The expression of long-term loan repayment period is:

Among them:

Ia-the sum of long-term loan principal and interest during the construction period;

Pa-repayment period of long-term loans (from the year when the loans are started, it should be indicated when they are put into production);

RT- funds available for repayment in the second year, including profits, depreciation, amortization and other repayment funds.

Extended data:

1, loan term division

(1), short-term loans with a term of 1 year or 1 year (temporary loans for more than 3 months and less than 6 months), characterized by short term, low risk and high interest rate. They are usually issued in the form of "loans", which are mainly used to meet the needs of borrowers for short-term funds.

(2) The term of medium-term loans is over 1 year (excluding 1 year) and under five years (including five years), which is characterized by long term, high interest rate, poor liquidity and high risk.

(3) Long-term loans are loans of more than 5 years (excluding 5 years).

2. Determinants

The length of the loan period is a factor that determines the interest rate. The longer the general loan term, the higher the interest rate. Medium-and long-term loans are generally investments in national assets such as equipment loans, and short-term loans are used for working capital turnover.

In the financial system of capitalist countries, there are financial institutions specializing in medium and long-term credit. With the rapid development of science and technology, the cycle of equipment renewal in enterprises has been shortened, and the demand for bank funds has increased sharply. On the other hand, the competition in the banking industry is intensified, the banking business is diversified, and the medium and long-term loan business of commercial banks is also growing rapidly.

Baidu Encyclopedia-Long-term loan repayment period