What are the repayment methods of commercial loans? How to prepay?

1. What are the repayment methods of commercial loans? How to prepay?

It is common to negotiate housing loans. As ordinary office workers, most of them buy houses through commercial loans, so what are the options for loan repayment?

I. Equal principal and interest repayment method

That is, the borrower repays the loan principal and interest in equal amount every month, which is also called "harmony". It is easy to make a budget, and the pressure of initial repayment is reduced, but the interest of initial repayment accounts for most of the monthly repayment. Gradually increasing the proportion of principal in repayment is conducive to balance. This repayment method also

Second, the average capital repayment method.

That is, the borrower repays the principal in equal amount every month, and the loan interest decreases with this month, so it is also called the diminishing method. Its characteristic is that the monthly repayment of principal is unchanged, the amount of repayment in advance is large, and the monthly repayment amount is gradually reduced. The interest paid by this repayment method is low, but the pressure of prepayment is great.

However, some people want to prepay because they are well off, so if they want to prepay, they need the basic steps of prepayment.

1, check money;

2. Telephone consultation related matters;

3. Fill in the application for prepayment;

4. Obtain the approval letter containing the application for blind drought.

5. Obtain the certificate of other rights and buy a house.

6. The real estate mortgage is released;

7. Go through the formalities of prepayment and refund of premium.

As a lender, we also need to pay attention to the different rules and regulations of each bank, so when we handle the prepayment, we'd better ask the bank's regulations in advance before operating.

Second, the advance payment process of Chery Finance?

First, determine the repayment date.

The monthly repayment date and the loan issuance date are the same calendar day. If the loan is issued on June 65438+1 October 1, the first repayment date is February 1, and the subsequent monthly repayment date is June1. If the calendar day of the month is different from the loan issuance date, the repayment date is the last day of the month.

Second, pay attention to repayment SMS

Chery Automobile Finance will remind you of the date and amount of repayment by SMS within 3 days, and will also remind you by SMS or telephone if the repayment fails. If you are informed that the repayment has failed, please call the customer service hotline as soon as possible for verification. Tips: If the contact information or bank changes during the loan period, please call customer service in time to make changes.

Third, determine the repayment account.

Just deposit the monthly repayment amount into the deduction bank account before the repayment date.

Fourth, you can repay in advance.

Chery automobile finance loan can be repaid in advance, but it needs to collect liquidated damages. The collection of liquidated damages shall be subject to the signed loan contract. If you need to pay in advance, you'd better contact the customer service hotline directly to verify the handling.

3. How to repay the loan in advance?

At present, the two most commonly used repayment methods are equal principal and interest repayment method and average capital repayment method. Matching principal and interest repayment method, that is, the borrower repays the loan principal and interest with the same amount every month. In this way, the interest expense is the most in the initial repayment period, and the principal is relatively small. In the future, with the gradual reduction of monthly interest expenses, the returned principal will gradually increase. Average capital repayment method, that is, the borrower repays the same amount of loan principal every month, and the interest decreases month by month with the principal, and the monthly repayment amount also decreases month by month. Under the condition of the same loan time, the interest paid by the equal principal and interest repayment method is higher than that by the average capital repayment method. Therefore, if you plan to repay in advance, you'd better choose the average capital repayment method.

Repaying the loan in advance is mainly to reduce interest, especially in the first few years of the loan, the principal base is large and the interest is correspondingly high. Therefore, financial experts suggest that in the first few years of the loan, especially in the first five years, we must strive for more repayment, so as to reduce the principal base of the total loan and reduce the interest burden in the remaining loans.

According to the different repayment methods, the borrower can choose to reduce the term or amount. It is understood that at present, most banks can provide five ways to repay loans in advance for customers to choose from.

First, all loans are repaid in advance, that is, customers pay off all remaining loans at one time. (There is no need to repay the interest, but it will not be refunded if it is paid)

Second, a part of the loan will be repaid in advance, and the monthly repayment amount of the remaining loan will remain unchanged, thus shortening the repayment cycle. (save more interest)

Third, repay some loans in advance, reduce the monthly repayment amount of the remaining loans, and keep the repayment period unchanged. (Reduce the monthly payment burden, but less than the second type)

Fourth, repay some loans in advance, reduce the monthly repayment amount of the remaining loans and shorten the repayment cycle. (save more interest)

Fifth, the remaining loans keep the total principal unchanged and only shorten the repayment period. (The monthly payment will increase and the interest will decrease, but it is relatively uneconomical.)

