1. Calculation principle of equal principal and interest formula: in the monthly payment, the bank collects interest first and then the principal; The interest ratio decreases due to the decrease, and the principal ratio increases due to the increase, but the total monthly contribution remains unchanged.
2. Average fund calculation formula: monthly repayment amount = monthly principal+monthly principal and interest = principal/repayment months = monthly principal and interest = (principal-accumulated repayment amount) x monthly interest rate.
legal ground
Interim Measures for the Administration of Personal Loans
Article 1 In order to standardize the personal loan business of banking financial institutions, strengthen the prudent management of personal loan business and promote the healthy development of personal loan business, these Measures are formulated in accordance with the Banking Supervision Law of the People's Republic of China, the People's Republic of China (PRC) Commercial Bank Law and other laws and regulations.
Article 2 People's Republic of China (PRC) and banking financial institutions established in China with the approval of China Banking Regulatory Commission (hereinafter referred to as lenders) shall abide by these Measures when engaging in personal loan business.
Article 3 The term "personal loans" as mentioned in these Measures refers to loans in local and foreign currencies issued by lenders to qualified natural persons for personal consumption, production and operation.
Article 4 Personal loans shall follow the principles of compliance with laws and regulations, prudent operation, equality, voluntariness, fairness and good faith.
Article 5 Lenders shall establish an effective whole-process management mechanism for personal loans, formulate loan management systems and operating procedures for each loan type, define the corresponding loan objects and scope, implement differentiated risk management, and establish an assessment and accountability mechanism for each operation link of loans.