Last Updated on April 9, 2022 by Galaxy World
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. Sometimes they due to unawareness of the calculation of the 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 a simple formula for such calculation. They can just calculate their own amount of interest or advance of interest rather than depending on others.
Formula of Calculation of Interest
=Amount of Advance x Number of Installments +1 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. 10,00,000/- and the amount of Motorcycle advance is Rs. 100,000/-
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 cases is the same as the GP Fund Interest Rate. For example, if you have 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 the total amount along with interest will be Rs. 101,250/-
Don’t Miss: GP Fund Interest Rates 1963 to 2012-13
I have avail motorcycle advance Rs.50, 000/- w. e. f 6-3-2009 and have paid back Rs.835 x 61 + Rs.735 x1 =62 instalments
an amount of Rs.1670 paid as excess, it could be adjusted in interest amount or not, if not how can it be got refunded
Yes, it can be adjusted /refunded.
اس فارمولا میں 2400 استعمال ہو رہا ہے کیا کسی کو پتا ہے ہم 2400 سے کیوں تقسیم کر رہے ہیں تمام ٹوٹل کو۔ ؟؟؟؟؟؟؟؟؟؟؟؟؟؟؟؟؟
2400 سے تقسیم کرنے کی حقیقت کیا ہے۔
In motor cycle advance intrest rate formula ma divide bt 2400…2400 shows what? Please reply
I received Motor Cycle Advance in January, 2018. The first installment of Motor Cycle Advance was deducted by me in February, 2018. My interest will be on receiving amount of Motor Cycle Advance from January, 2018 or my interest will be made on my first deduction installment of February, 2018. I paid the interest February, 2018 to July, 2019 Total 18 month. But the aduit has been objection my pay bill that your interest should be calculated from January, 2018 install of First deduction of MCA in February, 2019. It my be clarified. Thanks
Thankyou sir I needed this formula. However I have a slight confusion. Although I get what the advance is, no. of installment and rate of interest but I don’t get the reason behind division by ‘2400’. Would really appreciate if kindly explained. Hope to hear from you. Thank you.
Hi sir,
i am from Forest department – Nehru Zoological Park, Hyderabad. I want know the formula of Motor Cycle Advance with illustration, hence, please provide me as soon as possible, here i am giving my mail id: [email protected]
AOA SIR,
M GAR BANAE K LIE LOAN LINA CHAHTA HO KINDLY MUJE BATA D K AGAR 3 LAK 3 SAL K LIE LON TO KITNA JAMA KARNA PARE GA OR TARIQA KAR KIA HAI MERE BASIC PAY 28000 HAI THNAKS
mari salary 35000 hey our mey 1300000 ropy loan chahta ho. es par markup ketna ho ga our installment ketna jama karna ho ga . 5 year keliye
which One, from Bank or Govt?
Respected Madam
I am working regular job last 15 year . My adhoc service is 7 year . i want to know two different issue
1. Adhoc service is include in regular service if yes please send me the notification copy please .
2. And my Adhoc service is counted for promotion . please send me notification copy
Regards
Asif Hussain
Dear Asif I have not the copies of the Notifications.
Dear madam
Plz mujhe bataein k HBA Motor Car and Motor Cycle advances k lye kaun se documents required hain
Thnxs
Dear ASRAR you have to contact your office, they will give you complete list.
Main traffic warden Faisalabad say hon.mari basic pay 22500 ha .house k lay kitna loan lay sakta hon ur please calculate bi kar dain five years installments hon tu interest kitna ho ga
Which formula shall be applied if installment amounts and number of installments are different number. I mean diminishing formula.
Salam
what is the Interest Rate calculating formula on House Building Advance of 16 Grade APS…
Dear Nukhari it is the same as Motor Car or Motor Cycle Advance.
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???
Dear Nasir minimum 7500/- PM basic pay hona zaroori hay Motor Cycle Advance kay liay. Application, Application proforma, latest pay slip send to the department.
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
Dear Sanya abhi tak kisi department main yeh implement nahi hua. Sirf un main hua hay jin kay liay pehlay notification jari hua tha.
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
Dear about the number 2 I m not confirm but the number 12 is taken as the twelve months of a year. 100 is used here for percentage.
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.
Dear Sami Ullah the total amount alongwith interest will have to be deposited on TR.
how much interest will be deposited? i mean to say that interest on the whole advance amount will be deposited or otherwise? please don’t mind as the point is still not clear to me.
Dear the amount of the interest is always taken the rate of GP Fund of the year during which this advance has been taken.
thanx alot
ministry of finance se is ka letter alag nikalta yeh gp fund k interest rate pr calculate nhn hota…
Jo rate GP ka hota ha usi year jis year advance lia hota hay wohi rate advance main use hota hay Thanks
Thanks shumaila.
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.
Ur department and ur advance amount and Date plz send full detail on email. So that i may explain it in better way
Mail Sent
These formulas are very help full for the government employees, I am very thanks for this
Thank You Dear for admiring it.