1. What is the Union Bank Personal Loan Calculator?

This calculator helps you estimate your monthly payments for a Union Bank Philippines personal loan. It uses the standard loan payment formula to calculate your monthly obligation based on the loan amount, interest rate, and term.

2. How Does the Calculator Work?

The calculator uses the loan payment formula:

Where:

• \( P \) — Principal loan amount (PHP)
• \( r \) — Monthly interest rate (annual rate divided by 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 over the loan term, calculating a fixed monthly payment that fully amortizes the loan.

3. Importance of Loan Payment Calculation

Details: Understanding your monthly payment helps with budgeting and ensures the loan is affordable. It also shows the total interest cost, helping you compare loan offers.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What interest rates does Union Bank offer?
A: Rates vary based on creditworthiness, loan amount, and term. Check Union Bank's website or visit a branch for current rates.

Q2: Are there other fees besides interest?
A: There may be processing fees, insurance, or other charges. This calculator only estimates principal and interest payments.

Q3: Can I pay off my loan early?
A: Union Bank may allow early repayment, possibly with prepayment penalties. Check the loan terms.

Q4: How accurate is this calculator?
A: It provides a close estimate, but actual payments may differ slightly due to rounding or specific bank policies.

Q5: What if I miss a payment?
A: Late payments typically incur penalties and may affect your credit score. Always budget carefully.