It is better to borrow an equal amount every month or interest first and then principal

Almost. Borrow first interest and then principal.

In fact, it is similar to the monthly amount, because the loan adopts a daily interest-bearing loan method, and the loan interest is calculated according to the loan principal used every day.

Extended Information:1"Borrowing" is now known as Credit Loan, which is a loan service launched by Alipay, according to Sesame.

Depending on the number, the amount of loan that users can apply for varies from one person to another. The maximum repayment period of the loan is 12 months, and the daily interest rate of the loan is to borrow and repay at any time. January 9, 2018, or for excessive leverage and violation of the central bank.

Relevant regulatory regulations have taken the initiative to close some users to control the loan balance. On November 8, 2021, it was reported that the name of Alipay's "borrowing" has been changed to "credit loan". In response, Alipay's customer service said that in order to make it easier for you to have a clearer understanding of the actual consumer credit service provider, the consumer credit service provided by the financial institutions that cooperate with Ant has been updated to "credit loan", and the name of the financial institution is displayed on the credit loan page.

After this adjustment, the original borrowing, auditing, repayment and other services will not be affected.

2."Borrow" is a loan service launched by Alipay, and the current application threshold is more than 600 sesame points. Depending on the score, users can apply for loans ranging from 1,000-300,000 yuan.

The maximum repayment period of the loan is 12 months, and the daily interest rate of the loan is to borrow and repay at any time.

3.Loans, meaning banks, credit unions.

and other institutions lend money to units or individuals who use the money, and generally stipulate the interest and repayment date. Loans in a broad sense refer to the general term for loans, discounts, overdrafts and other lending funds. Banks will concentrate money and monetary funds by way of loans.

By putting it out, it can meet the needs of the society for supplementary funds for expanding reproduction and promote economic development, and at the same time, the banks can also obtain interest income from loans and increase the accumulation of the banks themselves.

Which is more cost-effective, borrowing equal amount or interest first and principal later?

Equal monthly rates are cost-effective.

The reasons are: 1. The same amount every month, a certain amount of loan principal will be repaid every month, and with the decrease of the loan principal, the borrowing interest will also decrease month by month, so the monthly equal interest is lower.

2. Interest before principal, only interest is repaid every month, no principal is repaid, and the principal is repaid in a lump sum on the repayment date of the last month, so the interest after principal is higher.

For example, if you borrow 50,000 yuan and repay it in 12 months, the daily interest rate is, then:

1. Under the monthly equal method, the total interest = yuan;

2. Under the method of interest first and principal later, the total interest = 7,200 yuan.

For the same loan principal, loan tenure and loan interest rate, the interest rate is nearly twice that of the equal principal and interest, so it is more cost-effective to pay the same amount each month.

Of course, this is all about the level of interest. Interest first and principal later also have their own very unique advantages, that is, only interest needs to be repaid every month in the early stage, and the repayment pressure is very small, which is suitable for people with difficulty in capital turnover in a short period of time.

In the same example above, although the monthly equal interest is small, when you need to repay 4,500 yuan per month under the monthly equal amount, you only need to repay 600 yuan per month, which shows that the repayment pressure in the early stage of interest is very small, and it is not easy to overdue repayment.

And whether there is a repayment method of borrowing first interest and then principal, it is completely determined by the comprehensive evaluation of the system, and the system will usually only provide for people with very high-quality personal comprehensive credit, and many users who have opened the loan do not have the option of interest first and then principal, so it is not a cost-effective option that many people ask for.

If he borrows for a few days but less than a month, he will calculate the interest on a daily basis. If you borrow for a long time, there are pros and cons. There is little pressure in the early stage of repaying the interest first, but in the end, you have to pay it off in one hand, and all the pressure is transferred to the repayment date.

If you pay the same amount every month, the pressure is shared, just like a mortgage, you have to pay it every month, but the pressure is relatively less every month.

Let's put it bluntly, the insurance will be repaid in equal amounts, and if there is no money, it will be repaid so much every month, and it will be enough to make up. Interest first and principal later, if you borrow too much, you will suddenly be asked to repay the money, but it will be difficult to make up.

In general, the interest is calculated on a day-by-day basis, and it is better to borrow and repay it in a few days.

I repay my borrowings in equal amounts, that is, I repay the same amount every month, which makes me feel a little less troublesome.

