EMI Formula:
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EMI (Equated Monthly Installment) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. It's commonly used for bank loans in the Philippines to repay both principal and interest each month.
The calculator uses the standard EMI formula:
Where:
Explanation: The formula calculates the fixed payment amount that includes both principal repayment and interest charges.
Details: Calculating EMI helps borrowers understand their monthly obligations, compare loan offers, and plan their finances before committing to a loan.
Tips: Enter principal amount in PHP, annual interest rate in percentage, and loan tenure in months. All values must be positive numbers.
Q1: What is a typical interest rate in the Philippines?
A: Personal loan rates typically range from 6% to 24% annually depending on the bank, loan type, and borrower's creditworthiness.
Q2: How does loan tenure affect EMI?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures mean higher EMI but lower total interest.
Q3: Are there other charges not included in EMI?
A: Some loans may have processing fees, insurance, or other charges not reflected in the EMI calculation.
Q4: Can I prepay my loan?
A: Most Philippine banks allow prepayment but may charge a fee. Prepayment reduces total interest paid.
Q5: How accurate is this calculator?
A: This provides a standard EMI calculation. Actual loan terms may vary based on bank policies and your credit profile.