Generally speaking, banks or other financial institutions will calculate the specific value of loans according to the borrower's credit situation. What percentage of the loan is usually calculated at the annual interest rate, and the borrower will repay it monthly, so the annual interest rate should be converted into the monthly interest rate. The formula is: monthly interest rate = annual interest rate ÷ 12. For example, if the loan is almost 6%, then the monthly interest rate should be 0.5%. Of course, this is only a simple calculation method, and the actual calculation method may be more complicated, which needs to be determined in combination with the specific loan plan and the borrower's personal situation.
Reducing the loan by a few percentage points can make the borrower pay less interest. When applying for a loan, the borrower can choose different loan schemes and choose the most suitable scheme according to his actual situation. In addition, improving your credit score, increasing income sources and choosing a shorter repayment period can all help borrowers reduce their loans by a few percentage points. In short, borrowers need to reduce their loans by a few percent through reasonable financial planning and practical actions, so as to reduce their repayment pressure as much as possible.