1. What is RACQ Personal Loan EMI?

The RACQ Personal Loan EMI (Equated Monthly Installment) is the fixed payment amount a borrower makes each month to repay their loan. It includes both principal and interest components, calculated using standard amortization formulas.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (AUD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Loan term in months
• \( PMT \) — Monthly payment amount (AUD)

Explanation: The formula accounts for compound interest over the loan term, distributing payments equally each month.

3. Understanding Loan Parameters

Details: RACQ personal loans typically offer amounts from AUD 5,000 to AUD 70,000 with terms from 1 to 7 years. Interest rates range from 5.99% to 12.99% p.a. depending on creditworthiness.

4. Using the Calculator

Tips: Enter loan amount in AUD, annual interest rate (5.99-12.99%), and loan term in years (1-7). All values must be within valid ranges.

5. Frequently Asked Questions (FAQ)

Q1: What fees are included in RACQ personal loans?
A: RACQ may charge establishment fees (typically AUD 150-$250) and monthly service fees (AUD 5-$10), which aren't included in this calculator.

Q2: Can I make extra repayments?
A: RACQ usually allows extra repayments without penalty, which would reduce your total interest paid.

Q3: How does credit score affect my rate?
A: Better credit scores typically qualify for lower interest rates within the 5.99-12.99% range.

Q4: Is insurance required?
A: Consumer credit insurance is optional but may be offered with your loan.

Q5: How accurate is this calculator?
A: It provides estimates only. Actual loan terms may vary based on RACQ's final approval and any additional fees.