Financial experts suggest: repay in advance, minimize the principal, shorten the loan period and pay less interest.

■ How to repay the loan is cost-effective

If you choose a combination of commercial loans and provident fund loans, it will be more "preferential" to repay the commercial loans first. Because the provident fund loan contains policy subsidies, the loan interest rate is much lower than that of commercial loans, and the floating rate is also smaller than that of ordinary commercial loans, so it is relatively cost-effective for buyers to return commercial loans with higher loan interest rates in advance.

If it is a pure commercial loan, there are two different repayment methods.

According to experts' analysis, compared with the two repayment methods, due to the same loan for a period of time, the interest paid by the "equal principal and interest repayment method" will be higher than that by the "average principal repayment method", while the interest paid when repaying the loan in advance is non-refundable, and relatively speaking, a lot of interest should not be paid in advance. Therefore, if there is a plan to repay the loan in advance, it is better to choose the "average capital repayment method" loan, which is more cost-effective.

However, not everyone should use the "average capital repayment method" to repay the loan, which depends on your own financial planning. For people with diversified income or income, the "average capital repayment method" may be adopted; If you have sufficient funds now and don't plan to repay in advance, I suggest you also use the "average capital repayment method" to repay. Because, although this repayment method has great financial pressure in the early stage, it can alleviate the pressure in the future. Its characteristic is that with the passage of time, the later the repayment, the less and the easier it is. If you are a civil servant, an ordinary teacher, a general scientific researcher, or a person with stable and non-competitive work, I suggest you choose the "equal principal and interest repayment method".

If your loan is repaid with equal principal and interest, the first 10 year is basically cost-effective. Because this kind of loan pays interest at the initial stage of repayment, the principal amount is relatively small, so repaying the loan in advance can reduce a lot of interest expenses. Strive for repayment in recent years, reduce the principal base, thus reducing the interest burden.

From the perspective of saving interest, shortening the loan term is a good choice, because the time is shortened and the monthly repayment amount remains unchanged, which speeds up the repayment of principal and reduces the interest paid.

4. What are the repayment methods of commercial loans? How to prepay?

Commercial loans to buy a house are very common. As ordinary office workers, most of them buy houses through commercial loans, and there is no need to prepare high housing costs. So what are the options for loan repayment?

I. Equal principal and interest repayment method

That is, the borrower repays the loan principal and interest with the same amount every month, also known as the equal principal and interest method. It is characterized by the same principal and interest in monthly repayment, which is easy to budget, and the initial repayment pressure is reduced, but the interest in initial repayment accounts for most of the monthly repayment, and the proportion of principal in repayment is gradually increased, while the proportion of interest is gradually reduced, thus achieving a relative balance. The interest paid by this repayment method is high, but the pressure of prepayment is not great.

Second, the average capital repayment method.

That is, the borrower repays the principal in equal amount every month, and the loan interest decreases month by month with the principal, and the repayment amount also decreases month by month, so it is also called the diminishing method. Its characteristic is to repay the principal every month and calculate the interest on a daily basis according to the loan principal amount. The early repayment amount is large, and the monthly repayment amount is gradually reduced. The interest paid by this repayment method is low, but the pressure of prepayment is great.

However, some people want to repay in advance when they have a lot of money at hand. What should I do if I want to repay in advance? Let's take a look at the basic steps of prepayment.

1, query loan balance and original loan contract terms;

2. Telephone consultation related matters;

3. Fill in the application for prepayment;

4. Get the application approval and repay the loan;

5. Obtain his right certificate and the original house purchase contract;

6. The real estate mortgage is released;

7. Go through the formalities of prepayment and refund of premium.

As a lender, we also need to pay attention to the different rules and regulations of each bank, so when we handle the prepayment, we'd better ask the bank's rules in advance before operating to avoid unnecessary trouble.