1. What is the EMI Formula?

The EMI (Equated Monthly Installment) formula calculates the fixed payment amount a borrower makes to a lender each month for a car loan. The formula accounts for the principal amount, interest rate, and loan tenure.

2. How Does the Calculator Work?

The calculator uses the EMI formula:

Where:

• \( P \) — Principal loan amount (MYR)
• \( R \) — Monthly interest rate (annual rate divided by 12, in decimal)
• \( N \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that includes both principal and interest components over the loan period.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly financial commitment, compare loan offers, and plan their budget before taking a car loan.

4. Using the Calculator

Tips: Enter the principal amount in MYR, annual interest rate (percentage), and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for Maybank car loans?
A: Maybank car loan rates typically range from 2.5% to 4.5% per annum depending on the loan tenure and vehicle type.

Q2: How does loan tenure affect EMI?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q3: What factors affect car loan approval?
A: Factors include credit score, income, debt-to-income ratio, vehicle age, and loan-to-value ratio.

Q4: Are there other charges besides EMI?
A: Yes, there may be processing fees, insurance, and other administrative charges not included in EMI calculation.

Q5: Can I prepay my Maybank car loan?
A: Yes, but early settlement may involve prepayment charges. Check with Maybank for current terms.