The loan term is three years, and users need to repay it once a year. This is because the loan contract stipulates that the user needs to repay it once a year. Therefore, when you sign a loan contract with the bank, you can agree on the repayment method, whether it is on the first day of each month or once a year. If you choose to pay back once a month, you must pay back every month. If it is on the first day of each year, you must pay it back at the end of the year.

The loan is three years, why should it be paid once a year?

Many people think that they will pay off the loan in one lump sum when the loan expires in the third year. However, banks do not allow loan applicants to repay their loans in this way, because it will increase the financial burden of families at the same time, and it is also possible that many loan applicants cannot afford so much money, so they must repay them once a year, which can also disperse the financial pressure of loan applicants and enable them to repay their loans.

Introduction of repayment method

In fact, the choice of annual repayment or monthly repayment depends on your financial strength. Banks will not force users to pay back money every year. You can also choose to pay back the money every month, which can reduce your financial burden. The user's repayment method is subject to the contract. Generally speaking, the loan needs to be repaid every month, but the two sides of the loan have made a special agreement, such as annual repayment, so the user can repay it once a year. The loan term is three years, and it is only repaid once a year, which requires users to have strong repayment ability, otherwise users had better choose to repay on a monthly basis to share the monthly repayment pressure.

So if you feel that annual repayment is cumbersome, you can also negotiate with the bank to change the annual repayment to monthly repayment, so that you can pay part of your salary every month to repay the bank loan. This repayment method is also better. Although the interest is more than the annual repayment, you can afford to take out less money every month.