1. What is the Cheapest Personal Loan Calculator?

This calculator helps you estimate monthly payments for personal loans from Malaysian banks, including the cheapest options like CIMB at 4.38% p.a. It uses the standard loan payment formula to calculate your repayment amount.

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 months)
• \( PMT \) — Monthly payment amount (MYR)

Explanation: The formula accounts for compound interest over the loan term to calculate fixed monthly payments that fully amortize the loan.

3. Importance of Loan Calculation

Details: Understanding your monthly payment helps with budgeting and comparing loan offers. The cheapest loans typically have the lowest interest rates, like CIMB's 4.38% p.a. for qualified borrowers.

4. Using the Calculator

Tips: Enter the loan amount in MYR, annual interest rate (e.g., 4.38 for CIMB's rate), and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Which Malaysian bank offers the cheapest personal loan?
A: As of 2024, CIMB offers one of the cheapest rates at 4.38% p.a. for qualified applicants, but rates vary based on credit profile.

Q2: What's the difference between flat rate and reducing balance?
A: This calculator uses reducing balance method (interest calculated on remaining principal), which is standard for personal loans.

Q3: 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.

Q4: Are there other fees besides interest?
A: Some banks charge processing fees (typically 1-3% of loan amount) which aren't included in this calculation.

Q5: What's the maximum personal loan amount in Malaysia?
A: Most banks offer up to 10x monthly salary, with minimum amounts typically around MYR 5,000.