1. What is the NAB Personal Loan Borrowing Calculator?

The NAB Personal Loan Borrowing Calculator helps you determine how much you can borrow based on your affordable monthly payment, interest rate, and loan term. It uses the standard loan formula to calculate your maximum borrowing power.

2. How Does the Calculator Work?

The calculator uses the loan formula:

Where:

• \( P \) — Principal loan amount (AUD)
• \( PMT \) — Affordable monthly payment (AUD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Loan term in months

Explanation: The formula calculates the present value of a series of future payments (annuity) at a given interest rate.

3. Importance of Loan Affordability Calculation

Details: Calculating your maximum borrowing power helps ensure you don't overextend yourself financially and choose a loan amount that fits comfortably within your budget.

4. Using the Calculator

Tips: Enter your comfortable monthly payment amount, the annual interest rate (as offered by NAB), and your desired loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical interest rate for NAB personal loans?
A: NAB personal loan rates typically range from 6.99% to 19.99% p.a. depending on the loan type and your creditworthiness.

Q2: What is the maximum term for NAB personal loans?
A: NAB offers personal loan terms from 1 to 7 years (12 to 84 months).

Q3: Does this calculation include fees?
A: No, this calculation doesn't include establishment fees or ongoing fees. Contact NAB for complete cost details.

Q4: How accurate is this calculator?
A: This provides an estimate based on the formula. Actual loan offers may vary based on credit assessment.

Q5: Can I change my payment frequency?
A: NAB typically offers monthly repayments. Check with them for other options like fortnightly repayments.