My loan is repaid in equal amounts. However, it is possible to repay the loan early. Borrow at any time.

Borrowing is borrowed and repaid at any time, and the interest is calculated according to how much you borrow, on a daily basis.

The monthly amount is equal, the interest is first and the principal is later, which is too pit, and the interest is about to double as much.

When using the borrow, the system will provide different repayment methods according to the comprehensive situation of the account, please refer to the page display for details, and manual intervention cannot be made.

1. Hello, the system will provide different repayment methods according to the comprehensive situation of the account when using the loan, please refer to the page display for details, and manual intervention cannot be made.

2. The original meaning of interest first and principal after principal is to repay the interest first and then the principal. However, because in the equal principal and interest method, the proportion of principal in the monthly repayment increases month by month, the proportion of interest decreases month by month, and the equal principal and interest method is more common, so the current interest first and principal after principal usually refers to the "equal principal and interest method" repayment, and from the perspective of savings, the equal principal method is more interest-saving than the equal principal and interest method repayment.

3. The equal principal and interest repayment method is to add the total principal and total interest of the mortgage loan, and then distribute it evenly to each month of the repayment period, and the repayment amount of each month is fixed, but the proportion of principal in the monthly repayment amount increases month by month, and the proportion of interest decreases month by month.

4. Differences: 1. Interest first and principal later refers to the monthly interest payment of the project and the repayment of the principal when due.

2. Equal principal and interest refers to the monthly repayment of part of the principal and interest, the principal increases, the remaining principal decreases, and the interest decreases, but the principal and interest received each month are equal.

5. For the debtor, the repayment method of interest first and principal later is more popular, because the repayment pressure in the early stage is relatively small, and it is convenient to settle it in a lump sum after the capital turnover in the later stage. For the creditor is not very keen on this, because his lending funds are more risky, and the longer the borrowing period, the greater the risk.

6. Both repayment methods are based on the monthly decrease of the remaining principal, and the interest will also decrease month by month, both of which are calculated according to the time value of the customer's occupation of the funds in the management center. Since the "equal principal repayment method" is more likely to repay the loan principal in the same period than the "equal principal and interest repayment method", the basis for calculating the loan interest in determining the loan interest in subsequent periods becomes smaller, and the total interest repaid is relatively smaller.

7. This should have nothing to do with your own settings, it is estimated that the staff of Ant Financial will no longer do interest before principal according to business needs, but equal principal and interest repayment, in fact, the vast majority of Internet loans are equal principal and interest methods, you consult customer service to see if you can get interest first and then principal.

There are currently two repayment methods for borrowing.

1. Equal monthly repayment.

Equal monthly repayment is to calculate the principal and interest at once, and then repay the same amount every month. This repayment method is to repay part of the principal and interest every month, which is the mainstream repayment method for borrowing.

2. Repayment with interest first and principal later.

Interest first repayment after principal repayment means that during the loan term, only the interest will be repaid every month in the first few installments, and the principal and interest of the current month will be repaid once in the last month. In the first few months, only the interest repayment pressure is relatively small, but the last installment needs to be followed by the repayment of principal + interest, if the repayer is not willing to repay, it is more likely to be overdue.

Why can't you choose to repay the principal later?

Although borrowing can freely choose the repayment method, the repayment method is evaluated by the system, and I believe that most users should be the same as Xi Caijun, and there is only one default repayment method, that is, equal monthly repayment.

The repayment method also does not support manual intervention, and Xi Caijun guesses that users who have the option of repaying the interest first and then the principal should belong to the high-end users of Alipay. For example, the Ant membership level is at least a platinum member, or the Sesame Score credit score is at least 800 or more, or you have purchased a large amount of financial products on Alipay, etc. It should be the only such users that the borrowing evaluation system will give the option of interest first and principal later.

Otherwise, it's better to honestly accept the repayment method of equal monthly repayment!

There are two ways to repay the loan, of course, early repayment is a more alternative one, and it has not been included for the time being. Xi Caijun thinks that if you want to qualify for interest first and principal repayment, the threshold should be quite high. Thinking about it from another angle, if the above points are really achieved, then this kind of user probably does not need to borrow money on borrowing.

Interest is calculated on a daily basis, calculated on a daily basis, and can be repaid in advance, with an interest rate of 100%, for example, if you borrow 1000, borrow for 6 months, and repay more than 100 plus interest in the first month. After that, the interest will be less and less, because you owe less money.

