1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender each month for 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 (LKR)
• \( R \) — 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 equal monthly payments.

3. Understanding Hire Purchase Loans

Details: Maybank hire purchase loans in Sri Lanka are typically used for vehicle purchases. The interest rate is fixed, and the loan is secured against the purchased asset.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for Maybank hire purchase loans?
A: Interest rates vary but typically range between 10% to 18% per annum in Sri Lanka, depending on loan tenure and vehicle type.

Q2: Are there any additional charges besides interest?
A: Maybank may charge processing fees, documentation fees, and insurance premiums which are not included in this calculation.

Q3: Can I prepay my hire purchase loan?
A: Yes, but early settlement may involve prepayment charges. Check with Maybank for current policies.

Q4: How does tenure affect my EMI?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures have higher EMIs but lower total interest.

Q5: Is this calculator accurate for all Maybank loans?
A: This provides an estimate. Actual EMI may vary based on specific loan terms and fees. Always confirm with Maybank.