Matching principal and interest repayment method is to repay the same amount of loans every month during the repayment period (including principal and interest, initial interest expenditure, minimum principal, and later interest payment will gradually decrease and principal will gradually increase), and the lender's monthly repayment amount is fixed.
Average capital repayment method is to repay the principal in equal amount every month, and then calculate the interest according to the remaining principal (the principal remains unchanged, the interest gradually decreases, and the loan is repaid in advance, which not only returns more principal, but also has less interest), so the monthly repayment amount of the lender is not fixed.
2. The calculation method is different.
The calculation formula of equal principal and interest is as follows:
[loan principal × monthly interest rate ×( 1+ monthly interest rate) repayment months ]/[( 1+ monthly interest rate) repayment months-1].
Calculation formula of average capital loan:
Monthly repayment amount = (loan principal/repayment months)+(principal-accumulated amount of repaid principal) × monthly interest rate.
3. Different interests.
The total amount of interest paid is different. Under the same loan amount, interest rate and loan life, the total interest of "equal principal and interest repayment method" is higher than that of "average capital repayment method".
4. Different repayment pressures
Interest accounts for a large proportion of the total repayment of the "equal principal and interest repayment method" over the years; The principal of the "average capital repayment method" is distributed equally to each time.
The monthly repayment amount of the "equal principal and interest repayment method" is the same, so the repayment pressure is the same every time when the income and expenditure and prices are basically unchanged; The "average capital repayment method" keeps the monthly repayment principal unchanged, and the interest decreases from more to less. Under the same circumstances, the pressure in the early stage is much greater than that in the later stage.
5. The number of prepayments is different.
The "average capital repayment method" allows prepayment, and there is no limit on the number of prepayment, and there is no penalty for prepayment. In other words, as long as the lender has money, he can repay the loan in advance at any time; However, the terms of the loan contract do not clearly stipulate the "repayment method of equal principal and interest".
Extended data:
Bank loan refers to an economic behavior that banks lend funds to people in need of funds at a certain interest rate according to national policies and return them within the agreed time limit. Generally, you need a guarantee, a house mortgage, proof of income and good personal credit information before you can apply.
Moreover, in different countries and different development periods of a country, the types of loans classified according to various standards are also different.
For example, industrial and commercial loans in the United States mainly include ordinary loan limits, working capital loans, standby loan commitments, and project loans. In Britain, industrial and commercial loans mostly take the form of discounted bills, credit accounts and overdraft accounts.
Due to different loan types, the conditions and materials for applying for loans are also different. The following will introduce the conditions required for several common loans.
Loan type 1: personal credit loan
Personal credit loan is a fashionable loan method, so what conditions do you need to apply for this kind of loan?
Under normal circumstances, the bank requires the borrower to have a second-generation ID card, a certificate of stable work, a certificate of income, and a certificate of loan use; Personal credit status is good; There are also certain restrictions on the income of borrowers. The average monthly income of ordinary borrowers is not less than 4000 yuan.
After submitting the relevant application materials, the bank can apply for a loan with a monthly income of 5-8 times, that is, an unsecured loan and a new loan from Ping An Bank.
Loan Type 2: Housing Mortgage Loan
The reason why more and more people choose real estate mortgage loan is that the loan interest rate is generally the benchmark interest rate, and there is less pressure to repay the loan.
So what are the conditions for applying for this kind of loan?
Generally speaking, in addition to the strong requirements on the income and credit of the lender, the service life of the house should be less than 20 years and the house area should be more than 50 square meters; The house is highly mobile;
The amount of mortgage loans shall generally not exceed 70% of the assessed value of the house.
In this way, after the relevant information is submitted to the bank for approval, you can apply for a loan with a maximum of150,000 and a maximum term of 20 years.
Loan Type III: College Students' Entrepreneurship Loan
College students pay more attention to this kind of loan than we thought. Many areas have support policies for college students' entrepreneurial loans, such as loan subsidies or interest-free loans.
So what are the conditions for applying for this kind of loan? Generally speaking, college students' business loan requirements: college students, graduates within two years; College degree or above; 18 years old or older.
Relatively speaking, the application conditions for this kind of loan are relatively loose, and then you only need to submit student ID cards, transcripts, statements and other materials to the bank, and you can get the loan after approval.
Loan Type 4: Self-operated loan
Self-employed people have become the main force of social and economic development, but many self-employed people have difficulty in financing, so many people choose this kind of loan. What are the conditions for applying for this loan?
Generally speaking, you must have full capacity for civil conduct and have a local hukou; Having a fixed business place and stable income in the local area; Can provide legal collateral (pledge); Open a deposit account with a loan bank.
After the above conditions are met, the information required by the bank can be submitted for review.
Loan Type 5: Housing Mortgage Loan
Many people buy houses and apply for mortgage loans, so what are the loan conditions?
Generally speaking: have a valid ID card and proof of marital status; Good credit record and willingness to repay; A steady income; Commercial housing sales contract or letter of intent for the purchased house; Have the ability to pay the down payment of the purchased house; Open a personal settlement account with a valid guarantee in the bank.
After meeting the above conditions, you can submit the application materials to the bank, and the bank will review and decide whether to lend money.