1. What is the Personal Loan Payment Formula?

The personal loan payment formula calculates the fixed monthly payment required to repay a loan over a specified term. This formula accounts for compound interest and is used by FNB and other banks in Durban for personal loan calculations.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

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

Explanation: The formula accounts for the compounding effect of interest over the loan term, calculating a fixed payment that covers both principal and interest each month.

3. Importance of Loan Payment Calculation

Details: Understanding your monthly payment helps with budgeting and ensures the loan is affordable. FNB Durban personal loans typically have rates up to prime + 17.5%, making accurate calculation essential.

4. Using the Calculator

Tips: Enter the principal amount in ZAR, annual interest rate (e.g., 17.5 for 17.5%), and loan term in months (6-72). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the maximum interest rate for FNB personal loans in Durban?
A: Rates can go up to prime + 17.5% (currently about 24% total), depending on creditworthiness.

Q2: What loan terms are available?
A: FNB Durban typically offers personal loan terms from 6 to 72 months (0.5-6 years).

Q3: Are there any additional fees?
A: FNB may charge initiation and service fees, which are not included in this calculation.

Q4: How does early repayment affect the total cost?
A: Early repayment may reduce total interest, but some banks charge prepayment penalties.

Q5: What's the minimum loan amount?
A: FNB Durban typically has a minimum personal loan amount of ZAR 1,000.