The suitable repayment method for commercial loans is the equal-amount principal repayment method. Of course, there are other repayment methods:

The equal-amount principal and interest repayment method: refers to the monthly repayment method during the loan period. The principal and interest of the loan are repaid equally in equal amounts. When encountering interest rate adjustments or early repayment, the formula should be adjusted based on the outstanding loan balance and the number of remaining repayment periods, and the repayment amount of each period should be calculated;

Equal principal repayment method: refers to the During the period, the loan principal will be repaid in equal installments every month, and the loan interest will decrease monthly with the principal. It is characterized by regular and fixed principal repayments, monthly payments and a fixed reduction in the monthly loan balance. The calculation formula is: monthly repayment amount = loan principal/number of repayment periods + (loan principal - cumulative amount of repaid principal) × monthly interest rate;

Interest first, then this method (also Called the end-of-period repayment method), the borrower repays the principal and interest of the loan on the loan maturity date and repays the interest every month. Generally applicable to loans with a term of less than 1 year (including 1 year).

The above are several repayment methods for commercial loans.