1. What is the BDO Multi Purpose Loan?

The BDO Multi Purpose Loan is a flexible loan product that can be used for various purposes such as home improvement, education, travel, or other personal needs. It offers competitive interest rates and flexible payment terms.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

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

Explanation: This formula calculates the fixed monthly payment required to pay off a loan over its term, including both principal and interest.

3. Understanding Loan Payments

Details: Each payment consists of both principal and interest. Early in the loan, more of each payment goes toward interest. As the loan matures, more goes toward principal.

4. Using the Calculator

Tips: Enter the loan amount in PHP, the annual interest rate (without the % sign), and the loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for BDO Multi Purpose Loans?
A: Interest rates vary based on creditworthiness and current market conditions, typically ranging from 10% to 24% per annum.

Q2: What is the maximum loan term available?
A: BDO typically offers terms from 12 to 60 months, depending on the loan amount and purpose.

Q3: Are there any processing fees?
A: Yes, BDO usually charges a processing fee of 1-3% of the loan amount, depending on the product.

Q4: Can I prepay my loan?
A: Yes, but prepayment penalties may apply depending on the terms of your loan agreement.

Q5: How accurate is this calculator?
A: This provides an estimate. Actual loan terms may vary based on BDO's final approval and specific product features.