The calculation method of interest = principal × interest rate × loan term and the two repayment methods:
1. Monthly payment amount of equal principal and interest repayment method = [loan principal] Deposit Monthly payment amount = (loan principal ÷ number of repayment months) + (loan principal balance - cumulative amount of principal repaid) × monthly interest rate.
The following takes housing loans as an example. According to the central bank's benchmark interest rate, the annual interest rate for commercial loans between one and five years (including five years) is 4.75%; the annual interest rate for provident fund loans for less than five years (including five years) is 2.75 %, the total interest for 3 years on a 150,000 loan can be calculated as follows:
1. Commercial loan
1. The total interest for 3 years on a 150,000 loan using equal principal and interest repayment method is 11237.42 Yuan.
2. The total interest for a three-year loan of RMB 150,000 using the equal principal repayment method is RMB 10,984.37.
2. Provident Fund Loans
1. The total interest for a 150,000 loan in three years using the equal principal and interest repayment method is 6,444.28 yuan.
2. The total interest for a three-year loan of RMB 150,000 using the equal principal repayment method is RMB 6,359.37.
Borrowers who need to apply for a loan segment must meet the following conditions:
1. Have full capacity for civil conduct and a legal and valid identity document;
2. Have the ability to repay the principal and interest of the loan;
3. Good credit status;
4. A legal and valid house sales contract has been signed, and the house purchased is for residential use;
5. Proof of a down payment that is no less than the minimum required ratio;
6. In principle, a mortgage guarantee is set with the purchased house;
7. Others specified by the bank condition.
In addition, the maximum loan period shall not exceed 30 years. The loan interest rates of all major banks shall be implemented in accordance with the relevant regulations of the People's Bank of China and other relevant regulations. The maximum loan amount shall not exceed 80% of the transaction price of the purchased house. The specific conditions shall be as follows: The relevant provisions of Muwandi’s differentiated housing credit policy are implemented.