Bank loan installment repayment methods

The commercial loans you apply for at Bank of China mainly include the "equal monthly principal and interest repayment method", "equal monthly principal repayment method" and " One-time repayment upon maturity" and other repayment methods. For further information, please contact the local branch of Bank of China.

The above content is for your reference, please refer to actual business regulations.

What is loan installment? How to calculate the repayment amount

An installment loan refers to a loan that provides a certain amount of principal to the borrower, and the borrower must repay a fixed amount in installments (monthly, quarterly, yearly) until a certain year.

Usually there are two loan repayment methods:

One is called: equal principal amount. Calculation formula for equal-amount principal loans: monthly repayment amount = (loan principal/number of repayment months) (principal - cumulative amount of repaid principal) × monthly interest rate

One is called: equal-amount The principal and interest is the monthly repayment of the same amount of the loan (including principal and interest) during the repayment period. Monthly repayment amount = [Loan principal × monthly interest rate × (1-month interest rate) ＾ number of repayment months ] ÷ [ (1-month interest rate ) ＾ number of repayment months - 1 ]

Extended information:

The PMT function is used to calculate the payment amount of each installment of the returned loan based on a fixed interest rate and equal installment payment method.

Syntax: =PMT(rate,nper,pv,fv,type)

The meaning of each parameter is as follows:

Rate: loan interest rate, if the loan The annual interest is 0.06, and the monthly repayment interest is 0.06/12.

Nper: The total number of payments for the loan, usually refers to the total number of monthly payments for the loan. If a loan is repaid annually for 15 years, this item is 1512.

The present value of Pv is the total repayment. For example, when the loan is 250,000 yuan, this item should be filled in with 250,000 yuan.

Fv is the future value, which refers to the expected future value or cash balance after the loan is paid off. Usually optional, the default is 0.

Type number 0 or 1, used to specify whether the payment time of each period is at the beginning or end of the period. Type=0 or omitted, represents "end of period", Type=1 represents "beginning of period".