The term "long loan and short repayment" in commercial loans means that the borrower applies for a longer loan period, but plans to repay it once in a short time. For example, the usual loan term may be 2 to 3 years, but the borrower may choose to settle it within 5 years. The advantage of this approach is that because the loan interest is calculated by compound interest, early repayment can significantly reduce the high interest expenses incurred in the later period.

for example, Mr. Zhang needs a loan to buy a school district house, but at the same time he needs capital turnover in business. He can choose the way of long-term loan and short-term repayment, and pay off the loan quickly after the funds are returned to avoid additional compound interest costs. However, this kind of prepayment is not without cost, and banks usually charge a certain amount of liquidated damages to make up for the economic losses caused by the borrower's prepayment.

regarding the repayment method, for example, the loan amount is 2,7 yuan, of which the principal may account for 4 yuan to 5 yuan, and the rest is interest. If the repayment is made in advance, the remaining amount will be recalculated and the interest will be reduced. Matching principal and interest and average capital are two common repayment methods. The former has a relatively stable monthly repayment amount, while the latter reduces the principal month by month. The interest rate is usually adjusted according to market changes.

when applying for a commercial loan, the borrower needs to meet certain conditions, such as age, income, credit history, etc. In addition, the choice of loan repayment methods, such as equal interest rate reduction or equal principal and interest, needs to be understood in detail.