If it is a mortgage, then the equal principal repayment, (the repayment amount is gradually decreasing on a monthly basis) The equal principal and interest repayment is that the monthly repayment amount is the same, and the final interest repaid is more than the interest repaid by the equal principal If it is a one-year loan.

This should have nothing to do with your own settings, it is estimated that the staff of Ant Financial will no longer do interest before principal according to business needs, but equal principal and interest repayment, in fact, the vast majority of Internet loans are equal principal and interest methods, you consult customer service to see if you can get interest first and principal later.

BorrowedInterest first, then principalThe function is only open to some customers of the repayment method, there is no interest before the option of this account, indicating that the user's credit qualification conditions cannot meet the standard, and the borrowing system does not support the user interest first and then the principal.

If there is no option to pay interest first and then principal, then the user can only choose other repayment methods. The repayment method of the loan is determined by the system evaluation, and some users do not have the option of interest first.

As long as the user repays each loan period on time and accumulates a good credit history, it is possible to receive an invitation to interest first and principal later, and the user must maintain good repayment habits, otherwise the Sesame Credit score will be lowered.

Borrowing can be paid first. When the user applies for a loan, the system will have a repayment method for everyone to choose, if there is interest before the principal, then this loan supports the repayment of interest before the principal. If there is no option to pay interest later, then the user can only choose other repayment methods.

The repayment method of borrowing is determined by the system evaluation, and some users do not have the option of repayment with interest first and principal later.

As long as the user repays each loan on time and accumulates a good credit history, it is possible to receive an invitation to repay the loan with interest first and principal later.

In fact, the repayment method of interest first and principal is the so-called repayment of interest first and then principal, the repayment method of interest first and principal later, the borrower only needs to repay the interest every month, and when the loan expires, the principal will be repaid at one time, because the principal generates interest, and the principal is equivalent to the principal for a long duration, so the interest repaid will be more.

If the borrower wants to repay the loan in advance, then it will be more disadvantaged, because the interest has been repaid a lot, and the early repayment can not save too much interest, and may even have to pay the liquidated damages for early repayment, which is a very cost-effective thing.

The repayment method of the borrower is given after the evaluation of the system, and there is no repayment option of interest first and principal later, indicating that the user does not meet the conditions for interest and principal repayment, so the system does not give the option of interest first and principal repayment. Different users have different credit qualifications, and the repayment methods that borrowers have are subject to the display on the loan page.

In addition, there is no repayment option of interest first and principal later, so it is the default monthly equal repayment, and the monthly equal repayment spreads the repayment pressure to each month, which also reduces the risk of overdue.

Ant Borrowing cancelled the user's interest-first and principal repayment method because the repayment method was determined by the system evaluation, and the system believed that the user did not meet the conditions for using the interest-first and principal repayment method. There are two repayment methods for Ant Borrow, one is interest first and principal later, and the other is an equal monthly amount. Users with good credit qualifications will have two repayment methods to choose from.

For users with average or poor credit qualifications, Ant Borrowing provides borrowing services, but does not support users to choose repayment methods.

Alipay is also avoiding risks, and there are too many people in debt at present, so that the operation can be more effective to avoid risks.

Before that, borrow.

There are two repayment methods, one is equal principal and interest.

The other is to interest first and then principal.

When many users apply for borrowing, they like to choose interest first and principal later. However, the subsequent Alipay platform canceled the repayment method of interest first and principal later, and only retained the repayment method of equal principal and interest.

Reason 1: The repayment method of interest first and principal is more risky, and borrowing is a credit loan, if the user applies for a loan with a large amount, then the repayment method of interest first and principal is not easy to control. If you are not careful, it is easy to end up with the unrecoverable principal and interest.

Reason 2: In recent years, the state has become more and more strict in the supervision of the credit market, and the number of "judgment defaulters" has increased repeatedly. The state has taken a number of preventive policies to reduce the number of overdue loans.

In the repayment method of interest first and principal later, there are more people who are overdue on loans.

According to Alipay's official staff, borrowing does not support the repayment method of interest first and principal later. Unless the user's personal qualifications are particularly excellent and have accumulated a fairly good credit history on the Alipay platform. Otherwise, the Alipay platform will not arbitrarily open a repayment method for users with interest first and principal later.