1. What is the Personal Loan Eligibility Calculator?

This calculator helps determine the maximum loan amount you may be eligible for under Malaysia's government-backed personal loan schemes based on your affordable monthly payment, interest rate, and loan term.

2. How Does the Calculator Work?

The calculator uses the loan eligibility formula:

Where:

• \( P \) — Maximum loan amount (MYR)
• \( PMT \) — Affordable monthly payment (MYR)
• \( r \) — Monthly interest rate (decimal)
• \( n \) — Loan term in months

Explanation: The formula calculates the present value of a series of future payments (annuity) to determine the maximum loan amount you can afford.

3. Importance of Loan Eligibility Calculation

Details: Understanding your loan eligibility helps in financial planning and ensures you don't overcommit to debt payments that may strain your monthly budget.

4. Using the Calculator

Tips: Enter your comfortable monthly payment amount, the annual interest rate offered, and your preferred loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good interest rate for government loans in Malaysia?
A: Government-backed loans typically offer lower rates than commercial banks, often between 4-6% annually.

Q2: How does loan term affect eligibility?
A: Longer terms increase eligibility but result in higher total interest paid. Shorter terms reduce eligibility but save on interest.

Q3: What factors affect my actual loan approval?
A: Besides this calculation, lenders consider credit score, income stability, debt-to-income ratio, and employment status.

Q4: Are there government loan schemes with special rates?
A: Yes, Malaysia offers special loan programs for civil servants, Bumiputera entrepreneurs, and other targeted groups.

Q5: How accurate is this calculator?
A: This provides an estimate. Actual loan offers may include additional fees or different calculation methods.