Monthly repayment of interest and principal repayment upon maturity means that the total interest of the loan is evenly distributed to each month. The repayer only needs to repay the interest every month, and the principal needs to be repaid in one go after the loan matures. . This repayment method is suitable for short-term loans, which usually do not exceed 1 year. It is a common repayment method in P2P financial management.

For example: if you borrow 10,000 yuan, the loan term is 1 year, and the annual interest rate of the loan is 5, and you choose to repay the principal with monthly interest repayment when it is due, then

The total Interest: 10000*5=500 yuan

Monthly interest repayment: 500/12=41.6 yuan

After the loan expires, the principal of 10,000 yuan needs to be repaid in one go.

Repayment method editor broadcast

(1) Equal principal and interest repayment: that is, the sum of the principal and interest of the loan is repaid in equal monthly installments. Housing provident fund loans and commercial personal housing loans from most banks adopt this method. In this way, the monthly repayment amount is the same;

(2) Equal principal repayment: that is, the borrower will evenly distribute the loan amount and repay it in each period (month) during the entire repayment period, and pay the same amount at the same time. A repayment method that clears the loan interest from the previous transaction day to the current repayment date. In this way, the monthly repayment amount decreases month by month;

(3) Monthly interest payment and principal repayment on maturity: that is, the borrower repays the loan principal in one lump sum on the loan maturity date [with a period of one year] Applicable to the following (including one year) loans], the interest on the loan is calculated on a daily basis, and the interest is returned on a monthly basis;

(4) Repay part of the loan in advance: that is, the borrower can apply to the bank to repay part of the loan amount in advance , the general amount is 10,000 or an integral multiple of 10,000. After repayment, the loan bank will issue a new repayment plan, in which 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 the entire loan in advance: that is, the borrower applies to the bank to repay the entire loan amount in advance. After repayment, the lending bank will terminate the loan. loan and go through the corresponding cancellation procedures.

(6) Borrow and repay at any time: The interest after borrowing is calculated on a daily basis, and one day is used to calculate the interest. You can settle the payment in one lump sum at any time without penalty

Interest rate (1) Interest rate

The ratio of interest to the total amount of loan funds within a certain period is the expression of the loan price. That is: interest rate = interest amount/loan principal

Interest rate is divided into daily interest rate, monthly interest rate and annual interest rate.

The lender determines the loan interest rate with the lending bank based on the benchmark interest rate and interest rate floating space announced by relevant laws and regulations of various countries.

(2) Benchmark interest rate

The benchmark interest rate is a universal reference rate in the financial market. Other interest rate levels or financial asset prices can be determined based on this benchmark interest rate level. Benchmark interest rate is one of the important prerequisites for interest rate marketization. Under the conditions of interest rate marketization, financiers measure financing costs, investors calculate investment returns, and management regulates the macro economy.

Objectively, it requires a generally recognized benchmark interest rate level as a reference. Therefore, in a sense, the benchmark interest rate is the core of the interest rate marketization mechanism. To put it simply, if you usually deposit money in the bank, it will give you interest. The larger the base interest rate, the more interest; the smaller the base interest rate, the smaller the interest.

How to get the lowest bank loan interest rate

1. Choose the bank with the lowest interest rate to apply for a loan

Although the central bank has issued a benchmark interest rate, the interest rates of all banks will be the same. The base interest rate is raised, and the specific circumstances of the increase vary from bank to bank. Therefore, in order to obtain the lowest bank loan interest rate, you must “compare three loans” and then choose the bank with the lowest interest rate.

2. Pay attention to personal credit information and maintain good credit information

Bank loan interest rates are calculated through computers based on personal credit information, income, work and other information. When other circumstances cannot be changed, we can only maintain a good credit score and try to pay off credit cards on time to avoid overdue payments.