How to Calculate Interest on Motorcar and Motorcycle Advance?

Calculation of interest on Motorcar and Motorcycle Advance is really a great topic for the employees who don’t know the ABC of accounts. Most of the employees depend on auditors and accountants or other clerical staff to calculate the interest on the advances they have drawn. Some times they due to unawareness of the calculation of amount of interest many employees may pay more interest than the actual interest amount, this is really a financial loss for the employee.

For the conveyance of such employees I would like to mention here the of simple formula for such calculation. They can just calculate their own amount of interest of advance of interest rather depending on others.

 

Formula of Calculation of Interest

=Amount of Advance x Number of Installments x Rate of Interest/2400

The individual must remember the following things to calculate the amount of interest:

Amount of Advance for Motorcycle and Motorcar Advance

The amount of advance for Motorcar is Rs. 450,000/- and the amount of Motorcycle advance is Rs. 75,000/-

 

You would like to see: Rates and Conditions of Motorcycle, Cycle and Car Advance

Number of Installments for Motorcycle and Motorcar Advance

The number of installments for both the cases i.e Motorcycle and Motorcar Advance is 60.

Rate of Interest:

The rate of interest for both the cases is the same as the GP Fund Interest Rate. For example if you drawn the amount of advance in 2012-13 then you will use the interest rate of GP Fund of 2012-13.

Example of Calculation of  Motorcycle and Motorcar Advance

Suppose a person draws 75,000/- as motorcycle advance in January 2010, then the amount of interest will be as under:

75000 x 60 x 14.00/2400 = 26250/-

Thus in this way the employee will have to pay an interest of 26,250/ - and total amount along with interest will be Rs. 101,250/-

 

Don’t Miss: GP Fund Interest Rates 1963 to 2012-13

 

 

 

20 Comments

  1. tariq ali says:

    Which formula shall be applied if installment amounts and number of installments are different number. I mean diminishing formula.

  2. BuKHARi says:

    Salam

    what is the Interest Rate calculating formula on House Building Advance of 16 Grade APS...

  3. nasir says:

    madam jin ki basic salary 6300 hy kya wo b apply kr skty hen motorcycle ya motor car advance k lye? aur tareeqa kya hy apply ka???

  4. sanya says:

    After order from Islamabad High court of 20 % salary increase for all federal departments is still not implemented in many departments, why ???
    do you know any department has implemented this or not, plz confirm

  5. Zulfiqar Awan says:

    Dear Mam,

    One thing is clear as u mentioned above.

    Advance Amountx Number of monthly installmentxGP Fund Rate

    but: devide ka formaula samj ni aya...............jo ap na batya hi...

    2 x 12 = 100......what is "2", 12, and 100.

    Plz explain me.

    Regards

    Z.A. Awan

  6. Samiullah says:

    salam sister! my father is a Naib Qasid (BPS-2) In FG Education Deptt. He has drawn M.Cycle Advanced in Feb 2011. The total installments of M.Cycle Adv are 60. He is on LPR from 11 April, 2013 to 10 April 2014. The total amount of m.cycle advance can not be deposited during his remaining service which is about 10 months. The question is that the remaining amount will be submitted with interest or just actual amount will be deposited through TR.please guide me.

  7. Junaid says:

    Thanks shumaila.

  8. Kashif says:

    It is good information, but if u can describe what is (2x12x100) and our office is simply charging 12% which is in total makes highest markup thn the formula mentioned above please explain the formula so that i can able to debate with my office.

  9. Muhammad Farhan says:

    These formulas are very help full for the government employees, I am very thanks for this

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