Loan Payment Formula:
From: | To: |
The loan payment formula calculates the fixed monthly payment required to repay a loan over a specified term, including interest. This is the standard formula used by financial institutions including National Savings Bank of Sri Lanka.
The calculator uses the loan payment formula:
Where:
Explanation: The formula accounts for compound interest over the life of the loan, ensuring each payment covers both principal and interest.
Details: Understanding your monthly payment helps with budgeting and financial planning. It allows you to compare different loan options and terms.
Tips: Enter the principal amount in LKR, annual interest rate (without % sign), and loan term in years. All values must be positive numbers.
Q1: What is the typical interest rate for NSB loans?
A: NSB loan rates vary by product and customer profile. Current rates range from 8% to 15% APR depending on loan type and term.
Q2: Are there any additional fees?
A: NSB may charge processing fees, insurance, or other charges. These are not included in this calculation.
Q3: Can I prepay my NSB loan?
A: Yes, but early settlement fees may apply. Check with NSB for current prepayment policies.
Q4: How accurate is this calculator?
A: This provides an estimate of monthly payments. Actual payments may vary slightly due to rounding or specific bank policies.
Q5: Does this work for other types of loans?
A: This formula works for most fixed-rate installment loans, including personal loans, home loans, and vehicle loans.