What are the repayment methods for small loan business?

How to repay a small loan, what are the repayment methods of small loans

Now the use of small loans of young people more and more, this kind of loan is not need to car and house collateral, and the application process is also particularly simple, the arrival time is also very fast, relative to some of the traditional loan, it is more in line with the current young people's fast-paced life.

After obtaining the loan, timely repayment of the loan and principal, is also very necessary. So how do you repay a small loan, and what are the ways of repayment? I'll tell you about it below.

How to repay a small loan

According to the current bank regulations, small loans must pay attention to some of the correct ways when repaying. Pay attention to those rules of equal principal and equal interest. Equal principal and interest repayment means that the total amount repaid each month is the same, where the principal portion of the monthly repayment is slowly increasing and the interest is slowly decreasing.

What happens if you can't pay back a small loan in time

If you can't pay it back in time, you're going to be hit with a hefty fine, and some financial institutions require a default fee on top of the interest penalty, which can add up to a huge amount, and your creditworthiness will be damaged. It is very difficult to apply for a credit card or loan in the future. There are also various means of collection, whether it is a bank or credit company has its own collection system, due to send you a text message to call, the degree of seriousness will even have the personnel in a timely manner door to door collection.

What are the repayment methods for small loans

1, equal principal and interest monthly fixed repayment, means that the total amount of monthly repayment is the same, in which the monthly repayment of the principal portion of the gradual increase in interest is gradually reduced.

2, equal principal and interest, is the monthly repayment of the principal is the same, the interest is also the same, this repayment method, the lender each period in the repayment of the principal, but the interest did not change with the reduction of the loan principal.

3. Equal Principal Repayment Repayment means that the principal is the same each month, and the interest rate for each installment of repayment decreases with the decrease of the principal owed, which also decreases gradually.

But after enjoying the convenience of a small loan, it is important to be able to repay it in a timely manner. The first thing you need to do is to make sure that your credit card is in good shape, and that it is very convenient for you to take out a loan or a large credit card in the future. At the same time in the repayment time, must choose the most cost-effective way for their own. It can be very good to reduce the total amount of repayment and reduce the difficulty of easing.

What are the repayment methods for small loan business

With the development of social economy, there is an increasing demand for loans, especially small loan business. Need to remind you is, in the application of small loan business, must look at the repayment method, different repayment methods, bear different interest:

1, equal principal and interest: monthly repayment of the same amount of loan, including principal and interest, the further the repayment of the amount of the increasing proportion of the principal, the decreasing proportion of the interest;

2, equal principal and interest: monthly repayment is not the same, the first repayment of the amount of the larger

2, equal principal: the monthly repayment amount is not the same, the first repayment amount is larger, the weight of the principal, the further back, the repayment amount becomes smaller, the proportion of the principal becomes smaller;

3, monthly payment of principal and interest: monthly repayment for the equal amount of the principal + the equal amount of interest, the formula for calculating: monthly repayment amount = principal / repayment period + principal * monthly interest rate.

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What are the repayment methods for small loans? Which repayment method is the most cost-effective?

Small loans are less stressful for borrowers to repay, so many choose to take out loans this way. So, what are the repayment methods of small loans? Which repayment method is the most cost-effective? Below, to tell you.

Generally speaking, small loan repayment methods are: equal principal and interest, equal principal and interest, equal principal and interest three repayment modes. Then, to ten thousand yuan loan, 24 repayment, monthly expected annualized interest rate of 2% as an example, to explain to you.

One, equal principal and interest

Monthly repayment amount = $

Total interest = $

Equal principal and interest repayment, is the same total monthly repayment amount, which the monthly repayment of the principal portion of the incremental increase, the interest in the decreasing.

Two, equal principal and equal interest

Monthly repayment amount = 48000/24 + 48000*2% = 2960 yuan

Total interest = 23040 yuan

Equal principal and equal interest, is the same monthly repayment of the principal, the same interest. With this type of repayment, the borrower is repaying the principal each installment, but the interest doesn't decrease as the principal of the loan decreases.

Three, equal principal

The first repayment amount: 2960 yuan

The last repayment amount of yuan

Total interest = 12,000 yuan

Equal principal repayment, is the same monthly repayment of the principal, the interest of each repayment with the reduction of the principal owed.

As can be seen from the above three ways, equal principal and interest has the highest total interest rate, equal principal has the lowest interest rate, but there is a lot of pressure to pay back the loan up front, and equal principal and interest has a fixed monthly repayment amount, and the interest rate is higher than that of equal principal, and lower than that of equal principal and interest. Small loan companies are usually unsecured loan products, loan companies bear more risk, the loan is expected to annualized expected return requirements are higher, so the small loan company not only the loan is expected to annualized interest rate is relatively high, the repayment method above, but also to the majority of equal principal and equal interest.