Looking to calculate installments for your loan payment in Kuwait? Use this easy and accurate Loan Calculator App!
Determine how much money you can borrow and how much monthly loan installment you would pay for a certain time period on the basis of your nationality and income — instantly. This app works for loans as:
- Housing Loan Calculator / Housing Loan Calculator
- Auto Loan Calculator / Motor Loan Calculator
- Personal Loan Calculator / Consumer Loan Calculator
What is a Loan Calculator?
A Loan Calculator is referred to a calculator that can help you estimate the monthly payments required to pay back the certain type of loan you have taken. In addition, you also get to see how much you can afford to borrow from a bank based on your income and other factors.
The loan calculator can be used for:
- Housing Loan - A loan granted for buying a house or flat or similar properties
- Auto Loan - It is the amount borrowed to buy a vehicle like a car, motorcycle, etc.
- Consumer Loan - This is the type of loan that can be used to purchase household goods or personal devices
You can learn about loans here
How Do You Calculate a Loan Payment?
Using the Loan Calculator is simple. Below are the steps:
- Choose either “Borrow” or “Afford”: “Borrow” is selected by default. It gives you the loan amount you are eligible to borrow as per your salary. By selecting “Afford”, you can set the loan amount you want to borrow.
- Choose “Loan Type”: You can choose between a “Housing Loan”, “Auto Loan”, or “Consumer Loan” to calculate their installment.
- Nationality: Choose your nationality between “Kuwaiti” or “Bedoun”. For any other country, select nationality as “Expatriate”.
- Status: This is your employment status which can be either “Employed” - if you are a working professional or “Retired” - if you are not.
- Salary: You will only see this option if you had chosen “Borrow” in the first step. Here you have to put your monthly salary in KD.
- Loan Amount: If you choose “Afford” in the first step, you will see this field. Enter the “Loan Amount” you want to take in KD.
- Repayment Tenure (month): Set the total duration you need to repay the principal amount with this interactive field. It can be one of either: from 12 months to 60 months.
- Monthly Installment Amount (KD): This is the output of the loan calculator. It tells the amount you’d have to pay per month basis your inputs in the above fields.
How Does Loan Calculator Work?
The Loan Calculator aims to tell what monthly interest would incur on your loaned amount at a fixed interest rate. So, to calculate loans, it uses the mathematical formula of Simple Interest.
L = P * R *T
L = Loan Amount
P = The Principal Amount
R = Interest rate
T = The Loan Duration
Do note that the Loan Calculator considers the loans that are paid off in regular monthly installments over time, with fixed payments covering both the principal amount and interest. In case of a lapse of payment, your bank may charge extra interest. For more information, do get in touch with the loan issuing bank.