1. What is Bank Islam Personal Loan?

Bank Islam Personal Financing-i is a Sharia-compliant financing facility that provides customers with cash financing for their personal needs while adhering to Islamic financing principles.

2. How Does the Calculator Work?

The calculator uses the Islamic financing payment formula:

Where:

• \( P \) — Principal amount (MYR)
• \( r \) — Monthly profit rate (annual rate ÷ 12)
• \( n \) — Number of months
• \( PMT \) — Monthly payment amount (MYR)

Explanation: This formula calculates fixed monthly payments that include both principal and profit portions, structured to comply with Islamic financing principles.

3. Sharia-Compliant Financing

Details: Bank Islam's personal financing operates under the concept of Tawarruq (commodity murabahah), where the bank purchases an asset and sells it to the customer on deferred payment basis at an agreed profit rate.

4. Using the Calculator

Tips: Enter principal amount in MYR, annual profit rate in percentage, and loan term in months. All values must be valid (principal ≥ 1000, rate between 0.01-20%, term 1-120 months).

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator specific to Bank Islam Malaysia?
A: Yes, this calculator is designed for Bank Islam Malaysia's personal financing products in 2025.

Q2: How does Islamic financing differ from conventional loans?
A: Islamic financing avoids interest (riba) and instead uses profit-sharing or trade-based contracts that are asset-backed.

Q3: What is the typical profit rate for Bank Islam personal financing?
A: Rates vary based on credit assessment but typically range between 4% to 10% per annum as of 2025.

Q4: Are there any hidden charges?
A: Bank Islam may charge processing fees (usually 1% of financing amount) and takaful (insurance) which are not included in this calculation.

Q5: Can I settle the financing early?
A: Yes, early settlement is allowed with possible rebate (ibra') on unearned profit according to Sharia principles.