This is definitely a good deal for the bank. My renovation loan is 4%, which means the interest of 40 yuan is one month 1 10,000.

2. Which is more cost-effective, operating loan or decoration loan?

If it is only calculated at the bank interest rate, it will definitely be more cost-effective. Generally, the annualized interest rate of decoration loans is around 3%, and the operating loans are generally between 4% and 7%.

However, the renovation loan can only be repaid in installments for five years at the longest, and the principal and interest are equal. The commercial loan can be repaid in installments for up to 20 years, or you can choose to repay the interest first and then repay the principal.

Third, is the decoration loan still a commercial loan cost-effective?

The difference between decoration loans and commercial loans is the most basic three aspects. First, the interest rate of decoration loans is lower than that of commercial loans. Second, decoration loans can only be used for decoration. Third, the years of decoration loans and commercial loans are also very different, which is not cost-effective. You must see your specific needs.

4. Which is more cost-effective, operating loan or decoration loan?

If it is only calculated at the bank interest rate, it will definitely be more cost-effective. Generally, the annualized interest rate of decoration loans is around 3%, and the annualized interest rate of operating loans is 4%-7.

However, the longest renovation loan can only be divided into 20 years, and you can also choose to repay the interest first and then the principal.