1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over time, the loan is paid off in full.

2. How Does the Calculator Work?

The calculator uses the standard 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 would pay off the loan with interest over the specified tenure.

3. Understanding Loan Components

Principal: The original sum of money borrowed in a loan.
Interest Rate: The cost of borrowing the principal, usually expressed as an annual percentage.
Tenure: The duration over which the loan is to be repaid.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: How does Maybank calculate interest?
A: Maybank uses reducing balance method where interest is calculated on the outstanding principal each month.

Q2: What affects my EMI amount?
A: EMI depends on three factors - loan amount, interest rate, and loan tenure. Higher amount/rate or shorter tenure increases EMI.

Q3: Can I prepay my Maybank loan?
A: Yes, Maybank allows prepayment but may charge a prepayment penalty depending on loan type and terms.

Q4: How can I reduce my total interest payment?
A: You can either opt for shorter tenure (higher EMI) or make partial prepayments when possible.

Q5: Does Maybank offer fixed rate loans?
A: Maybank offers both fixed and variable rate loans depending on the loan product.