1. What is the EMI Formula?

The EMI (Equated Monthly Installment) formula calculates the fixed payment amount a borrower pays each month to repay a loan. It considers the principal amount, interest rate, and loan tenure.

2. How Does the Calculator Work?

The calculator uses the EMI formula:

Where:

• \( P \) — Principal loan amount (RM)
• \( R \) — Monthly interest rate (Annual rate / 12, as decimal)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment (RM)

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

3. Importance of EMI Calculation

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

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What factors affect EMI amount?
A: EMI depends on three main factors - loan amount, interest rate, and loan tenure. Higher loan amounts or interest rates increase EMI, while longer tenures reduce EMI.

Q2: Can I reduce my EMI payments?
A: Yes, by either negotiating a lower interest rate or opting for a longer repayment tenure, though this increases total interest paid.

Q3: How does Maybank calculate interest?
A: Maybank uses reducing balance method where interest is calculated on the outstanding principal each month.

Q4: Are there prepayment charges?
A: Maybank may charge a fee for early loan settlement. Check current terms as policies may change.

Q5: What's included in the EMI?
A: EMI includes both principal and interest components. Insurance and other charges are typically separate.