1. What is the PMT Formula?

The PMT formula calculates the fixed monthly payment required to pay off a loan over a specified term, including interest. It's the standard formula used by banks and financial institutions for amortizing loans.

2. How Does the Calculator Work?

The calculator uses the PMT formula:

Where:

• \( P \) — Principal loan amount (PHP)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Number of monthly payments (loan term in months)
• \( PMT \) — Monthly payment amount (PHP)

Explanation: The formula accounts for both principal repayment and interest charges, distributing payments evenly over the loan term.

3. Importance of Loan Calculation

Details: Understanding your monthly payment helps with budgeting and financial planning. It allows you to compare different loan offers and choose the most suitable option.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for Maybank personal loans?
A: Maybank Philippines personal loan rates typically range from 10% to 24% per annum, depending on creditworthiness and loan terms.

Q2: Are there other fees besides interest?
A: Maybank may charge processing fees, documentary stamps tax, and other charges. These are not included in this calculator.

Q3: Can I prepay my loan?
A: Maybank allows prepayment but may charge prepayment fees. Check with the bank for current policies.

Q4: 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.

Q5: Is this calculator accurate for all Maybank loans?
A: This provides an estimate. Actual loan terms may vary based on credit assessment and current bank policies.