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Nsb Loan Calculator Sri Lanka

Loan Payment Formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

LKR
%
years

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1. What is the Loan Payment Formula?

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.

2. How Does the Calculator Work?

The calculator uses the loan payment formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:

Explanation: The formula accounts for compound interest over the life of the loan, ensuring each payment covers both principal and interest.

3. Importance of Loan Calculation

Details: Understanding your monthly payment helps with budgeting and financial planning. It allows you to compare different loan options and terms.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

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.

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