1. What is Bank Islam Personal Loan?

Bank Islam Personal Financing-i is a Sharia-compliant financing facility based on the concept of Tawarruq (commodity murabahah). It provides customers with cash financing for personal needs while adhering to Islamic principles.

2. How Does the Calculator Work?

The calculator uses the Islamic financing payment formula:

Where:

• \( P \) — Principal amount (MYR)
• \( r \) — Monthly profit rate (annual rate divided by 12)
• \( n \) — Number of months
• \( PMT \) — Monthly payment amount (MYR)

Explanation: The formula calculates fixed monthly payments that include both the principal and profit portions, ensuring equal installments throughout the financing tenure.

3. Sharia-Compliant Financing

Details: Unlike conventional loans that charge interest, Bank Islam's financing is based on a buy-and-sell agreement of commodities at a markup profit rate approved by Sharia principles.

4. Using the Calculator

Tips: Enter the principal amount in MYR, annual profit rate in percentage, and financing term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator accurate for Bank Islam financing?
A: Yes, this uses the standard Islamic financing formula that Bank Islam applies for personal financing-i products.

Q2: How is the profit rate determined?
A: The profit rate is based on the bank's financing package and your credit assessment, typically ranging from 4% to 18% per annum.

Q3: What's the maximum financing tenure?
A: Bank Islam typically offers personal financing with tenures from 1 to 10 years (12 to 120 months).

Q4: Are there any hidden charges?
A: There may be processing fees (usually 1% of financing amount) and takaful coverage, which are not included in this calculation.

Q5: Can I settle the financing early?
A: Yes, early settlement is allowed with potential rebate on the unpaid profit, calculated based on the Rule of 78 method.