There are two ways:

1. average capital repayment method: divide the loan amount into n installments according to the number of repayment periods, and multiply the unpaid principal amount of each installment by the loan interest rate until the current interest is paid off;

Two. Matching principal and interest repayment method: the principal and interest are annualized during the loan period, and the sum of principal and interest in each period is equal. The calculation of interest is complicated, and the interest of each period is not equal, but the sum of principal and interest of each period is equal. The first interest is the principal amount occupied multiplied by the loan interest rate, and the principal repaid in the first period is the equivalent annuity repaid in each period minus the first interest; The calculation of the second period interest is to subtract the principal repaid in the first period from the total loan principal to get the second period principal, and then multiply it by the loan interest rate to get the second period interest payable, and so on.

Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. Banks put concentrated money and monetary funds out through loans, which can meet the needs of social expansion and reproduction and promote economic development; At the same time, banks can also obtain loan interest income and increase their own accumulation.