1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower makes to a lender at a specified date each calendar month. 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 (MYR)
• \( R \) — Monthly interest rate (annual rate divided by 12, as decimal)
• \( N \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that would pay off the loan with interest over the specified period.

3. Understanding Loan Terms

Principal: The original sum of money borrowed.
Interest Rate: The annual rate charged for borrowing.
Tenure: The loan repayment period in months.
Total Payment: Sum of all EMI payments over the loan term.
Total Interest: The cost of borrowing the principal amount.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is Maybank's typical personal loan interest rate?
A: Rates vary but typically range from 6.5% to 12% per annum depending on credit profile and loan amount.

Q2: How does tenure affect EMI?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q3: Are there any processing fees?
A: Maybank may charge processing fees (typically 1-3% of loan amount) which are not included in this calculation.

Q4: Can I prepay my loan?
A: Most personal loans allow prepayment, sometimes with a small penalty fee (check terms).

Q5: What is the maximum loan amount?
A: Maybank offers personal loans up to MYR 200,000 depending on income and creditworthiness.