Equal installments of principal and interest and equal installments of principal repayment both require the repayment of principal and interest at the same time. Equal installments of principal and interest mean that the monthly repayment amount is the same, but the interest is more at the beginning and the principal is less. The repayment method of equal principal amounts is to divide your loan principal into equal installments during the loan period. The portion of the loan principal repaid each month is the same, with the interest higher first and then the lower.

Because the monthly interest repayment is calculated based on the loan principal, the "equal principal" repayment method has higher requirements on the customer's initial repayment ability, and the initial repayment pressure will be greater. However, the monthly payment decreases on a monthly basis, and relatively speaking, the pressure of repayment will become less and less in the later stages. At the same time, when other conditions such as interest rates remain unchanged, the interest portion of the final repayment of the loan will be higher with the "equal principal and interest" repayment method than with the "equal principal and interest" repayment method.

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