Matching principal and interest repayment is a popular repayment method at present, and it is also recommended by banks.
This is a repayment method with a fixed amount of expenditure. That is, the borrower repays the loan principal and interest with the same amount in each installment, and the repayment amount in each installment includes the principal to be repaid in the current period and the interest to be borne. During the whole repayment period, the monthly repayment amount is fixed.
Matching principal repayment means that the borrower distributes the loan amount evenly throughout the repayment period and repays it monthly, and at the same time pays off the interest generated by the loan balance from the previous repayment date to the current repayment period.
The loan principal is divided equally throughout the repayment period, and the interest is calculated daily according to the loan principal balance. The monthly repayment amount is gradually decreasing, but the rate of repayment of principal remains unchanged.