably fall, and vice versa.
In addition, the loan interest rate must also consider price changes, securities returns, political factors and so on.
However, some scholars believe that the upper limit of interest rate should be the marginal rate of return of funds.
The factor that restricts the interest rate is regarded as the comparison between the profit growth rate of enterprises after borrowing bank loans and the loan interest rate.
As long as the former is not lower than the latter, it is possible for enterprises to borrow money from banks.
Precautions:
1. When applying for a loan, the borrower makes a correct judgment on his repayment ability.
Design a repayment plan according to your income level, leaving room appropriately, without affecting your normal life.
2. Choose the appropriate repayment method.
There are two repayment methods: equal repayment method and equal principal repayment method. Once the repayment method is agreed in the contract, it shall not be changed during the whole loan period.
3. Repay on time every month to avoid penalty interest.
From the month after the loan is initiated, it is generally the repayment date of the next month. Don't cause liquidated damages because of your negligence, so that banks can't apply for loans again.
4. Take good care of your contracts and IOUs, read the terms of the contracts carefully, and know your rights and obligations.
Floating range:
(1) The floating range of the loan interest rate of commercial banks is 0.9 of the benchmark interest rate, with no upper limit;
(2) The floating range of the loan interest rate of credit cooperatives, the upper limit of 2.3 times of the loan interest rate of rural credit cooperatives shall be abolished, and the loan interest rate for customers shall be determined independently by rural credit cooperatives according to commercial principles.
(3) The maximum interest rate of private lending shall not exceed 4 times of the benchmark interest rate. If there is a loan dispute, the court will not support the overcharged interest.