The characteristic of equal principal and interest repayment method is to repay equal principal and interest every month, which is convenient for budgeting. In the initial repayment period, interest accounts for most of the monthly contributions, and the proportion of principal in the contributions increases with the gradual return of principal. The repayment method in average capital is characterized by repaying the same principal every month and calculating interest on a daily basis according to the balance of loan principal. The early repayment is large, and the monthly repayment is gradually reduced. Because it is decreasing, the monthly repayment needs to be calculated carefully.
If two-dimensional coordinates are established with time as the abscissa and money as the ordinate, the contribution curve of the equal method is a straight line balanced with the abscissa, while the decreasing method is a downward curve. If the income curve shows an upward trend during the repayment period, it is more in line with the curve of equal principal and interest repayment method, and if the income curve shows a downward trend, it is more in line with the curve of average capital repayment method.
1. According to the repayment method of equal principal and interest, the principal of the loan repaid by the customer gradually increases and the interest gradually decreases, but the total amount remains unchanged; According to the repayment law of average capital, the monthly loan principal repaid by customers remains unchanged, and the loan interest gradually decreases. compare
Compared with the two methods, because the repayment method of equal principal and interest occupies relatively more bank funds, it pays more interest and the bank does not get additional interest income.
2. The advantages and disadvantages of the two repayment methods are mainly as follows: the repayment method of equal principal and interest is adopted, and the initial repayment pressure of customers is relatively small, and the repayment amount is certain and intuitive, which is convenient for customers to better understand their income and expenditure and flexibly arrange their own financial plans; However, using the average capital repayment method, customers repay the principal for the first time more than the equal principal and interest repayment method, and the repayment pressure is greater; In addition, due to the repayment method of equal principal and interest, the repayment of loan principal is mainly concentrated in the later stage of the loan, so it is more cost-effective to use the repayment method of equal principal and interest when the loan interest rate drops.