1. What is the Commercial Property Loan Calculator?

The Commercial Property Loan Calculator helps estimate monthly payments for business property loans in Malaysia. It uses standard amortization formulas to calculate repayment amounts based on loan amount, interest rate, and term.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( PMT \) — Monthly payment
• \( P \) — Principal loan amount (MYR)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (term in years × 12)

Explanation: The formula accounts for the time value of money, calculating equal monthly payments that pay off the loan plus interest over the term.

3. Importance of Loan Calculation

Details: Accurate payment estimation is crucial for business planning, cash flow management, and comparing different loan options when purchasing commercial properties in Malaysia.

4. Using the Calculator

Tips: Enter loan amount in MYR, annual interest rate in percentage, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is typical commercial loan interest in Malaysia?
A: Rates typically range from 3.5% to 6% depending on bank, loan type, and borrower's credit profile.

Q2: What is maximum loan term for commercial properties?
A: Most banks offer up to 20-25 years for commercial property loans in Malaysia.

Q3: Are there additional costs not included?
A: Yes, this calculates principal/interest only. Additional costs may include insurance, legal fees, and valuation fees.

Q4: How does BLR/BFR affect calculations?
A: This calculator uses fixed rates. For variable rates (BLR/BFR + spread), payments may change when rates adjust.

Q5: What is typical loan-to-value ratio?
A: Most banks finance 70-85% of commercial property value in Malaysia, requiring 15-30% down payment.