1, equal principal and interest repayment method, that is, the borrower repays the loan principal and interest in equal amount every month, in which the monthly loan interest is calculated according to the actual remaining loan principal and settled every month.
Because the monthly repayment amount is equal, in the initial monthly repayment of the loan, after excluding the monthly settlement interest, the loan principal is less; In the later stage of the loan, due to the continuous reduction of the loan principal, the loan interest is continuously reduced in the monthly repayment amount, and the monthly repayment of the loan principal is more.
2. Average capital repayment method
Because the monthly repayment of the principal is fixed, and the monthly loan interest decreases with the decrease of the principal balance, the average capital repayment method has a large monthly repayment amount at the initial stage of the loan, and then decreases month by month, so the average capital repayment method has great pressure in the early stage.
3, the difference:
① The total interest is different: with the same term, interest rate and loan amount, the interest of equal principal and interest is much higher than that of average capital;
② Different repayment pressures: On average, there is a large amount of money to be repaid every month in the early stage of capital, but the amount to be repaid in the later stage is less and less, so the repayment pressure in the early stage is high and the repayment pressure in the later stage is low. Equal principal and interest every month, moderate pressure;
③ The cost of prepayment is different: the average capital pays more principal in the early stage, and the equal principal and interest pays more interest in the early stage. Therefore, if prepayment is considered, the shorter the loan time, the more cost-effective the average capital will be than the equal principal and interest.
Reply time: 202 1-04-07. Please refer to the latest business changes announced by Ping An Bank in official website.
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