1. What is the DFCC Personal Loan Calculator?

The DFCC Personal Loan Calculator helps you estimate your monthly loan payments based on the principal amount, interest rate, and loan term. It uses the standard loan payment formula to provide accurate results.

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 divided by 12)
• \( n \) — Number of monthly payments
• \( PMT \) — Monthly payment amount (LKR)

Explanation: This formula accounts for the compounding interest over the life of the loan to determine equal monthly payments.

3. Understanding Loan Payments

Details: Each payment includes both principal and interest. Early payments have a higher interest component, while later payments have more principal.

4. Using the Calculator

Tips: Enter the loan amount in LKR, annual interest rate (DFCC's current rate), and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What interest rates does DFCC Bank offer?
A: DFCC's personal loan rates vary based on creditworthiness and market conditions. Check their website for current rates.

Q2: Are there any additional fees?
A: DFCC may charge processing fees or other charges. Consult with the bank for complete cost details.

Q3: Can I prepay my DFCC personal loan?
A: Prepayment policies vary. Some loans allow prepayment with possible fees. Check your loan agreement.

Q4: How does loan term affect payments?
A: Longer terms reduce monthly payments but increase total interest paid. Shorter terms have higher payments but lower total cost.

Q5: Is this calculation exact?
A: This provides an estimate. Actual payments may vary based on specific loan terms and rounding methods.