1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. For house loans in Malaysia, EMI payments are used to pay off both principal and interest each month.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (MYR)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Loan tenure in months
• \( PMT \) — Monthly EMI payment (MYR)

Example: For a MYR 500,000 loan at 2.88% p.a. for 30 years (360 months), the calculation would be:

• Monthly interest rate = 2.88%/12 = 0.0024
• EMI = 500,000 × 0.0024 × (1.0024)^360 / ((1.0024)^360 - 1)
• Resulting EMI ≈ MYR 2,075.71

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, assessing loan affordability, and comparing different loan offers from banks in Malaysia like Maybank, CIMB, or Public Bank.

4. Using the Calculator

Tips: Enter the principal amount in MYR, annual interest rate (e.g., 2.88 for 2.88%), and loan tenure in years. The calculator will show monthly EMI, total interest, and total payment.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical home loan interest rate in Malaysia?
A: As of 2023, rates typically range from 2.88% to 4.5% p.a. depending on bank and borrower's profile.

Q2: How does loan tenure affect EMI?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q3: What is the maximum home loan tenure in Malaysia?
A: Typically up to 35 years or until age 65-70, whichever comes first.

Q4: Are there other charges besides interest?
A: Yes, may include processing fees, legal fees, valuation fees, and MRTA (mortgage reducing term assurance).

Q5: Can I prepay my home loan?
A: Most banks allow prepayment with possible charges (typically 1-3% of prepaid amount for first few years).