1. What is the EMI Formula?

The EMI (Equated Monthly Installment) formula calculates the fixed payment amount a borrower pays each month on a hire purchase loan. 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 (AUD)
• \( R \) — Monthly interest rate (annual rate divided by 12, in decimal)
• \( N \) — Loan tenure in months

Explanation: The formula accounts for compound interest over the loan period, ensuring each payment reduces both principal and interest.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, assessing loan affordability, and comparing different loan options.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is hire purchase financing?
A: Hire purchase is a type of installment credit where the buyer pays for goods in regular installments while using them.

Q2: How does Maybank calculate interest?
A: Maybank uses reducing balance method where interest is calculated on the outstanding principal each month.

Q3: Are there any hidden charges?
A: This calculator shows basic EMI. Actual loans may include processing fees, insurance, or other charges.

Q4: Can I prepay my Maybank hire purchase loan?
A: Yes, but prepayment may involve certain terms and conditions or charges - check with Maybank.

Q5: Is this calculator accurate for all Maybank loans?
A: This provides an estimate for standard hire purchase loans. For specific products, consult Maybank directly.