One-time repayment of principal and interest is a way of loan repayment, that is, when the loan expires, the lender repays the principal and interest in one lump sum on the repayment date. This repayment method requires the lender to have a fairly good repayment ability, otherwise it is easy to be unable to repay because of insufficient repayment ability. Therefore, most of the loans are now in the monthly payment mode of equal principal and interest or average capital.

Loan refers to a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. The simple and popular understanding is to borrow money with interest. Banks put concentrated money and monetary funds out through loans, which can meet the needs of social expansion and reproduction and promote economic development; At the same time, banks can also obtain loan interest income and increase their own accumulation.

There are four common repayment methods of bank loans: equal principal and interest repayment, average capital repayment, one-time principal and interest repayment and regular principal repayment.

1. Equal repayment of principal and interest: This is the most common repayment method, and general banks will also recommend borrowers to adopt this repayment method. Because this repayment method has the same repayment amount every month, it is convenient for borrowers to remember and arrange income and expenditure, and it is suitable for borrowers with stable income. However, because the interest will not decrease with the repayment of the principal, it is precisely because of this that the total interest on repayment is relatively high and it takes a long time to occupy bank funds.

2. average capital repayment method: This repayment method can save a lot of interest compared with the equal principal and interest repayment method, but the amount to be repaid in the early stage is more, so the repayment pressure in the early stage is greater, but the repayment pressure will decrease month by month, which is suitable for borrowers with better economic income.

3. One-time repayment of principal and interest: Although this repayment method is simple to operate, it is not suitable for loans with a loan term of one year or less.

4. Pay interest and repay the principal on schedule: The borrower can negotiate with the bank to specify the repayment time according to his own economic situation. Not all banks have this repayment method, which is suitable for borrowers with unstable income.