Whether it is better to provide provident fund loans with equal amounts of principal or equal amounts of principal and interest depends on the worker himself. Each has its own benefits and advantages. You still need to consider your own needs before making a choice.

The advantage of the equal principal repayment method is that as the number of repayments increases, the debt repayment pressure will gradually weaken. Under the conditions of the same loan amount, interest rate and loan period, the equal principal repayment method The total amount of interest is less than the equal principal and interest repayment method.

Advantages of equal principal and interest: This repayment method actually takes up more bank loans and takes up a longer time. At the same time, it also makes it easier for borrowers to reasonably arrange their monthly life and manage their finances (such as Renting a house, etc.) is undoubtedly the best choice for people who are proficient in investment and good at "making money with money".

Extended information:

The difference between equal principal and interest and equal principal:

Equal principal and interest repayment method, the borrower repays the loan principal and interest in equal amounts every month , where the monthly loan interest is calculated based on the remaining loan principal at the beginning of the month and is settled month by month. Since the monthly repayments are equal, the principal amount of the loan repaid is less after deducting the monthly interest payments in the initial monthly repayments of the loan. In the later stage of the loan, as the loan principal continues to decrease and the loan interest in the monthly repayment also continues to decrease, the monthly loan principal repayment will be larger.

Equal principal repayment, since the monthly principal repayment is fixed, and the monthly loan interest decreases month by month as the principal balance decreases, therefore, the equal principal repayment method requires monthly repayment in the early stage of the loan. The amount is large and will decrease monthly thereafter (monthly decrease amount = monthly principal repayment × monthly interest rate).

Baidu Encyclopedia-equal principal and interest payment

Baidu Encyclopedia-equal principal repayment method