What Is Debt Service?

The one-off principal and interest payment method means that the borrower does not repay the principal and interest on a monthly basis during the loan period, but instead returns the principal and interest at one time after the loan expires. This method of one-off repayment is suitable for short-term borrowing.

One-off repayment

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One-off repayment

One-time principal and interest payment method, also known as one-time principal and interest payment method, refers to

The calculation formula for the one-time principal and interest payment method is as follows: One-time principal and interest payment due = loan principal × [1 + annual interest rate (%)] (the loan period is one year)

One-time principal and interest payment due = loan principal × [1 + monthly interest rate () × loan period (month)] (the loan period is less than one year)

Of which: monthly interest rate = annual interest rate ÷ 12

If the housing provident fund loan is 10,000 yuan and the loan period is 7 months, the principal and interest payment once due is:

10,000 yuan × [1+ (4.14% ÷ December) × July] = 10241.5 yuan