1. What is the Loan Payment Formula?

The loan payment formula calculates fixed monthly payments for SBM Bank Mauritius loans (home, personal, car, eco-loans) with competitive rates. It's based on the principal amount, interest rate, and loan term.

2. How Does the Calculator Work?

The calculator uses the standard 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 accounts for compound interest over the life of the loan, calculating a fixed payment that pays off both principal and interest.

3. Importance of Loan Calculation

Details: Accurate loan payment calculation helps borrowers understand their financial commitments, compare loan options, and plan their budgets effectively.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What types of loans does this calculator work for?
A: It works for all SBM Bank Mauritius fixed-rate loans including home loans, personal loans, car loans, and eco-loans.

Q2: Does this include insurance or other fees?
A: No, this calculates only the principal and interest portion. Additional fees may apply to actual loan offers.

Q3: How does the interest rate affect payments?
A: Higher rates increase monthly payments significantly over the loan term. Even small rate differences can have large long-term impacts.

Q4: What's better - shorter term with higher payments or longer term with lower payments?
A: Shorter terms mean less total interest paid but higher monthly payments. Choose based on your monthly budget and total cost preferences.

Q5: Can I calculate partial early repayments?
A: This calculator shows fixed payments for the full term. For early repayment scenarios, consult with SBM Bank directly.