If you compare the annual interest rate of 15.6% with the interest rate of "routing loans" on various online lending platforms, it is nothing at all. However, if we compare the mortgage interest rates of major commercial banks (more than five years), it is obviously more than twice, because the current domestic bank mortgage interest rates are based on LPR, and the loan market quotation (LPR) 165438 released on October 20, the interest rate over five years is 4.80%.
In fact, the annual interest rate of 15.6% is basically the loan interest rate in the middle and upper reaches, even lower than the annual interest rate of ant borrowing, because the daily interest rate of ant borrowing is generally between 1 1.5 and 15000, which translates into the annual interest rate, that is, the highest annual interest rate is18.
Of course, I know that most users who regularly use Ant Financial can usually enjoy a daily interest rate of around 13000 or even lower. For example, a small number of users can have an annual interest rate of 20,000, which is 0.02%, which is 7.2%.
However, if this annualized interest rate is the interest rate agreed by both private lenders and borrowers, it is still within the scope of legal protection, because it does not exceed 24%, and such interest rate level is the most common except bank loans. In short, when you need money urgently, it is cost-effective if you can get it at the interest rate of 15.6%.
No matter which repayment method, there is a * * * similarity, that is, the monthly repayment amount (also called monthly payment) includes principal repayment and interest repayment:
Monthly repayment amount = current month principal repayment amount+current month interest formula
Among them, repayment of the principal is the real repayment of the loan. After monthly repayment, the remaining loan principal will be reduced accordingly:
Remaining principal of current month = remaining principal of current month-repayment of principal of current month
Until the last month, the principal was paid off in full.
Interest repayment is used to repay the interest generated by the remaining principal of this month. At the time of monthly repayment, the interest generated by this month's principal must be paid off:
Current month's interest = last month's remaining principal × monthly interest rate
Where the monthly interest rate = annual interest rate12. It is said that some banks, such as Industrial and Commercial Bank of China, used Sun Tzu's algorithm in the calculation method of equal repayment of principal, which is not mentioned here for the time being.
As can be seen from the above interest repayment formula, the monthly interest is directly proportional to the remaining principal of the previous month. Because there are more residual principal in the early stage of the loan, it can be seen that there are more monthly interest in the early stage of the loan, and the repayment interest accounts for a heavier share of the monthly repayment amount. With the increase of repayment times, the remaining principal will gradually decrease, and the monthly repayment interest will also decrease accordingly. Until the last month, the principal is paid off in full, and the interest is paid for the last time. Next month, there will be neither principal nor interest. At this point, all loans will be repaid.
The repayment principle of the two loans is as described above. The above two formulas are the basic formulas of monthly repayment amount, and other formulas can be derived. Below, based on these two formulas, we will deduce the specific calculation formulas of two repayment methods.
1. average capital repayment method
The repayment method in average capital is relatively simple. As the name implies, in this way, the principal repayment amount of each repayment is the same. Therefore:
Current month's repayment amount = total loan amount ÷ repayment times.
Current month's interest = remaining principal of last month × monthly interest rate = total loan ×( 1- (repayment months-1)÷ repayment times )× monthly interest rate.
Monthly repayment amount = monthly repayment amount+monthly interest = total loan amount ×( 1÷ repayment times +( 1- (repayment months-1÷ repayment times) × monthly interest rate)
Total interest = sum of all interests = total loan amount × monthly interest rate × (repayment times -( 1+2+3+)...+ repayment times-1)÷ repayment times)
Where 1+2+3+