In average capital, the monthly repayment amount of loan principal is equal, while the interest decreases with the decrease of remaining loan principal, and the monthly repayment amount also decreases month by month.

Matching principal and interest means that the monthly (principal+interest) repayment amount is equal. In fact, the principal increases month by month and the interest decreases month by month.

Which of the above two repayment methods is more cost-effective, just to see which one is more suitable for your financial situation.

Because the loan interest rate is the same, the bank has introduced two ways, which can't be more cost-effective, otherwise the other one can't be implemented.

The funds are average, which is suitable for customers with higher income and hope that the repayment pressure will gradually decrease;

Matching principal and interest, suitable for customers with low current income but good expectations for future income, and the monthly repayment amount is fixed, which is more convenient; However, due to the less principal returned in the early stage, the overall interest paid is slightly more.