Principal settlement means that the lender distributes the principal to each month and pays off the interest from the previous trading day to the repayment date.

Compared with the matching principal and interest, the total interest cost of this repayment method is lower, but the principal and interest paid in the early stage are more, and the repayment burden is reduced month by month.

This method is very suitable for people with higher income, but it is predicted that their income will decrease in the future.