Personal Loan Calculator Bank Islam App

Bank Islam Personal Loan Payment Formula:

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

Monthly Payment (PMT):

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1. What is Bank Islam Personal Loan?

Bank Islam Malaysia offers Shariah-compliant personal financing through their mobile app. The financing uses the concept of Qard (benevolent loan) with profit rate instead of conventional interest.

2. How Does the Calculator Work?

The calculator uses the Bank Islam payment formula:

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

Where:

\( P \) — Principal amount (MYR)
\( r \) — Monthly profit rate (decimal)
\( n \) — Loan term in months
\( PMT \) — Monthly payment amount (MYR)

Explanation: This formula calculates the fixed monthly payment required to repay the principal plus profit over the specified term.

3. Importance of Payment Calculation

Details: Understanding your monthly payment helps with financial planning and ensures the loan is affordable within your budget.

4. Using the Calculator

Tips: Enter principal amount in MYR, monthly profit rate as decimal (e.g., 0.01 for 1%), and loan term in months. All values must be positive.

5. Frequently Asked Questions (FAQ)

Q1: How is Bank Islam's personal financing different?
A: It's Shariah-compliant using Qard with profit instead of conventional interest-based loans.

Q2: Where can I find the profit rate?
A: Check Bank Islam's official website or mobile app for current profit rates.

Q3: Are there other fees involved?
A: There may be processing fees or takaful coverage. Check with Bank Islam for complete details.

Q4: Can I settle the loan early?
A: Early settlement may be possible with certain terms. Consult Bank Islam for their early settlement policy.

Q5: How accurate is this calculator?
A: This provides an estimate. For exact figures, consult Bank Islam's official calculation.