1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. For Maybank hire purchase loans in India, EMI payments contribute to 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 (INR)
• \( R \) — 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 its term with interest.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly financial commitment, compare loan offers, and plan their budgets accordingly.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is a hire purchase loan?
A: A hire purchase loan is a type of installment loan where the buyer pays for the asset in regular installments while using it.

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 prepayment charges?
A: Prepayment policies vary. Check with Maybank India for current prepayment terms and charges.

Q4: What factors affect EMI amount?
A: EMI depends on loan amount, interest rate, and tenure. Higher principal or rates increase EMI, while longer tenures reduce EMI but increase total interest.

Q5: Can I change my EMI during loan tenure?
A: Typically, EMI remains fixed unless you request a restructuring or make partial prepayments.