There are three ways to repay bank loans: equal principal and interest repayment method, average capital repayment method, interest before this method, equal ratio progressive repayment method, equal progressive repayment method and combination repayment method. The borrower needs to repay the loan in the way agreed with the bank.

legal ground

Article 39 of the Interim Measures for the Administration of Personal Loans

With the consent of the lender, the personal loan can be extended.

For personal loans within one year (inclusive), the cumulative extension period shall not exceed the original loan period; For personal loans of more than one year, the cumulative extension period and the original loan period shall not exceed the maximum loan period stipulated by the loan variety.

Article 40 of the Interim Measures for the Administration of Personal Loans

The lender shall recover the loan principal and interest in accordance with the loan contract.

For loans that are not repaid according to the loan contract, the lender shall take measures to collect or restructure by agreement.

Article 674 of the Civil Code of People's Republic of China (PRC)

The borrower shall pay interest at the agreed time limit.

Article 675 of the Civil Code of People's Republic of China (PRC)

The borrower shall repay the loan within the agreed time limit. If the term of the loan is not agreed or clearly agreed, and cannot be determined according to the provisions of Article 510 of this Law, the borrower may return it at any time; The lender may urge the borrower to return it within a reasonable period of time.

There are several ways to repay bank loans.

Bank loans and repayment methods.

1. Equal repayment of principal and interest: that is, the sum of loan principal and interest is repaid by equal monthly repayment. Most banks have adopted this method for housing provident fund loans and commercial personal housing loans. So the monthly repayment amount is the same;

2. average capital Repayment Method: A repayment method in which the borrower repays the loan in every installment (month) and pays off the loan interest from the previous trading day to the repayment date. In this way, the monthly repayment amount decreases month by month;

3. Pay interest and repay the principal on a monthly basis: that is, the borrower repays the loan principal in one lump sum on the loan maturity date [loans with a term of less than one year (including one year)], and the loan bears interest on a daily basis, and the interest is repaid on a monthly basis;

4. Repay part of the loan in advance: that is, the borrower can repay part of the loan amount in advance when applying to the bank, which is generally an integer multiple of 1 1,000 or 1 1,000. After repayment, the lending bank will issue a new repayment plan, and the repayment amount and repayment period will change, but the repayment method will remain unchanged, and the new repayment period shall not exceed the original loan period.

Repay all the loans in advance: that is, the borrower can repay all the loan amount in advance when applying to the bank. After repayment, the lending bank will terminate the borrower's loan and handle the corresponding cancellation procedures.

Extended data

There are two main repayment methods of housing mortgage loan, namely, matching principal and interest repayment method (matching method) and average capital repayment method (decreasing method).

1. Matching principal and interest repayment method is to add the total loan amount (principal) of consumers and the total interest generated by the principal within the loan period to get the total principal and interest, and then divide it by the total number of months of loans to get the monthly repayment amount of consumers within the loan period;

2. The average principal repayment method is based on the monthly interest settlement, that is to say, the monthly repayment amount of consumers is composed of the monthly repayment principal plus the interest generated by the total amount of loans last month, where the monthly repayment principal is the amount obtained by dividing the total amount of loans by the total number of months of loans.

Bidding process

1. Submit application materials

2. Bank acceptance (investigation and approval)

3. Both parties sign a credit contract.

4. Apply for mortgage guarantee, and the amount will take effect.

5. When you need to use the loan, you can go through the loan and repayment procedures through bank outlets, self-service equipment and online banking.