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.
Extended materials for those who need funds, it takes a long time to use money. Therefore, in order to avoid paying more interest, when making a bank loan, we should plan the loan term reasonably. It is also a loan. The longer the loan grade is chosen, the higher the interest rate will be. In other words, the longer the loan term, the different interest will be paid even if it is repaid on the same day.
If the loan term of the capital demander is 7 months, although it is only over the half-year time point of 1 month, according to the current loan interest-bearing regulations, only one-year loan interest rate can be implemented, which invisibly increases the loan interest burden of the capital demander. Generally, the term of a small loan company is 3 to 36 months, and that of a bank is calculated on an annual basis, 1 to 3 years. The mortgage type can be 10 year.
Baidu encyclopedia-loan