2. In terms of financial management, the equal principal and interest repayment method pays more interest, but for buyers with better financial management channels, the equal principal and interest repayment method makes the disposable funds in their hands have higher time value. Therefore, when the profit rate >: under the loan interest rate, the repayment method of equal principal and interest is better than that of average capital. Moreover, under the same income, most of the matching loan principal and interest are higher than the average capital.
What are the repayment methods?
1. Matching principal and interest repayment method: Matching principal and interest repayment method refers to the equal repayment of loan principal and interest every month during the loan period. In case of prepayment due to interest rate adjustment, the repayment amount of each installment shall be calculated according to the adjustment formula of outstanding loan balance and remaining repayment periods.
2. average capital Repayment Method: average capital Repayment Method means to repay the loan principal in equal amount every month within the loan term, and the loan interest decreases with the principal month by month. It is characterized by regular and fixed repayment of principal and monthly payment, and the monthly loan balance is reduced.
3. Equal-ratio progressive repayment: the borrower repays in a certain proportion (repayment amount by installments) in each time period, in which the amount returned in each time period includes the interest and principal payable in that time period, and repays in installments according to the repayment interval, and pays off all the principal and interest before the loan deadline. Usually, the proportion of installment repayment is controlled between 0 and (+/- 100)%, and the principal or interest calculated in any installment repayment plan shall not be less than zero.
4. Equal progressive repayment method: It is similar to the equal progressive repayment method, except that the agreed repayment "fixed proportion" in each time period is changed to "fixed amount". Divided into equal increasing repayment method and equal decreasing repayment method: customers with increased income can take measures such as increasing progressive amount and shortening interval to reduce interest burden; Customers with declining income levels can take measures such as reducing the progressive amount and expanding the progressive range to reduce the repayment pressure.
5. Combination repayment: Combination repayment refers to the repayment method of repaying the loan principal in installments and calculating the interest according to the actual occupation time of funds. That is, according to the borrower's future income and expenditure, all the loan principal is divided into several repayment stages in proportion, and then the repayment period of each stage is determined. During the repayment period, it is agreed that the monthly repayment amount of the principal to be repaid in each installment shall be calculated in the form of equal principal and interest within the specified period, and the unpaid principal shall bear interest on a monthly basis, and the sum of the two parts forms the monthly repayment amount.