What are the repayment methods of bank loans?
1, equal repayment of principal and interest
Matching principal and interest repayment method refers to the sum of monthly matching repayment of loan principal and interest. At present, most banks have adopted this method for housing provident fund loans and commercial personal housing loans. The repayment method of this loan is the repayment amount in the same month.
2. Repayment by average capital
The repayment method in average capital is a repayment method in which the borrower distributes the loan amount to each period (month) evenly throughout the repayment period and pays off the loan interest from the previous trading day to the repayment date. In this way, the monthly repayment amount decreases month by month.
3. Pay interest every month and repay the principal when due.
Due to the restrictions of banks, this repayment method of monthly interest and annual interest is often used by lenders with enterprises. The borrower shall repay the loan principal in one lump sum on the maturity date of the loan [the loan with a term of less than one year (including one year)], and the loan shall bear interest on a daily basis and the interest shall be repaid on a monthly basis.
4. Repay part of the loan in advance
Repay part of the loan in advance, that is to say, the borrower can repay part of the loan amount in advance when applying to the bank, and the general amount is an integer multiple of 1 1,000 or 1 1,000. After repayment, the lending bank will issue a new repayment plan, and the repayment amount and repayment period will change, but the repayment method will remain unchanged, and the new repayment period shall not exceed the original loan period.
5. Repay all loans in advance.
Repaying all the loans in advance means that the borrower can repay all the loan amount in advance by applying to the bank. After repayment, the lending bank will terminate the borrower's loan and handle the corresponding cancellation procedures.