1, the average capital repayment method is to distribute the loan principal evenly to each month during the loan period, and the interest decreases with the principal month by month.
2. The matching principal and interest method is to divide the loan principal and interest equally into each month, and the borrower has to pay the same principal and interest every month.
The advantages and disadvantages of matching principal and interest are different from ordinary capital: at the initial stage of repayment, average capital's monthly repayment amount is greater than matching principal and interest. However, according to the whole repayment period, average capital's repayment method will save the expenditure of loan interest.