1. What is the Credit Card Limit Calculation?

The credit card limit for government employees in Pakistan is typically calculated as a multiple of their annual salary. This helps determine the maximum amount they can borrow using their credit card.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Government\ Salary \) — Annual salary in PKR
• \( Factor \) — Multiplication factor (typically between 2-3)

Explanation: The factor is determined by the bank based on the employee's creditworthiness and other financial factors.

3. Importance of Credit Limit Calculation

Details: Knowing your potential credit limit helps in financial planning and ensures you don't apply for cards beyond your repayment capacity.

4. Using the Calculator

Tips: Enter your annual government salary in PKR and the factor provided by your bank. Default factor is set to 2.5 which is commonly used.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical factor range for government employees?
A: Most banks use factors between 2.0 to 3.0 for government employees in Pakistan.

Q2: Does this apply to all government employees?
A: Yes, this calculation is standard for federal and provincial government employees in Pakistan.

Q3: Can the actual limit differ from this calculation?
A: Yes, banks may adjust the limit based on credit history, existing debts, and other financial obligations.

Q4: Is this limit per card or combined?
A: This calculates the potential limit for a single card. Combined limits across multiple cards may be higher.

Q5: How often should I recalculate my limit?
A: Recalculate whenever your salary changes or when applying for a new credit card.