Deferred principal and interest payments

The state has introduced two monetary policy tools to support the development of the real economy. One is the deferred principal and interest payments for small and medium-sized enterprises, and the other is for small and micro enterprises. credit loan. When implementing the specific implementation, our grassroots level should focus on four aspects, mainly including deferred principal and interest payments, credit loans, medium and long-term manufacturing loans, and first-time mortgage loans.

So what is deferred principal and interest payment? Mainly includes 6 points. The first is to repay the old and borrow the new, which means that after the customer repays the loan, it must be disbursed within three working days; the second is to extend, which is to simply extend the term of the loan backward; the third is to borrow the new and repay the old, and the original loan will not be returned if the original loan is not returned. Under certain circumstances, new loans are issued to repay the original loans. Usually, such loans are overdue; fourth, the repayment method is adjusted, such as changing the original monthly interest payment method to quarterly interest payment or adjusting the principal repayment method. The fifth is to renew the loan without capital, which is also to issue a new loan for repayment when the original loan is not repaid, but in this case it is used to support enterprises with better operating conditions and the loan is not overdue; the sixth is The use of other on-lending funds for re-lending mainly refers to various government-type on-lending funds.

This time the country not only issued policy tools, but also put forward proportional requirements for the implementation of the system. In particular, the deferred repayment of principal and interest requires most banks to reach a ratio of 80%. What does repayment of principal and interest mean?

It means to borrow money from others, and when you repay the money, you have to pay back both the principal and the interest, which means that the principal is paid with interest.

There are two ways to repay principal and interest:

1. One-time repayment of principal and interest, also known as one-time repayment of principal and interest upon maturity, means that the borrower pays the principal and interest in one lump sum when the loan is due. Instead of repaying the principal and interest on a monthly basis during the period, the principal and interest will be returned in one go after the loan matures. This is the method currently used for personal housing loans within a one-year period (including one year) promulgated by the People's Bank of China.

2. Repayment of principal and interest in equal amounts, also known as regular interest payment, means that the borrower repays the principal and interest of the loan in equal amounts every month. The monthly loan interest is calculated based on the remaining loan principal at the beginning of the month and is settled month by month. clear. Since the monthly payments are equal, the monthly payments are made during the early years of the loan.

Extended information

Calculation of principal and interest repayment:

Calculation of principal and interest repayment refers to the calculation of repayment of principal and interest on a loan according to the loan repayment conditions. The calculation of principal and interest repayment provides an important basis for the economic evaluation of the project and therefore plays an important role in the feasibility study. The calculation of principal and interest repayment should be done well in the capital planning, which should not only comply with business practices, but also meet the operational feasibility.

The specific calculation methods generally include: one is to add the interest during the construction period to the principal, and then repay the principal in equal or unequal installments, and at the same time repay the decreasing interest year by year; the other is to add the interest during the construction period to the principal. The total principal amount of interest during the construction period is calculated using compound interest rates, and the principal and interest are repaid in equal installments over the years.

The first method has a smaller total amount of principal and interest repayment, but the initial repayment amount is large and then decreases year by year, which is exactly the opposite of the trend of capital income in the initial stage of production.

The second method requires a larger total amount of principal and interest repayment, but because it is repaid in equal amounts, the unit where the project is located is more adaptable.

In recent years, our country has engaged in compensation trade, and a third method has emerged for the repayment of principal and interest on foreign loans, that is, using the products after production to repay the products in an agreed-upon quantitative or indefinite amount year by year. Or the market price of the current year is converted into principal and interest repayment, and both borrowing and repayment are settled in foreign exchange. The calculation of debt repayment should be based on the national standpoint. At the same time, the interest rate stipulated in the document should not be simply used. Instead, the additional amount should be calculated based on the actual expenses incurred and then calculated. The difference between loan renewal without principal repayment and deferred principal and interest payment

The extension time is different. Renewal of the loan without principal repayment refers to re-performing all mortgage procedures every time the loan expires, extending the loan term, and only the interest needs to be paid off before the principal can continue to be loaned, so it is also called an extended loan.

Deferred repayment of principal and interest means that the repayment method selected by the user when taking the loan is repayment of principal and interest, so the principal and interest need to be repaid in one lump sum on the due date. Delaying repayment of principal and interest actually extends the repayment period. , the time for repayment of principal and interest is postponed. The only difference between the two is that the extension time is different, and the loan must be repaid according to the actual situation.