1. Calculation formula of matching principal and interest: [loan principal * monthly interest rate *( 1+ monthly interest rate) repayment months ]/[( 1+ monthly interest rate) repayment months-1]. Matching principal and interest repayment method is to repay the same amount of loans (including principal) every month during the repayment period.

2. Calculation formula of average capital: monthly repayment amount = (loan principal/repayment months)+(principal-accumulated amount of repaid principal) * monthly interest rate. Repayment method of equal principal: repay the principal every month, and then calculate the interest according to the remaining principal, so the interest will be paid more at the initial stage, so the initial repayment amount will be more, and the subsequent time will decrease monthly. The advantage of this method is that in the initial stage,

Advantages and disadvantages of equal principal and interest repayment method and average capital repayment method;

1, equal principal and interest

(1) Advantages: the monthly repayment amount is fixed, which is convenient for buyers to arrange capital expenditures;

(2) Disadvantages: There are many interests in the overall expenditure, and the total interest expenditure is almost the highest among all repayment methods.

2. Average capital

(1) Advantages: it can save a lot of interest expenses;

(2) Disadvantages: the initial repayment amount is high.

Legal basis:

Article 12 of the Interim Measures for the Administration of Personal Loans

The lender shall require the borrower to apply for a personal loan in writing, and require the borrower to provide relevant information that can prove that it meets the loan conditions.

Article 13

After accepting the borrower's loan application, the lender shall fulfill the obligation of due diligence, investigate and verify the authenticity, accuracy and completeness of the personal loan application content and related information, and form an investigation and evaluation opinion.