EMI Formula:
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The EMI (Equated Monthly Installment) formula calculates the fixed payment amount a borrower pays each month for a housing loan. It considers the principal amount, interest rate, and loan tenure.
The calculator uses the standard EMI formula:
Where:
Explanation: The formula calculates the fixed monthly payment that pays off both principal and interest over the loan term.
Details: Understanding your EMI helps in financial planning, comparing loan offers, and determining affordability before committing to a housing loan.
Tips: Enter the principal amount in MYR, annual interest rate in percentage, and loan tenure in years. All values must be positive numbers.
Q1: How does Maybank's housing loan compare to RHB?
A: Maybank and RHB offer competitive housing loan rates in Malaysia. This calculator provides comparable EMI estimates for both banks.
Q2: What affects my EMI amount?
A: EMI depends on three factors: loan amount (higher amount = higher EMI), interest rate (higher rate = higher EMI), and tenure (longer tenure = lower EMI but more interest paid overall).
Q3: Should I choose a longer tenure to reduce EMI?
A: While longer tenure reduces EMI, you'll pay more interest overall. Choose the shortest tenure you can comfortably afford.
Q4: Are there other charges besides EMI?
A: Yes, there may be processing fees, insurance, and other charges. Consult with the bank for complete cost details.
Q5: Can I prepay my Maybank housing loan?
A: Most banks allow prepayment, sometimes with charges. Check Maybank's current prepayment policies.