Yes. Monthly instalment amount is combined of principal and interest/handling fee payable.

Under the “Rule of 78”, the proportion of interest / handling fee will be more in earlier instalments comparing to the later ones.

Below is an example to demonstrate the calculation of interest / handling fee under “Rule of 78”.

Please note that the bank may at its discretion apportion the monthly repayments between payment of interest and repayment of principal.

For example:

· If a Card Statement Instalment Program is to be repaid over 12 instalments, the total interest / handling fee will be divided into 78 portions (12 + 11 + 10 + … + 1 = 78).

· 12/78ths of the total interest/handling fee is allocated as the first instalment’s portion of the interest / handling fee payable, 11/78ths of the total interest/handling fee is allocated as the second instalment’s portion and so on until the twelfth instalment, at which 1/78th of the total interest / handling fee is allocated as that instalment’s portion of the interest / handling fee payable.