1. What is Bank Rakyat Personal Loan?

Bank Rakyat offers personal loans with fixed monthly payments calculated using the standard amortization formula. This calculator helps estimate your monthly payments based on principal amount, interest rate, and loan term.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

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

Explanation: The formula accounts for compound interest over the loan term, calculating a fixed monthly payment that pays off both principal and interest.

3. Importance of Loan Calculation

Details: Understanding your monthly payment helps with budgeting and ensures the loan is affordable. It also shows the total interest cost over the loan term.

4. Using the Calculator

Tips: Enter principal amount in MYR, annual interest rate as a percentage, and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator specific to Bank Rakyat Singapore?
A: While using Bank Rakyat's standard calculation method, this is a general calculator and actual loan terms may vary.

Q2: What's included in the monthly payment?
A: The payment includes both principal and interest components, calculated to fully repay the loan over the term.

Q3: How does loan term affect payments?
A: Longer terms reduce monthly payments but increase total interest paid. Shorter terms have higher payments but lower total cost.

Q4: Are there other fees not included?
A: This calculator doesn't account for processing fees, insurance, or other potential loan charges.

Q5: Can I use this for other types of loans?
A: This works for any fixed-rate installment loan using the same calculation method.