I hope my answer is helpful to you.

First of all,

You know exactly what equal principal and interest are.

What is average capital?

Average capital plus interest

Is to average the principal and interest to each repayment period.

That is, from beginning to end.

The monthly payment is the same.

Average capital

It means that the principal amount of monthly repayment is the same.

Equal to in the same situation.

The prepayment amount of average capital is greater than the equal principal and interest.

It is equivalent to overpaying the principal.

With the reduction of loan principal

The correspond interest is reduce.

therefore

General funds are suitable for loan customers with sufficient funds in the early stage.

Although there are many prepayments.

But the total repayment amount will be less.

If you have any other questions.

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