No, the equal principal and interest repayment method means that the borrower repays the loan principal and interest in equal amount every month during the loan period;
the choice of repayment method actually depends on your actual situation. According to the actual situation of different customers, the appropriate repayment methods are different. By comparing the monthly payment and final repayment interest of the two repayment methods, namely, matching repayment method fixes the monthly payment amount in advance under the condition that the interest rate remains unchanged, which is convenient for you to remember. The repayment method in average capital is to divide your loan principal into equal parts within the loan term, and the loan principal returned every month is the same. Because the monthly repayment interest is calculated according to the loan principal, the repayment method in average capital requires a higher repayment ability for customers at the beginning, and the initial repayment pressure will be greater, but the monthly payment will decrease month by month, and relatively speaking, the repayment pressure will become less and less. At the same time, in the case of constant interest rate and other conditions, the interest paid by the matching repayment method will be higher than that paid by the average capital repayment method. Is average capital the same as the diminishing method?
In average capital, the monthly repayment of the principal is the same, that is, the number of loans/the number of months of loans. However, the interest paid every month is different. This method has less interest on repayment, but the pressure in front is great, and almost all the principal will be paid later. Matching principal and interest means that the principal and interest are amortized equally every month, and the repayment is the same every month. This repayment method is relatively easy, but the interest paid by a * * * is more. Equal principal and interest: the principal increases month by month, the interest decreases month by month, and the monthly repayment amount remains unchanged. Matching principal and interest repayment method repays the loan principal and interest at the same amount every month, with the interest decreasing month by month and the principal increasing month by month; Average capital: The principal remains the same, the interest decreases month by month, and the monthly repayment amount decreases. Suitable for repayment in advance in a planned way. In average capital, the repayment amount is decreasing, the principal remains the same in the monthly repayment, and the interest is decreasing month by month. The repayment with less interest is average capital's repayment, but the repayment pressure of equal principal and interest should be lighter. The main difference between the two is that the former has the same repayment amount in each installment, that is, the total monthly principal plus interest is the same, and the customer's repayment pressure is balanced, but the interest burden is relatively large; The latter is also called' diminishing repayment method'. The monthly principal is the same, but the interest is different. The repayment pressure in the early stage is great, but the repayment amount in the future is gradually decreasing, and the total interest burden is less. Choosing average capital is cost-effective, because choosing equal principal and interest pays more principal and interest, while average capital pays less interest. Moreover, once the loan is repaid in advance, most of the money repaid in the early stage of repayment with equal principal and interest is interest, not principal. Is the decreasing repayment in average capital or equal principal and interest
The decreasing repayment in average capital. During the repayment period, the amount of principal returned each month is fixed, while the interest is repaid in the form of decreasing, so the total monthly repayment will show a decreasing state in the later period. For users, the equal principal repayment method can also effectively save interest, but the repayment pressure in the early stage of this repayment method is greater.
the equal diminishing repayment method refers to the repayment method in which the repayment amount of each installment in the later period of the loan period has a fixed reduction compared with that in the previous period, and the repayment amount of each installment is equal in the same period.
the equal diminishing repayment method refers to the repayment method in which the repayment amount of each installment in the later period of the loan period has a fixed reduction compared with that in the previous period, and the repayment amount of each installment is equal in the same period.
Process:
1. Apply. The customer submits a written loan application to the bank and submits relevant materials.
2. sign a contract. After receiving the notice of loan approval from the bank, the loan applicant shall sign a loan contract and a guarantee contract with the loan bank, and handle notarization, mortgage registration, insurance and other related procedures as appropriate.
3. Open an account. Customers who choose the entrusted deduction method for repayment need to sign an entrusted deduction agreement with the bank, and open a special savings passbook account or savings card or credit card account for repayment at the business outlets designated by the lending bank. At the same time, the seller should open a settlement account or deposit account in the loan bank.
4. Withdraw the loan. With the consent of the lending bank, the lending bank will directly transfer the loan to the deposit account opened by the borrower in the lending bank according to the loan contract, or transfer the loan to the deposit account opened by the seller in a lump sum or in installments.
5. repay the loan on schedule. The borrower repays the loan principal and interest according to the repayment plan and repayment method agreed in the loan contract. At present, there are two repayment methods available: entrusted deduction and counter repayment.
the equal repayment method (reduced by 1 every two years) takes the loan of 5, yuan, the term is 2 years, and the interest rate is 6.273% after 7.38% of the current mortgage interest rate standard published by the People's Bank of China as an example, and the repayment in the first month is 4,1.74 yuan.
the equal diminishing repayment method (reduced by 1 every three years), taking a loan of 5, yuan and repayment for 3 years as an example, the interest rate is calculated as 6.273% after falling by 15% according to the current mortgage interest rate standard of 7.38% published by the People's Bank of China, and the total interest paid is 558,288.4 yuan.
under normal circumstances, the down payment for first-hand houses is 2% and that for second-hand houses is 3%. The minimum down payment for the second suite is 4%, and the loan interest rate is equivalent to 1.1 times the benchmark interest rate.
the maximum term of individual first-hand housing is 3 years, and the maximum term of individual second-hand housing loan is not more than 2 years.
customers voluntarily choose to apply for insurance with insurance companies, and banks do not charge insurance fees; Banks don't charge their clients' lawyer fees. What's the difference between the equal repayment method and the decreasing repayment method? What kind do you usually use?
Equal repayment method, also known as equal repayment of principal and interest, refers to equal repayment of loan principal and interest on a monthly basis. Decreasing repayment method, also known as average capital repayment method, refers to the average monthly repayment of loan principal, and the monthly settlement and repayment of loan interest.
The difference between the repayment method in average capital and the repayment method with equal principal and interest is as follows:
1. The repayment method in average capital has the lowest total interest, but the monthly payment is changing and getting less and less.
2. Equal principal and interest repayment method, with equal repayment in each installment and more total interest. They are all loans of 1 million yuan with a term of 2 years, and the "average capital" is more than 8, less than the "matching principal and interest".
3. At present, the common repayment method is "equal principal and interest", because you just need to remember a number every month. And "average capital", which paid more at first, gradually decreased later. If the repayment ability is enough and you are not afraid of trouble, and there is no other investment channel, you can save interest, so you can choose. Or in the case of "prepayment" from the beginning, "average capital" is more appropriate to repay the "principal" first.
4. The borrower will distribute the principal evenly within each month, and at the same time pay off the interest from the previous repayment date to the current repayment date. Compared with equal principal and interest, this repayment method has a lower total interest expense, but the principal and interest paid in the early stage are more, and the repayment burden decreases month by month.
Extended information:
There are the following repayment methods in the bank:
1. Pay interest on a monthly basis and repay the principal when it is due: that is, the borrower will repay the loan principal in one lump sum on the loan maturity date [for loans with a term of less than one year (including one year)], and the loan will bear interest on a daily basis and the interest will be repaid monthly;
2. Repay part of the loan in advance: the borrower can repay part of the loan amount in advance when applying to the bank, generally the amount is 1, or an integer multiple of 1,. After repayment, the loan bank will issue a new repayment plan, in which the repayment amount and repayment period are changed, but the repayment method is unchanged, and the new repayment period shall not exceed the original loan period
3. Repay all the loans in advance: the borrower can apply to the bank.
Reference: Baidu Encyclopedia-Repaying Loans