The replacement of principal and interest by rural credit cooperatives means that the borrower borrows the original loan principal and interest at a certain interest rate and time limit through consultation with the rural credit cooperatives, and repays the original loan principal and interest with the newly borrowed funds.

The advantage of this is that it can reduce the interest rate and monthly payment of the original loan and reduce the repayment pressure of the borrower. However, it should be noted that the replacement loan also needs to bear certain formalities and interest expenses.