I paid back a loan of 47,000 yuan. Why did I deduct more than 4,000 yuan from the total loan? The reasons are as follows. The loan amount is high, the prepayment interest rate is high and the principal is low. Loan means that banks, credit cooperatives and other institutions issue loans to units or individuals who use money, and agree on interest and repayment date. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. Banks put concentrated money and monetary funds out in the form of loans, which can meet the demand of supplementary funds for social expansion and reproduction.