1. What is Personal Loan Payment Calculation?

The personal loan payment calculation helps you determine your monthly payments for loans from Malaysian banks like CIMB, Maybank, or Public Bank. It uses the standard amortization formula to calculate fixed monthly payments throughout the loan term.

2. How Does the Calculator Work?

The calculator uses the loan payment formula:

Where:

• \( P \) — Principal loan amount (MYR)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Number of monthly payments (loan term in years × 12)
• \( PMT \) — Monthly payment amount (MYR)

Example: For a RM50,000 loan at 4.38% p.a. for 5 years, the monthly payment would be approximately RM928.72.

3. Importance of Loan Calculation

Details: Understanding your monthly payments helps with budgeting and comparing loan offers from different banks. It shows the true cost of borrowing when interest rates vary between lenders.

4. Using the Calculator

Tips: Enter the principal amount in MYR, annual interest rate (e.g., 4.38 for 4.38%), and loan term in years. The calculator will show your monthly payment, total repayment amount, and total interest paid.

5. Frequently Asked Questions (FAQ)

Q1: What are typical interest rates in Malaysia?
A: Rates vary by bank and credit profile, typically ranging from 3.5% to 9% p.a. for personal loans.

Q2: How does loan term affect payments?
A: Longer terms reduce monthly payments but increase total interest paid. Shorter terms have higher payments but lower total cost.

Q3: Are there other fees to consider?
A: Yes, some banks charge processing fees (1-3% of loan amount) or insurance. These aren't included in this calculation.

Q4: Can I get a lower interest rate?
A: Rates depend on your credit score, income, and relationship with the bank. Negotiate or compare offers.

Q5: Is this calculation accurate for all loans?
A: This works for fixed-rate term loans. Credit cards or variable-rate loans use different calculations.