I. Equal principal and interest repayment method
Matching principal and interest repayment method refers to the borrower's equal repayment of loan principal and interest every month, with a large proportion of interest repayment in the early stage of the loan, a small proportion of principal, and a large proportion of principal repayment in the later stage of the loan. The characteristic of equal principal and interest repayment method is that the principal increases month by month, the interest decreases month by month and the monthly repayment amount remains unchanged.
For example, suppose the buyer borrows 500,000 yuan from the bank for 20 years. According to the current interest rate of 6.55% for commercial loans of most banks, the repayment method of equal principal and interest is chosen, with the monthly repayment amount of about 3,743 yuan and the total interest of about 398,223 yuan.
Generally speaking, matching principal and interest is more beneficial for borrowers to master and repay in full and on time, which is suitable for people with stable income and rising future income. In fact, after comparison, many people are still willing to choose equal principal and interest repayment, because the monthly repayment amount is fixed, easy to remember, and the repayment pressure is relatively balanced.
Second, the average capital repayment method.
The average capital repayment method means that the borrower repays the principal on average every month and pays off the interest between the last repayment date and the current repayment date. Compared with the same amount of principal and interest, this repayment method has a slightly lower total interest expenditure, but more principal and interest are paid in the early stage, and the repayment burden is reduced month by month.
For example, suppose the buyer borrows 500,000 yuan from the bank for 20 years. According to the current interest rate of 6.55% for commercial loans of most banks, the repayment method in average capital is selected. The repayment amount in the first month is 48 12.5 yuan, and then it is reduced by about 1 1 yuan every month, with a total interest of about 328,864 yuan.
The repayment method of average capital is suitable for people with higher income at present, who are expected to reduce their income in the future, or who are prepared to repay in advance. However, it should be pointed out that although the average principal repayment method can save some interest, people who use the equal principal repayment method can make up for the interest gap by investing the funds saved in the previous period in wealth management.
Third, repay the principal and interest in advance and repay the principal every month.
Repayment of principal and interest in advance and monthly repayment are the most common repayment methods in large installment consumer loans and credit card installment consumer loans. When the borrower obtains a loan, it pays all the interest in one lump sum (generally called installment fee), and the principal is shared and returned monthly.
What needs special attention is that this charging method actually hides its real cost. If you borrow RMB 6,543.8+0.2 million in this way, the handling fee will be 6%, and the repayment will be made in installments of 654.38+0.2 months. As the handling fee is 7200 yuan, the borrower only lends 1 12800 yuan, and returns 10000 yuan every month, which is equivalent to the annual interest rate 1 1.6%.
Fourth, repay the principal and interest in one lump sum.
One-time repayment of principal and interest means that the borrower does not repay the principal and interest monthly during the loan period, but pays the principal and interest once after the loan expires. If the loan term is less than one year (including one year), the principal and interest will often be repaid at one time, and the interest will be paid off together with the principal. This repayment method is suitable for users whose loans are used for turnover and have difficulty in repayment during turnover. It should be noted that due to the borrower's lack of repayment pressure at ordinary times, there is often a phenomenon that the loan cannot be paid off at maturity.
5. Pay interest on schedule and repay the principal when due.
Repaying the principal and interest on schedule means that the borrower repays the loan principal in one lump sum and repays the interest on schedule. The specific installment method can be negotiated with the bank, such as paying interest every month, every two months and every quarter. This repayment method is generally more common in large short-term loans. Loans with a term of more than one year can only be repaid with equal principal and interest or average capital.
This repayment method is also suitable for users whose loan funds are used for turnover and have difficulty in repayment during the turnover process.
The revolving credit line of intransitive verbs can be borrowed or returned.
Revolving loan is a special kind of loan. After approval, the bank provides a credit line to the borrower, and the borrower can borrow many times at any time within the credit line within a certain period of time and repay the loan at any time. It is very similar to credit card overdraft in credit granting and repayment, but the amount is larger.
Because the time of borrowing and repayment can be controlled by itself, borrowers can effectively improve the utilization rate of funds to reduce interest expenses. This kind of loan is easy to use and can be used as a reserve fund because it saves interest.