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. For hire purchase loans, EMI payments contribute to both the principal and interest.

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 over the specified period with compound interest.

3. Understanding Hire Purchase

Details: Maybank hire purchase is a financing arrangement where the bank purchases an asset (like a car) and allows the customer to pay for it in installments while using it. Ownership transfers after final payment.

4. Using the Calculator

Tips: Enter the principal amount in MYR, annual interest rate (e.g., 3.5 for 3.5%), and loan tenure in months (e.g., 60 for 5 years).

5. Frequently Asked Questions (FAQ)

Q1: What's included in Maybank hire purchase EMI?
A: The EMI typically includes principal and interest. Insurance and other fees may be separate.

Q2: How does tenure affect EMI?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures have higher EMIs but lower total cost.

Q3: Are there prepayment penalties?
A: Maybank may charge early settlement fees. Check the latest terms with the bank.

Q4: Is the interest rate fixed?
A: Most hire purchase loans have fixed rates, but confirm with Maybank as terms may vary.

Q5: What's the minimum/maximum loan amount?
A: This varies by product (car, equipment, etc.) and borrower profile. Check with Maybank for current limits.