1. What is the EMI Formula?

The EMI (Equated Monthly Installment) formula calculates the fixed payment amount a borrower makes each month to repay a home loan. The formula accounts for principal amount, interest rate, and loan tenure.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (SGD)
• \( R \) — Monthly interest rate (annual rate / 12, as decimal)
• \( N \) — Loan tenure in months

Explanation: The formula accounts for both principal repayment and interest payment components of each EMI installment.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly financial commitment and plan their finances accordingly when taking a home loan.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for Maybank home loans in Singapore?
A: Rates vary but typically range between 1.5% to 3.5% per annum depending on market conditions and loan package.

Q2: What is the maximum loan tenure available?
A: In Singapore, the maximum loan tenure is typically up to 30 years or until the borrower reaches age 65, whichever is shorter.

Q3: Are there other fees besides the EMI?
A: Yes, there may be processing fees, legal fees, and valuation fees. Some loans also have lock-in periods with prepayment penalties.

Q4: Can I prepay my home loan?
A: Most loans allow prepayment but may charge a penalty during the lock-in period (typically 1-3 years).

Q5: How does the interest rate affect my EMI?
A: Higher interest rates increase your EMI amount. A small rate change can significantly impact your total interest paid over the loan tenure.