1, with different definitions. Matching principal and interest is also called regular interest payment, that is, the borrower repays the loan principal and interest in equal amount every month, calculates the monthly loan interest according to the remaining loan principal at the beginning of the month, and settles it every month. The biggest feature of this method is that the principal increases month by month and the interest decreases month by month. Average capital is also called unequal interest repayment method. The lender will allocate the principal to each month and pay off the interest from the previous trading day to the repayment date. In this way, the principal remains unchanged and the monthly interest decreases month by month. In this way, the principal and interest paid in advance is higher than the equal principal and interest.

2. The right person is different. Matching principal and interest is more suitable for families with fixed monthly income, especially for young people. With the increase of their work experience, they may be promoted, which means an increase in income, thus alleviating the pressure on loans and improving their quality of life. However, if you choose the average capital, the financial pressure in the early stage will be very great. Average capital is more suitable for users with certain savings or strong working ability and good future income expectation, while only those with certain financial strength can easily afford the extra payment of average capital.

3. Different interests. The total interest paid by equal principal and interest is more than that paid by the average capital method. The longer the loan term, the greater the interest difference. However, because the repayment amount is the same every month, it is suitable for family expenditure planning, especially for young people, and the principal and interest method can be adopted, because income will increase with age or promotion. The average capital paid the most in the first month, and then decreased month by month. The total amount of interest paid is less than the equal principal and interest method. However, this repayment method has a high repayment amount in the early stage of the loan period and is suitable for lenders with strong repayment ability in the early stage. The principal method can be used for the elderly, because income may decrease with age or retirement.