1. What is KCB Salary Advance?

KCB Salary Advance is a short-term loan facility offered by KCB Bank in Sri Lanka to salaried individuals, allowing them to borrow against their future salary payments with convenient repayment terms.

2. How EMI Calculation Works

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (LKR)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Loan term in months

Explanation: The formula calculates the fixed monthly payment (EMI) that includes both principal and interest components.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, ensuring the loan repayment fits within your monthly budget without causing financial strain.

4. Using the Calculator

Tips: Enter the loan amount in LKR, annual interest rate in percentage, and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for KCB Salary Advance?
A: Interest rates vary but typically range between 12% to 18% per annum depending on the borrower's profile and current bank policies.

Q2: What is the maximum repayment period?
A: Salary advances usually have short terms, typically up to 12 months, but this may vary based on the bank's policies.

Q3: Are there any processing fees?
A: Most banks charge a processing fee (typically 1-2% of loan amount) and other applicable charges. Check with KCB for current fee structure.

Q4: Can I prepay my salary advance?
A: Most banks allow prepayment, sometimes with a prepayment penalty. Check KCB's terms for specific details.

Q5: How does this compare to credit card cash advances?
A: Salary advances typically have lower interest rates than credit card cash advances and fixed repayment terms.