1. What is the Bank of Ceylon Loan Calculator?

The Bank of Ceylon Loan Calculator helps estimate monthly payments for loans from Sri Lanka's premier state bank. It uses the standard loan payment formula to calculate installments based on principal amount, interest rate, and loan term.

2. How Does the Calculator Work?

The calculator uses the loan payment formula:

Where:

• \( P \) — Principal loan amount (LKR)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (months)
• \( PMT \) — Monthly payment amount (LKR)

Explanation: The formula accounts for compound interest over the loan term to determine fixed monthly payments that fully amortize the loan.

3. Importance of Loan Payment Calculation

Details: Accurate payment calculation helps borrowers understand their financial commitments, compare loan options, and plan their budgets effectively.

4. Using the Calculator

Tips: Enter principal in LKR, annual interest rate in percentage, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What types of loans does this calculator work for?
A: It works for standard personal loans, housing loans, and other fixed-term amortizing loans from Bank of Ceylon.

Q2: Does this include Bank of Ceylon's fees and charges?
A: No, this calculates base payments only. Additional fees may apply per Bank of Ceylon's terms.

Q3: What is the maximum loan term available?
A: Bank of Ceylon typically offers personal loans up to 7 years and housing loans up to 30 years.

Q4: How often are payments made?
A: The calculator assumes monthly payments, which is standard for most Bank of Ceylon loans.

Q5: Can I calculate for variable interest rates?
A: No, this calculator assumes a fixed interest rate for the entire loan term.