1. Loan is an activity that financial institutions collect funds and interest according to a certain proportion, and installment payment is a way to repay funds;

2. Different repayment methods: if there is no special user who needs to repay all the principal and interest before the final repayment time comes, the installment is that the user repays part of the funds first, and then repays the remaining funds in installments;

3. The content is different.

Loan is a form of credit activities carried out by banks or other financial institutions at a certain interest rate and must be returned.

Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. The bank's currency and monetary funds can be put into production to meet the needs of supplementary funds, thus promoting economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation.

"Three Principles" refers to the basic principles of safety and cash flow management. Article 4 of People's Republic of China (PRC) Commercial Bank Law stipulates: "Commercial banks should operate independently, bear their own risks, be responsible for their own profits and losses, and take safety, liquidity and efficiency as their operating principles.

1, loan security is the primary problem faced by commercial banks;

2. Liquidity refers to the ability to realize cash quickly in case of loss, so as to meet the needs of customers to withdraw deposits at any time;

3. Efficiency is the basis of sustainable operation of banks.

For example, if a long-term loan is issued, the interest rate will be higher than that of a short-term loan, and the benefit will be good. However, if the loan term is long, the risk will increase, the security will decrease and the liquidity will weaken. Therefore, "three questions.

Interest refers to the remuneration paid by the borrower to obtain it, which is the use price of funds (that is, the loan principal) in a certain period of time. The loan interest can be calculated in detail by the loan interest calculator.

In civil law, interest is the legal fruit of principal.

(1) Equal principal and interest repayment method: equal repayment every month, the sum of loan principal and interest. Most banks have adopted this method for housing provident fund loans and commercial personal housing loans. So the monthly repayment amount is the same;

(2) average capital repayment method: that is, the borrower distributes the loan amount to each period (month) evenly throughout the repayment period and pays it off on the previous trading day. This prescription

2. What's the difference between installment and loan?

Installment payment is a monthly repayment of principal and interest, which is generally used for individuals or credit cards to buy houses, cars and return funds.

Loans also include one-time repayment of principal and interest and monthly repayment of principal when due. This is mostly used for corporate loans!

3. What's the difference between installment loan and interest after debt service?

For example, someone borrows 500,000 yuan with a loan term of 20 years and an annual interest rate of 4.75%.

So, interest comes first, and then this is:

Total interest = 500,000× 4.75 %× 20 = 475,000 yuan; The matching principal and interest is: total interest = [500,000× 4.75%/12× (14.75%/12) 240] ≤ [(14.75%1] The difference between them is: 475,000-275,468.35 =199531.65 yuan.

It can be seen that there is still a big difference in interest, but it should be noted that interest before interest is generally applicable to loans with short loan term, not to loans with long loan term and large loan amount, otherwise a lot of interest will be charged. Large loans are usually repaid with equal principal and interest and average capital.

4. Is installment the same as loan? What is the difference?

Hello, staging is mostly used for some products with short production cycle (one or two years) and high cost. Loans are usually divided into mortgage loans and credit loans, and there are many ways and means of loans. In addition to common bank loans, there are also local companies, but loans are also accompanied by risks, and borrowers need to measure their economic ability to choose. It is recommended that you choose a formal platform when applying for a loan to better protect your personal interests and information security.

I recommend you to use the money flower, which is a credit service brand under Du Xiaoman Finance (formerly Baidu money flower, renamed as "money flower" in June 2065438+08). Big brands are reliable and trustworthy with low interest rates. Youhuahua's consumer credit products for individuals are full of easy loans, with a maximum loan amount of 200,000 (click on the official calculation) and a daily interest rate as low as 0.02%. It has the characteristics of simple application, low interest rate, fast loan, flexible loan repayment, transparent interest rate and strong security.

Share with you the application conditions for rich flowers: the application conditions for rich flowers are mainly divided into two parts: age requirements and information requirements. 1. Age requirement: 18-55 years old. Special note: if you have money to spend, you refuse to provide college students with consumer installment loans. If you are a college student, please give up the application. Information requirements: You need to provide your second-generation ID card and your debit card during the application process. Note: the application only supports debit cards, and the application card is also your loan bank card. My identity information needs to be the second-generation ID card information, and cannot be processed with temporary id card, expired ID cards or first-generation ID cards.

This answer is provided by Youhuahua, please borrow it reasonably according to your needs. Specific product-related information is subject to the actual page of Youhuahua official APP. I hope this answer is helpful to you. Click on the bottom of the phone to measure immediately! The maximum loanable amount is 200,000.