First, the loan methods commonly used by investors
There are many ways to borrow money. According to my personal understanding, I list several of the most common ways. The first is the most familiar credit loan, which is a pure credit loan without any collateral, but the loan amount is not fixed. The loan amount is linked to the credit status of the lender, and generally speaking, the loan period is relatively short. The second kind of loan is a loan secured by a house. Compared with the first type, this kind of loan takes the lender's own property as collateral and mortgages the house to the borrower. This method to be discussed next is similar to housing loan, and it is also a mortgage loan. Only collateral becomes the lender's own tool. However, if investors choose vehicle mortgage loan, it is usually only to solve the short-term capital turnover problem. Because the amount of vehicle mortgage loan is determined according to the estimated value of the vehicle, there are not many platforms to carry out such loan business in the market at present.
Second, the repayment method of investors' loans
When an investor applies for a loan, both parties need to sign a loan contract. The most important item in the loan contract is the loan repayment method. After the lender chooses the repayment method, it must repay the loan on time in strict accordance with the regulations. According to my observation, the common loan repayment methods are as follows. For loans with small loan amount and short loan period, it is the best repayment method. The biggest feature of this repayment method is that the interest is not fixed, which is calculated according to the number of days of borrowing. As the name implies, the interest rate is calculated on a daily basis, and investors can pay off the loan in one lump sum at any time without paying liquidated damages. The second is equal principal and interest repayment, which means that the monthly repayment amount, including loan principal and interest, is fixed. Generally speaking, housing loans are issued in this way. Different from this way, the other way is equal principal repayment, that is, the lender distributes the total loan amount to each month on average according to the loan term, and returns the same amount of principal and the interest of the previous loan. The next repayment method, in popular terms, is to pay only interest every month, and then repay the principal after the loan term expires. If investors have enough funds, they can choose to repay part or all of the loans in advance.
Third, how do investors choose the repayment method of loans?
Relatively speaking, there are many loan methods that investors can choose. As for how to choose. Personally, investors should decide according to their own actual situation. Because different investors have different capital needs, the corresponding loan amount and loan method will be different. For each loan product, investors can choose different repayment methods. Before applying for a loan, investors should make a comprehensive evaluation of their assets and current economic strength, including deposits and disposable financial investment assets. At the same time, it is necessary to make a reasonable forecast of future income and related expenses. Take this as a coordinate to choose the appropriate loan and repayment method. If the loan amount is small, and the investor has a stable source of income, high income, low economic pressure and abundant funds, you can consider repaying in advance, which can save a lot of interest.
There are many ways for investors to repay loans, so when choosing the way, they should proceed from their own abilities and do what they can. This can not only reduce the pressure, but also avoid overdue behavior due to failure to repay on time.