1. Equal interest, also known as average capital, refers to a loan method with the same repayment amount in each installment, the repayment principal in each installment is gradually reduced, and the interest is gradually reduced. Matching interest, also known as matching principal and interest, refers to the loan method with the same repayment amount in each installment, with the repayment principal gradually increasing and the interest gradually decreasing.

2. Equal interest The interest of each cycle is calculated according to the unpaid principal, so the interest of each cycle will decrease with the decrease of the unpaid principal. The interest of each cycle of equal principal and interest is calculated according to the remaining part of the repayment principal, so the interest of each cycle will gradually decrease with the increase of the repayment principal.

3. Because the repayment amount of each installment is different, the repayment cycle of equal principal and interest is also different. Under normal circumstances, the repayment period of equal interest will be shorter than that of equal interest, because the repayment amount of each period will gradually decrease with the decrease of outstanding principal, thus paying off the loan in advance. The repayment period of equal principal and interest will be longer than that of equal interest, because the repayment amount of each period is the same, so interest accounts for a large proportion in the initial repayment period, and the repayment period will be extended accordingly.