There are several repayment methods for credit loans

Repayment methods:

1. Repayment of equal principal and interest: that is, the sum of the principal and interest of the loan is used A method of repaying the loan in equal monthly installments. Housing provident fund loans and commercial personal housing loans from most banks adopt this method. The monthly repayments are the same this way.

2. Equal principal repayment: that is, the borrower will evenly distribute the loan amount and repay it in each period (month) during the entire repayment period, and at the same time pay off the period from the previous transaction day to this repayment date. A method of repaying loan interest. This way the monthly repayments decrease month by month.

3. Monthly interest payment and principal repayment on maturity: that is, the borrower repays the loan principal in one lump sum on the loan maturity date (applicable to loans with a term of less than one year (including one year)), and the loan is calculated on a daily basis Interest is paid monthly.

4. Repay part of the loan in advance: that is, the borrower applies to the bank to repay part of the loan amount in advance. The general amount is 10,000 or an integral multiple of 10,000. After repayment, the loan bank will call it false. A new repayment plan is issued, in which the repayment amount and repayment period have changed, but the repayment method remains unchanged, and the new repayment period shall not exceed the original loan period.

5. Repay the entire loan in advance: The borrower applies to the bank to repay the entire loan amount in advance. After repayment, the lending bank will terminate the borrower's loan and handle the corresponding cancellation procedures.

6. Borrow and repay at any time: The interest after borrowing is calculated on a daily basis, and one day is used to calculate the interest. You can settle the payment in one lump sum at any time without penalty.

Extended information:

Loan interest calculation:

1. The interest rate conversion formula for RMB business is (note: common for deposits and loans):

< p>1. Daily interest rate (0/000) = annual interest rate (%) ÷ 360 = monthly interest rate (‰) ÷ 30.

2. Monthly interest rate (‰) = annual interest rate (%) ÷ 12.

2. Banks can calculate interest using the cumulative interest calculation method and the transaction-by-transaction interest calculation method.

1. The accumulation interest calculation method is based on the daily accumulated account balance based on the actual number of days, and the interest is calculated by multiplying the accumulated accumulation number by the daily interest rate. The interest calculation formula is: Interest = Accumulated Interest Accumulation Number × Daily Interest Rate, where Accumulated Interest Accumulation Accumulation Number = Total Daily Balance.

2. The interest calculation method calculates interest on a case-by-case basis according to the predetermined interest calculation formula: interest = principal × interest rate × loan period. There are three specific methods:

(1) Interest calculation If the period is a whole year (month), the interest calculation formula is: interest = principal × number of years (months) × annual (month) interest rate.

(2) If the interest calculation period has a whole year (month) and fractional days, the interest calculation formula is: interest = principal × number of years (months) × annual (month) interest rate principal × fraction Number of days × daily interest rate.

(3) The bank can choose to convert all interest calculation periods into actual days to calculate interest, that is, each year is 365 days (366 days in leap years), and each month is the actual number of days in the Gregorian calendar in that month. The interest calculation formula is: Interest =Principal×actual number of days×daily interest rate.

These three calculation formulas are essentially the same, but only 360 days are used in a year in interest rate conversion. However, when actually calculating the daily interest rate, a year will be calculated with 365 days, and the result will be slightly biased. Which formula is used to calculate the specific formula? The central bank gives financial institutions the right to choose independently. Therefore, the parties and the financial institution can agree on this in the contract.

3. Compound interest: Compound interest means charging interest at a certain rate. According to the regulations of the central bank, if the borrower fails to repay the interest within the time stipulated in the contract, compound interest will be charged.

4. Penalty interest: The lender fails to repay the bank loan within the prescribed time limit. The penalty interest imposed on the defaulter by the bank according to the contract signed with the party concerned is called bank penalty interest.

5. Liquidated damages for overdue loans: The nature is the same as penalty interest, and it is a punitive measure against the party who defaults on the contract.