1. What is the EMI Formula?

The EMI (Equated Monthly Installment) formula calculates the fixed payment amount a borrower makes to a lender at a specified date each calendar month. The formula accounts for both principal and interest components of the loan.

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
• \( EMI \) — Equated monthly installment (MYR)

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

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, comparing loan offers, and ensuring the monthly payment fits within your budget before committing to a loan.

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: What is included in the EMI payment?
A: Each EMI payment includes both principal repayment and interest charges for that month.

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 is Maybank2u?
A: Maybank2u is Maybank's online banking platform where customers can apply for loans and access financial services.

Q4: Are there other charges besides EMI?
A: Some loans may have processing fees, insurance, or other charges not included in the EMI calculation.

Q5: Can I prepay my Maybank loan?
A: Maybank may allow prepayment with certain terms and conditions, possibly including prepayment charges.