1. The difference between interest before principal and equal principal and interest includes:

(1) has different definitions. Interest first, then funds. In the repayment process, the borrower only needs to repay the interest every month, and then repay the principal in one lump sum after the loan expires. Matching principal and interest, that is, the borrower repays part of the principal interest every month, and the monthly repayment amount is the same;

(2) The scope of application is different. Interest before principal is generally used for operating loans and mortgage loans, and the matching principal and interest have a wide range of applications;

(3) The applicable population is different. Interest before interest is applied to those with higher expected income, and equal principal and interest are applied to those with stable income. The monthly repayment amount is the same, which is convenient for planning family expenses.

2. Legal basis: Article 20 of the Regulations on the Administration of RMB Interest Rate.

Short-term loans (with a term of less than one year, including one year) shall bear interest at the legal loan interest rate of the corresponding grade on the signing date of the loan contract. During the loan contract period, in case of interest rate adjustment, interest will not be calculated by installments.

Short-term loans are settled quarterly, and the 20th day of the last month of each quarter is the settlement date; If the interest is settled on a monthly basis, the 20th of each month is the interest settlement date. The specific interest settlement method shall be determined by the borrower and the lender through consultation. Interest that cannot be paid on schedule during the loan period shall be compounded quarterly or monthly according to the loan contract interest rate, and after loans overdue, at the default interest rate. When the last loan is paid off, the profit will be paid off with the principal.

Article 21

The interest rate of medium and long-term loans (with a term of more than one year) should be fixed at one year. The loan (including all the funds that should be allocated by installments within one year from the effective date of the loan contract) shall bear interest according to the period specified in the loan contract and the legal loan interest rate of the corresponding grade on the effective date of the loan contract, and every full year thereafter (the installment shall be based on the payment date of the first loan) shall be calculated according to the laws of the corresponding grade at that time.

Set the loan interest rate and determine the interest rate for the next year. Medium and long-term loans are settled quarterly, and the 20th of the last month of each quarter is the settlement date. The interest that cannot be paid on schedule during the loan period shall be compounded quarterly according to the contract interest rate, and after loans overdue, it shall be compounded at the default interest rate.

2. What are the terms of the loan?

Loans need to meet the following conditions:

1, repayment ability. At least one bank statement with monthly income more than twice the repayment amount in the first month is required;

2. Other conditions. The age of the borrower, the occupation of the borrower, the number of borrowers, the borrower's personal credit, the borrower's purchase of bank wealth management or other financial products, and whether the borrower has a criminal record.