Calculation principle: from the beginning of monthly contribution, the bank collects the interest of the remaining principal first, and then the principal; The proportion of interest in monthly payment decreases with the decrease of residual principal, and the proportion of principal in monthly payment increases, but the total monthly payment remains unchanged.
Monthly repayment amount = [principal × monthly interest rate ×( 1+ monthly interest rate) repayment months ]/[( 1+ monthly interest rate) repayment months-1]
In which: monthly interest = residual principal × monthly interest rate of loan.
Monthly principal = monthly contribution-monthly interest.
Extended data:
Loan interest rate and interest
The General Rules for Loans stipulates that:
(1) Determination of loan interest rate: The lender determines the interest rate of each loan according to the upper and lower limits of loan interest rate stipulated by the People's Bank of China, and specifies it in the loan contract;
(II) Collection of loan interest: Lenders and borrowers shall collect or pay interest on schedule in accordance with the loan contract and relevant interest-bearing provisions of the People's Bank of China. When the loan extension period plus the original term reaches the new interest rate grade, it will be charged at the new term grade interest rate from the date of extension. Penalty interest is charged for overdue loans according to regulations.
(3) Loan interest subsidy: According to the national policy, in order to promote the economic development of certain industries and regions, the relevant departments may subsidize the loan interest. Loans subsidized by relevant departments shall be independently examined and issued by the undertaking bank, and strictly managed in accordance with the relevant provisions of the General Rules for Loans.
(4) Loan suspension, interest reduction and interest-free loans: Except as stipulated by the State Council, no unit or individual has the right to decide to stop lending, reduce interest and interest-free. The Lender shall, according to the decision of the State Council, specifically handle the cessation, interest reduction and interest-free according to the scope of duties and authority.
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