prepayment is generally deducted before monthly payment. The borrower needs to apply for early repayment 7-14 working days before the repayment date of each month. After the bank agrees, the borrower needs to bring relevant information to the bank to handle the formalities of repaying the loan in advance. After the formalities are completed, the borrower needs to deposit the funds for early repayment into the repayment card, and then the bank will deduct them.

common sense of loan interest calculation

(1) The interest rate conversion formula for RMB business is (note: common for deposits and loans):

1. Daily interest rate (/)= annual interest rate (%)÷36= monthly interest rate (‰)÷3

2. Monthly interest rate (‰

1. Accumulate the account balance daily according to the actual number of days, and calculate the interest by multiplying the accumulated product by the daily interest rate. The interest calculation formula is:

interest = cumulative interest product × daily interest rate, where cumulative interest product = total daily balance.

2. Transaction-by-transaction interest calculation method calculates interest one by one according to the predetermined interest calculation formula: interest = principal × interest rate× loan term, with three details:

If the interest calculation period is a whole year (month), the interest calculation formula is:

① Interest = principal × years (months) × years (months) interest rate

The interest calculation period has a whole year (months). The interest calculation formula is:

② Interest = principal × years (months) × years (months) interest rate+principal × odd days × daily interest rate

At the same time, banks can choose to convert all interest calculation periods into actual days to calculate interest, that is, 365 days per year (366 days in leap years), and each month is the actual days in the Gregorian calendar of that month. The interest calculation formula is:

Which formula is used specifically, the central bank gives financial institutions the right to choose independently. Therefore, the parties and financial institutions can agree on this in the contract.

(3) compound interest: compound interest means adding interest at a certain rate. According to the regulations of the central bank, if the borrower fails to repay the interest according to the time agreed in the contract, it will be charged with compound interest.

(4) penalty interest: if the lender fails to repay the bank loan within the prescribed time limit, the penalty interest that the bank will pay to the non-defaulting person according to the contract signed with the parties is called bank penalty interest.

(5) liquidated damages in loans overdue: the nature is the same as the penalty interest, and it is a punitive measure for the breaching party.