1, equal principal and interest: the monthly repayment amount is the same, but the principal part increases month by month and the interest part decreases month by month. During the repayment period, the total interest expense paid is higher than the repayment method in average capital.
2. Average capital: the monthly repayment amount decreases month by month, in which the principal part remains unchanged and the interest decreases month by month. The total amount of interest paid during the repayment period is lower than that of the matching principal and interest method, but the amount of repayment in the early stage (including principal and interest) is higher than that of the matching principal and interest repayment method.
The following pictures are for reference only.
Extended data
The simple and popular understanding of loan is to borrow money with interest. It is a form of credit activity that banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. 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.
References:
Baidu Encyclopedia: Loan