1. What is the SBM Loan Payment Calculator?

The SBM-style loan payment calculator computes monthly payments for personal loans using the standard amortization formula. While SBM primarily operates in Mauritius, this calculator can be used for similar loan structures.

2. How Does the Calculator Work?

The calculator uses the loan payment formula:

Where:

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

Explanation: The formula calculates the fixed monthly payment required to fully amortize the loan over its term.

3. Importance of Loan Payment Calculation

Details: Understanding your monthly payment helps with budgeting and assessing loan affordability before committing to a loan agreement.

4. Using the Calculator

Tips: Enter principal amount in MUR, annual interest rate as a percentage, and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this calculator include fees or insurance?
A: No, this calculates only the principal and interest portion. Actual payments may include additional fees.

Q2: How does interest rate affect payments?
A: Higher rates increase monthly payments. Even a 1% difference can significantly impact your payment amount.

Q3: What's better - shorter or longer loan term?
A: Shorter terms mean higher payments but less total interest. Longer terms reduce payments but increase total cost.

Q4: Can I use this for other currencies?
A: Yes, the calculation works for any currency as long as you're consistent with the principal and payment units.

Q5: How accurate is this calculator?
A: It provides mathematically accurate results for fixed-rate loans. Variable-rate loans would require different calculations.