1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower makes to a lender at a specified date each calendar month. It includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

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

Explanation: The formula calculates the fixed monthly payment that would completely pay off the loan over its term, including both principal and interest.

3. Understanding Loan Terms

Details: The principal is the original sum borrowed. Interest is the cost of borrowing that principal amount. The tenure is the agreed repayment period.

4. Using the Calculator

Tips: Enter the principal amount in PHP, annual interest rate in 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 Citibank loans in Philippines?
A: Interest rates vary but typically range from 10% to 24% per annum depending on loan type and creditworthiness.

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: Are there any hidden charges in EMI calculation?
A: This calculator shows principal and interest only. Actual loans may include processing fees, insurance, or other charges.

Q4: Can I prepay my Citibank loan?
A: Most Citibank loans allow prepayment, sometimes with a prepayment penalty. Check your loan agreement.

Q5: How accurate is this calculator?
A: This provides a close estimate but actual EMI may vary slightly due to rounding methods or additional charges.