If the user agreed on a fixed interest rate when signing the loan contract, then the loan with equal principal and interest repayment is a fixed interest rate. And the loan contract stipulates a floating interest rate, then the loan with equal principal and interest repayment is a floating interest rate. Matching principal and interest is a repayment method, which will not affect the loan interest rate, but only the content agreed in the contract.
Ordinary loans are generally fixed interest rates, and users apply for mortgages. The mortgage interest rate is a floating interest rate formed by LPR+ basis points. At this time, the equal principal and interest repayment, mortgage is a floating interest rate.
Equal principal and interest repayment method: that is, the sum of loan principal and interest is repaid in equal amount every month. Most banks have adopted this method for housing provident fund loans and commercial personal housing loans. So the monthly repayment amount is the same;
Average capital repayment method: that is, the borrower repays the loan in every installment (month) during the whole repayment period, and at the same time pays off the loan interest from the previous trading day to the repayment date. In this way, the monthly repayment amount decreases month by month;
Loan means that banks, credit cooperatives and other institutions lend money to units or individuals who use money, and generally agree on interest and repayment date.
Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. Banks put concentrated money and monetary funds out through loans, which can meet the needs of social expansion and reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation.
Review risk
The emergence of loan risk often begins at the stage of loan review. Based on the disputes in judicial practice, we can see that the risks in the loan review stage mainly appear in the following links.
The content of the review omits the loan examiners of the bank, resulting in credit risk. Loan review is a meticulous work, which requires investigators to systematically investigate and inspect the qualifications, qualifications, credit and property status of loan subjects.
In practice, some commercial banks do not have due diligence, and loan examiners often only pay attention to the identification of documents, but lack due diligence. It is difficult to identify the fraud in the loan and it is easy to cause credit risk.
Many wrong judgments are due to the fact that banks did not listen to experts' opinions on relevant contents, or professionals made professional judgments. In the process of loan review, we should not only find out the facts, but also make professional judgments on relevant facts from legal and financial aspects. In practice, most loan review processes are not very strict and in place.
Interest refers to the remuneration paid by the borrower to the lender in order to obtain the right to use the funds, which is the use price of the funds in a certain period (that is, the loan principal). The loan interest can be calculated in detail by the loan interest calculator.
Is the equal principal and interest fixed or floating?
The repayment method of equal principal and interest can be fixed interest rate or floating interest rate, and the choice of fixed interest rate or floating interest rate is entirely according to your own personal wishes. The interest rate of new commercial personal housing loans issued after 20 19 10/8 is formed by adding the LPR of the corresponding period in the latest month as the pricing benchmark.
On August 25th, 2020, 12, five state-owned banks, namely, industry, construction, agriculture, China and postal service, announced at the same time that they would adjust the mortgage interest rate to LRP interest rate, and from August 25th, they would switch to LPR pricing mode in batches. After the batch conversion is completed, if there is any objection to the conversion result, it can be transferred back through mobile banking or negotiated with the loan handling bank before 65438+February 3, 20201.
Is equal principal and interest a fixed interest rate?
Matching principal and interest is a repayment method, which will not affect the loan interest rate, but only the content agreed in the contract.
If the user agreed on a fixed interest rate when signing the loan contract, then the loan with equal principal and interest repayment is a fixed interest rate. And the loan contract stipulates a floating interest rate, then the loan with equal principal and interest repayment is a floating interest rate.
Ordinary loans are generally fixed interest rates, and users apply for mortgages. The mortgage interest rate is a floating interest rate formed by LPR+ basis points. At this time, the equal principal and interest repayment, mortgage is a floating interest rate.
Matching principal and interest refers to the repayment of the same amount of loans (including principal and interest) every month during the repayment period, which is a repayment method of loans. This is a concept different from average capital. Although the monthly repayment amount may be lower than the average capital repayment method at the beginning, the interest paid in the end will be higher than the average capital repayment method commonly used by banks.