Nowadays, there are more and more young people using small loans. This loan method does not require mortgage of cars and houses, and the application process is particularly simple, and the time to receive accounts is also very fast. Compared with some traditional loan methods, it is more in line with the fast-paced life of young people.

it is also very necessary to repay the loan and principal in time after obtaining the loan. So how to repay small loans, and what are the repayment methods? Let me tell you about it.

how to repay small loans

according to the current bank regulations, we must pay attention to some correct ways when repaying small loans. Pay attention to the rules of equal interest and equal principal and interest. Matching principal and interest repayment means that the total amount of repayment is the same every month, in which the principal part of repayment is gradually increased and the interest is gradually decreased.

What will happen if the micro-loan can't be repaid in time?

If it can't be repaid in time, it will encounter a high fine. Some financial institutions have to pay a penalty on the basis of default interest. These expenses add up to a huge sum, and their credit degree will be damaged. It is very difficult to apply for a credit card or a loan in the future. It will also be collected by various means. Whether banks or credit companies have their own collection systems, they will send you text messages and call you when they are due, and even people will come to collect money in time.

What are the repayment methods of small loans?

1. Fixed monthly repayment of equal principal and interest means that the total monthly repayment amount is the same, in which the principal part of monthly repayment is gradually increasing and the interest is gradually decreasing.

2. Equal interest means that the principal repaid every month is the same and the interest is the same. In this repayment method, the lender repays the principal every period, but the interest does not change with the decrease of the loan principal.

3. Matching principal repayment means that the repayment principal is the same every month, and the interest of each repayment period is gradually decreasing with the decrease of the principal owed.

But after enjoying the convenience of small loans, we must be able to repay them in time. Timely repayment can ensure a good personal credit, which is very convenient in the future loan process or when a larger credit card is used. At the same time, when repaying, you must choose the most cost-effective way for yourself. It can reduce the total amount of repayment and reduce the difficulty of slowing down. Excuse me, what are the repayment methods of small loan business?

With the development of social economy, there is an increasing demand for loans, especially small loan business. Need to remind everyone that when applying for small loan business, we must clearly understand the repayment method. Different repayment methods bear different interests:

1. Equal principal and interest: Repay the loan with the same amount every month, including principal and interest, and the proportion of principal in the repayment amount will increase and the proportion of interest will decrease;

2. average capital: The monthly repayment amount is different. In the early stage, the repayment amount is larger, and the principal accounts for the proportion. Later, the repayment amount becomes smaller, and the proportion of principal becomes smaller;

3. Pay the principal and interest monthly: the monthly repayment amount is average capital+equal interest, and the calculation formula is: monthly repayment amount = principal/repayment period+principal * monthly interest rate.

for more information about the repayment methods of small loans, go to: See more details. What are the repayment methods of small loans? Which repayment method is the most cost-effective?

for borrowers, small loans have little pressure to repay loans, so many people choose this way to lend. So, what are the repayment methods of microfinance? Which repayment method is the most cost-effective? Next, let's tell you. Generally speaking, there are three repayment modes of small loans: equal interest, average capital and equal principal and interest. Then, take a loan of 1, yuan, 24 installments, and an expected annualized monthly interest rate of 2% as an example to explain to you.

1. Monthly repayment amount of equal principal and interest = total interest = equal principal and interest repayment, which means that the total monthly repayment amount is the same, in which the principal part of monthly repayment is increasing and the interest is decreasing.

2. Equal interest monthly repayment amount = 48,/24+48, * 2% = 2,96 yuan, total interest = 23,4 yuan, etc. Equal interest means that the principal repaid each month is the same and the interest is the same. In this repayment method, the borrower repays the principal in each installment, but the interest does not decrease with the decrease of the loan principal.

Third, average capital's first repayment amount: 296 yuan, and the last repayment amount: 12, yuan. Equal principal repayment means that the monthly repayment principal is the same, and the repayment interest of each installment decreases with the decrease of the principal owed. As can be seen from the above three ways, the total interest rate of equal interest is the highest, while that of average capital is the lowest. However, the pressure of repayment in the early stage is great, and the monthly repayment amount of equal principal and interest is fixed, and the interest rate is higher than that of average capital and lower than that of equal interest. Micro-loan companies usually make unsecured loan products, and the loan companies bear greater risks and have higher requirements for the expected annualized expected return of loans. Therefore, micro-loan companies not only have relatively high expected annualized interest rates on loans, but also pay equal interest rates on repayment methods.