The average monthly repayment amount of capital is different, showing a state of decreasing month by month. Matching principal and interest means the same monthly repayment amount. In essence, the proportion of principal increases month by month, the proportion of interest decreases month by month, and the monthly repayment amount remains unchanged.

The difference between the two:

1, the monthly repayment amount is different: the monthly repayment amount of average capital is decreasing, the average capital repayment will fix the repayment amount of the same principal every month, and the interest payment will decrease with the passage of months. Matching principal and interest means paying the same amount every month, and interest accounts for a large proportion of the amount repaid in advance.

2. The interest generated is different: the total interest of equal principal repayment is less than the total interest of equal principal repayment. For example, the loan is 500,000 yuan, the loan term is 1 year, and the annual interest rate of the loan is 4.35%. The total interest of equal principal repayment is 2356.25 yuan, and the total interest of equal principal repayment is 237 1.88 yuan.

3. Suitable for different people: General capital is suitable for people with higher income in the early stage and lower income in the later stage. Matching principal and interest is suitable for people with a fixed monthly income.

4. The advantages and disadvantages are different: the advantage of average capital is that it can save more interest, which is conducive to early repayment. The disadvantage is that the pressure of early repayment is great. The advantage of matching principal and interest is that the monthly repayment pressure is less, and the disadvantage is that more interest needs to be paid, which is not conducive to early repayment.