What are equal increasing repayment method and equal decreasing repayment method?
In fact, the equal increasing repayment method and the equal decreasing repayment method are essentially equal principal and interest repayment methods. As for the difference, in the subdivided repayment time unit, the monthly repayment amount is equal to increase or decrease.
Equal incremental repayment method: the monthly repayment amount will be increased by a fixed amount at fixed intervals.
Suitable for young people with weak repayment ability in the early stage, but their income curve is on the rise;
Equal decreasing repayment method: the opposite of equal increasing repayment method.
It is more suitable for middle-aged people who are relatively rich at present, but their expected income will decrease in the future.
How to calculate interest by equal increase and equal decrease repayment methods?
Take a loan of 500,000 yuan with a term of 30 years as an example. If the principal and interest are repaid in equal amount, the monthly repayment amount of the borrower is 2,653.63 yuan (calculated according to the benchmark interest rate of the loan).
Equal principal and interest repayment calculator. & gt& gt
If you choose the equal incremental repayment method, it is assumed that the 30-year repayment period is divided into 10 installments, and 100 is increased every three years, and the repayment amount in the first month is about 2300 yuan. After 3 years, the monthly repayment will be 2600 yuan, and so on. As for interest calculation, it is suggested to use relevant calculators (such as the equal ratio progressive calculator of Ping An Bank) and input relevant data for calculation.
However, at present, equal increase and equal decrease repayment methods are rarely mentioned. For young customers who have insufficient repayment ability in the early stage, they can choose the repayment method of interest loan or balloon loan.