Bank loan refers to an economic behavior that banks lend funds to people in need of funds at a certain interest rate according to national policies and return them within the agreed time limit. But it should be noted that no matter where you apply for a loan, you always have to pay it back. So, how is the bank loan repaid?

How is the bank loan repaid?

How to repay the bank loan is inseparable from the selected loan period. If the borrower applies for a short-term loan, that is, within one year, he can choose one-time repayment of principal and interest and quarterly repayment of principal and interest. If the applicant applies for a medium-and long-term bank loan, he needs to choose installment repayment, that is, the average principal repayment method and the equal principal and interest repayment method. The repayment method in the average capital is under great pressure in the early stage, while the repayment method with equal principal and interest has the same repayment amount every month, so we should choose it reasonably according to our actual situation.

There are many ways to repay the loan. Generally, short-term loans will be repaid in one lump sum, medium-and long-term loans will be repaid in installments, and interest will be paid quarterly (or monthly). Mortgage loan is equal repayment of principal and interest, that is, interest and principal are combined and a fixed amount is repaid every month. It depends on the contract.

1, average capital

In the first month, average capital made the largest repayment, and the repayment amount decreased in the following months. Generally speaking, the early repayment pressure is greater, and the late repayment amount is less and less.

2. Equal principal and interest

Matching principal and interest repayment until the end of repayment, the loan amount to be repaid every month is the same, suitable for borrowers with stable income.

3. Equal proportion series

Repay the loan in equal increments every month. Equal progressivity can be increased or decreased. The borrower will repay the loan according to the contract until the loan is paid off.

4. Combination repayment

Borrowers applying for portfolio loans should calculate the loan interest separately, choose the repayment method separately, and repay in the agreed way.

5. Pay interest on a monthly basis and repay the principal when due.

The borrower repays the interest required for the loan first, pays the interest every month, and repays the principal in one lump sum when the loan expires.

6. Pay the interest first, and then make an equal monthly payment.

A repayment method that borrowers who apply for housing mortgage loans can choose. The borrower can repay the interest of the loan before moving into the house, but not the principal. After moving in, they can repay the loan by means of average capital or equal principal and interest.

7. Credit installment repayment

The loan term is divided into two stages, the proportion of principal repayment in the two repayment stages is determined, and the monthly repayment amount is calculated according to the equal principal and interest in the two stages.

How to repay the bank loan?

There are three ways to repay bank loans: equal principal and interest repayment method, average capital repayment method, interest before this method, equal ratio progressive repayment method, equal progressive repayment method and combination repayment method. The borrower needs to repay the loan in the way agreed with the bank.

legal ground

Article 39 of the Interim Measures for the Administration of Personal Loans

With the consent of the lender, the personal loan can be extended.

For personal loans within one year (inclusive), the cumulative extension period shall not exceed the original loan period; For personal loans of more than one year, the cumulative extension period and the original loan period shall not exceed the maximum loan period stipulated by the loan variety.

Article 40 of the Interim Measures for the Administration of Personal Loans

The lender shall recover the loan principal and interest in accordance with the loan contract.

For loans that are not repaid according to the loan contract, the lender shall take measures to collect or restructure by agreement.

Article 674 of the Civil Code of People's Republic of China (PRC)

The borrower shall pay interest at the agreed time limit.

Article 675 of the Civil Code of People's Republic of China (PRC)

The borrower shall repay the loan within the agreed time limit. If the term of the loan is not agreed or clearly agreed, and cannot be determined according to the provisions of Article 510 of this Law, the borrower may return it at any time; The lender may urge the borrower to return it within a reasonable period of time.

What do citizens borrow money for?

For bank mortgage lenders, repayment usually begins the next month after the bank lends money. Banks will not pay attention to the lender's loan purpose and income. As long as the monthly payment is paid back on time.

Loan repayment method:

There are six ways:

1. The method of paying interest first and then repaying the principal is also called the final settlement method, which means that the borrower pays off the loan principal and interest on the loan maturity date and repays the interest every month. Generally applicable to loans with a term of 1 year (inclusive).

2. Equal principal and interest repayment method

Refers to the average monthly repayment of loan principal and interest within the loan term.

3. The average capital repayment method refers to the equal repayment of the loan principal every month during the loan period, and the loan interest decreases with the principal month by month. It is characterized by regular and fixed repayment of principal, monthly payment and reduction of monthly loan balance.

4. Equal-ratio progressive repayment method: the borrower repays the loan with a certain proportion of progressive amount (installment amount) in each time period, in which the repayment amount in each time period includes the interest and principal due in that time period, and is repaid in installments according to the repayment interval, and all the principal and interest are paid off before the loan deadline.

5. The equal progressive repayment method 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 can reduce the repayment pressure by reducing the progressive amount and expanding the progressive range.

6. The combined repayment method is a repayment method that repays the loan principal in installments and calculates the interest according to the actual occupation time of funds. That is, first, 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, the monthly repayment amount of the principal agreed to be repaid in each installment is calculated in the form of equal principal and interest within the specified period, and the unpaid principal bears monthly interest, and the sum of the two parts forms the monthly repayment amount.