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Which repayment method is better?
I believe that everyone has encountered financial difficulties. If you have the conditions, you can apply for loan products from the bank and repay them on schedule every month. Choosing the repayment method is also a technical job. Next, Jin Toubian Xiao introduced which repayment method is better.

1, equal repayment of principal and interest

In short, the sum of the loan principal and interest is repaid in equal monthly installments. This is the most common repayment method, which is adopted by housing provident fund loans and many bank commercial loans.

Features: the monthly repayment amount is the same.

2. Repayment by average capital

That is, the borrower distributes the loan amount to each period (month) evenly during the repayment period, and pays the loan interest from the previous trading day to the repayment date.

Features: the monthly repayment amount decreases month by month.

3. Repay the principal monthly.

That is, the borrower repays the loan principal in one lump sum on the maturity date of the loan (the loan with a maturity of less than one year (including one year)), and the loan interest is calculated on a daily basis and repaid on a monthly basis.

4. Early repayment of some loans

That is to say, when the borrower applies to the bank, he can repay part of the loan amount in advance, which is generally an integer multiple of 1 000 or 1 000. After repayment, the loan bank issues a new repayment plan, and the repayment amount and repayment period change, but the repayment method remains unchanged, and the new repayment period shall not exceed the original loan period.

5. Pay off all loans in advance.

That is, the borrower can pay off all the loan amount in advance by applying to the bank. After paying off, the lending bank will terminate the borrower's loan and handle the corresponding cancellation procedures.

6. Pay as much as you borrow

Interest after borrowing is calculated on a daily basis. Money can be liquidated at any time without penalty.