1. What is the Personal Loan Repayment Formula?

The personal loan repayment formula calculates the fixed monthly payment required to repay a loan over a specified term. This calculation is used by FNB and other financial institutions to determine loan repayments.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( PMT \) — Monthly payment amount (ZAR)
• \( P \) — Principal loan amount (ZAR)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Number of monthly payments (loan term in months)

Explanation: The formula accounts for compound interest and spreads the repayment equally over the loan term.

3. Importance of Loan Repayment Calculation

Details: Accurate repayment calculation helps borrowers understand their financial commitments, compare loan offers, and budget effectively.

4. Using the Calculator

Tips: Enter the loan amount in ZAR, annual interest rate (without % sign), and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this include FNB's loan fees?
A: This calculation only includes principal and interest. FNB may charge additional fees that affect the total cost.

Q2: What is a typical interest rate for FNB personal loans?
A: Rates vary based on credit profile, but typically range from 11% to 24% annually.

Q3: Can I change the payment frequency?
A: This calculator assumes monthly payments. For weekly or fortnightly payments, the calculation would differ.

Q4: How accurate is this calculator?
A: It provides a close estimate, but actual FNB loan terms may vary slightly based on their specific calculations.

Q5: Does this work for other types of loans?
A: The same formula applies to most fixed-term, fixed-rate loans, including vehicle and home loans.