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

 

 

 

Share this post

32 thoughts on “How to Calculate Interest on Motorcar and Motorcycle Advance?

  1. Malik Muhammad Sajjad · Edit

    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

    Reply
  2. 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.

    Reply
  3. 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]

    Reply
  4. 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

    Reply
  5. 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

    Reply
  6. 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

    Reply
  7. syed dur e hussain · Edit

    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

    Reply
  8. 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

    Reply
  9. 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

    Reply
  10. 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.

    Reply
      1. 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.

        Reply
  11. 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.

    Reply

Post Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.