■ One is called average capital.

Calculation formula of average capital loan:

Monthly repayment amount

=

(loan principal)

/

Number of repayment months)+(principal

—

Accumulated principal repayment amount) × monthly interest rate

■ One is called equal principal and interest.

It is to repay the same amount of loans (including principal and interest) every month during the repayment period.

Monthly repayment amount

=

[loan principal × monthly interest rate ×( 1+ monthly interest rate) repayment months ]=[( 1+ monthly interest rate) repayment months-1]

Characteristics of the equal principal and interest repayment method: Compared with the average capital repayment method, the disadvantage is that there are more interests. At the beginning of repayment, interest accounts for most of the monthly contributions. With the gradual return of the principal, the proportion of the principal in the contributions is also increasing. However, the monthly repayment amount of this method is fixed, which can control the expenditure of family income in a planned way and facilitate each family to determine the repayment ability according to their own income.

Characteristics of repayment mode of average capital: Due to the fixed monthly repayment amount of principal and less and less interest, the lender is under great repayment pressure at first, but with the passage of time, the monthly repayment amount is less and less.