Extended data:
There are many ways to repay a loan. Our most common repayment methods mainly include average capital, matching principal and interest, paying interest first, and paying principal and interest at one time. Details of different repayment methods are as follows:
1, average capital: average capital refers to the loan principal divided by the number of repayment months, and the fixed principal is returned every month to pay the interest on the remaining principal. The loan interest decreases with the decrease of loan principal, and the total repayment amount decreases with the decrease of interest.
2. Matching principal and interest: determine the repayment amount of each month, calculate the interest payable in the current month, and then subtract the interest payable in the current month from the determined repayment amount, which is the repayment amount of the principal, and calculate the interest for the next month according to the remaining principal.
3. Pay interest first, then principal: only pay interest every month. When the loan expires, the loan principal will be repaid in one lump sum.
4. One-time repayment of principal and interest: you don't need to repay any loan every month, but you can repay all the principal and interest of the loan when the loan term expires.
Each repayment method has its own advantages, and everyone still needs to choose the repayment method according to their actual situation when lending.
Loan form
General loan limit and standby loan commitment
Ordinary loan line is a form of loan subject to informal agreement. Based on the seasonal and regular characteristics of capital demand, enterprises enter into informal agreements with banks to stipulate the maximum loan amount that banks can provide to enterprises within a specified period, during which enterprises can obtain bank loans at any time. When an enterprise applies for a loan amount, it must explain to the bank the financial status before the loan, and the bank decides whether to grant credit and implement the agreement according to the credit status of the enterprise and its own business requirements. Standby loan commitment is a form of loan agreed in a more formal and legally binding agreement. The enterprise signs a formal loan agreement with the bank, and the bank promises to provide loans to the enterprise within the prescribed time limit and limit, and requires the enterprise to pay the commitment fee to the bank.
Working capital loans and project loans
Working capital loan is a kind of loan form that determines the loan term and amount according to the product sales progress according to the characteristics of long production cycle, large raw material reserve and slow withdrawal of funds. Project loan is a large-scale construction project with high risk and high cost, which has the characteristics of large amount, high risk and high interest rate. The rationality and feasibility of the project is the basis for deciding whether to lend or not, and the recourse of the loan debt is for the project, not for the company and enterprise. For super-large projects, many banks usually provide loans in the form of bank syndicates or syndicates to spread risks.