Loans, as a source of finance that we often encounter in our daily lives, are generally repaid in two main ways: lump-sum and instalments. Then let's learn the difference between the two ways。

Distinction between lump-sum and instalments of interest

First, there is a significant difference in the length of repayment between the two approaches. If a one-time repayment is chosen, you can also guess by name that, once the unforgettable loan term has arrived, you are going to give up your arrears and interest once and for all. A further matter would be to pay the instalments, and the amounts and interest would be distributed over time, incrementally and in an uninvited one。

Moreover, the manner in which interest is calculated varies. One-time repayments are usually calculated at the interest rate of the total loan and the duration of the loan, and when you settle, you will pay your principal and interest, and you will put a decent end to this fight with money. Interest on instalments is calculated on the principal and interest rates payable for each repayment period。

Finally, important repayment pressures differ. If you choose a one-time payment, then you have to be prepared for a short period of time to raise the bricks to bear the pressure of a one-time payment. But if you choose to pay in instalments, the debt burden will be dispersed over the entire repayment period, provided that all points are counted on each period and the repayment pressure is mitigated。

What, then, is there anything to note about the interest rate set for borrowing? If you and the lender are not able to prove this because of a disagreement over the agreed interest rate, then you can calculate interest at the same rate as the bank. If the parties do not have a clear agreement on the payment of interest, but the repayment period is fixed, then you do not need to pay interest within the agreed repayment period. If the parties do not speak clearly about the payment of interest or even agree on a repayment period, then you simply do not pay interest until the lender has initiated the advance. If the borrower ' s actions result in an invalid lending relationship, in addition to the return of the principal, it is required to pay for the occupancy of funds at the bank ' s loan rate of the same kind。

These are some of the basic comparisons of “one-time and instalment repayments” and the attention given to interest rules, which are transposed so that loans can be caught。