1. What is Union Bank Credit Card Loan Amortization?

The Union Bank Credit Card Loan Amortization calculator helps you understand how your monthly payments are divided between principal and interest over the life of your loan. It provides a detailed repayment schedule showing the gradual reduction of your outstanding balance.

2. How Does the Calculator Work?

The calculator uses the following formulas:

Where:

• Outstanding Balance — Remaining principal at start of month (PHP)
• R — Monthly interest rate (APR / 12, as a decimal, e.g., 36%/12)
• EMI — Equated monthly installment (PHP)

Explanation: Each payment consists of both principal and interest. Early payments have higher interest components, while later payments have higher principal components.

3. Importance of Amortization Schedule

Details: Understanding your amortization schedule helps you see the true cost of borrowing, plan your finances, and consider strategies like early repayment to save on interest.

4. Using the Calculator

Tips: Enter the loan amount in PHP, annual interest rate (APR) in percentage, and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between APR and interest rate?
A: APR (Annual Percentage Rate) includes both the interest rate and any additional fees, representing the true cost of borrowing.

Q2: Can I pay off my loan early?
A: Yes, but check with Union Bank about any prepayment penalties. Early repayment reduces total interest paid.

Q3: Why does most of my early payment go toward interest?
A: This is standard in amortizing loans because interest is calculated on the outstanding balance, which is highest at the beginning.

Q4: How can I reduce my total interest payment?
A: Consider a shorter loan term or making additional principal payments when possible.

Q5: Are there other fees not included in this calculation?
A: This calculator shows principal and interest only. Your actual payment may include other fees like insurance or service charges.