2. "Interest repaid with principal" means that the borrower should pay off the interest generated by the loan while returning the principal of X loan.
1, popular understanding
"Quarterly interest settlement" means quarterly interest settlement. When the bank stipulates that the loan reaches a certain amount (the specific provisions of each bank are different), the borrower and the lender agree that the interest of the loan will be settled quarterly, and the 20th of each quarter is determined as the interest settlement date, that is, the 20th of March, June, September and1February. On this day, the borrower needs to pay the interest on the loan to the bank, which is also a way for the bank to reduce the loan risk.
2. The way of "profiting from capital"
"Interest with principal" is a repayment method, that is, the borrower has to settle the interest generated by the loan while returning the principal of X loans.
3. The difference between "quarterly interest settlement" and "interest settlement with principal"
The contents of "quarterly interest settlement" and "interest paid with principal" do not stipulate to pay interest quarterly, but stipulate to calculate interest once every quarter, and then pay off all principal and interest on the agreed repayment date.
Quarterly interest settlement is a way to repay the interest of bank loans, that is, quarterly interest settlement, interest settlement before the 20 th of each quarter, and repayment of principal at maturity; Repayment with interest refers to repayment of principal and interest in one lump sum at maturity.
4. Expression of monetary lending relationship:
Generally speaking, this is a special agreement on the way of repayment of principal and interest in the monetary lending relationship. That is, the borrower pays off the loan cost and interest in one lump sum on the loan maturity date. According to the provisions of the Notice of the People's Bank of China on the Calculation and Settlement of RMB Deposit and Loan Interest (Yinfa [2005] 129) on the calculation and settlement of deposit interest of financial institutions, the interest of time deposits of units and individuals shall be paid off together with the principal on the deposit maturity date.