I have already published a detailed article on the calculation of interest amount manually on Motorcar, Motorcycle, and House Building Advance. At the request of the visitors of my site, I am today publishing a detailed article on “Calculation of Motorcycle/Motorcar/House Building Advance Interest in MS Excel Sheet”.
Calculation of Interest on Motorcar & Motorcycle Advance
Generally, the Motorcar & Motorcycle Advance refundable amount is in 60 monthly installments. The interest amount will further increase the number of installments. 60 installments are for the amount that is taken in advance. A sum of Rs. 75,000 is granted as Motorcycle Advance provided the basic pay of the employee is between Rs.7501/- to Rs/19,999/- while a sum of Rs. 450,000/- is granted as Motorcar Advance provided the Basic Pay of the employee is Rs.20,000/- or more.
Just enter the total amount, the number of installments, and the interest rate during which the advance was taken.
Calculation of Interest on House Building Advance
The return of HBA Advance is in 120 monthly installments. For Non-Gazetted Employees, the amount is interest-free while the Gazetted Employees have to pay the Interest on the House Building Advance. 120 monthly installments are for the actual amount drawn as HBA while the interest amount will increase the number of installments.
36 Basic Pays are granted as HBA and the minimum service for the same is 10 years.
Just also enter the total amount taken as HBA, the number of installments, and the interest rate during which the advance was taken.
Note: Interest Rate is the same as GP Fund Annual Interest Rate and it is taken from the year during which the amount has been taken as Advance.
Suppose your amount of advance is passed from July 2012 to June 2013 then the interest rate of the year 2012-13 will be applicable.