Lowest Rate Personal Loan 2021 Calculator Malaysia

Loan Payment Formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Monthly Payment (PMT):

Total Payment:

Total Interest:

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1. What is the Personal Loan Payment Formula?

The personal loan payment formula calculates fixed monthly payments for amortizing loans. It accounts for principal amount, interest rate, and loan term to determine equal monthly installments that pay off the loan completely by the end of the term.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:

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

Explanation: The formula calculates the fixed payment amount that covers both principal and interest each month, with interest portion decreasing and principal portion increasing over the loan term.

3. Malaysia's Lowest Personal Loan Rates 2021

Details: As of 2021, CIMB offers one of the lowest personal loan rates in Malaysia at 4.38% p.a. (example rate). Other competitive lenders include Maybank, RHB, and Public Bank.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between flat rate and reducing balance rate?
A: Flat rate calculates interest on original principal throughout the term, while reducing balance (like this calculator) calculates interest on remaining balance, resulting in lower total interest.

Q2: Are there other fees besides interest?
A: Most personal loans have processing fees (1-3% of loan amount) and sometimes insurance charges. These are not included in this calculation.

Q3: Can I get lower than 4.38% rate?
A: Some banks offer promotional rates below 4% for preferred customers or specific professions. Government servants often qualify for special lower rates.

Q4: How does loan term affect payments?
A: Longer terms reduce monthly payments but increase total interest paid. Shorter terms mean higher monthly payments but less total interest.

Q5: Is prepayment allowed?
A: Most banks allow prepayment but may charge early settlement fees (typically 1-3% of outstanding balance).