1. What is EMI Calculation?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. For boat motor loans in the Philippines, this helps fishermen and boat owners plan their finances.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Loan principal amount (PHP)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Loan term in months

Explanation: The formula calculates the fixed monthly payment that includes both principal and interest components over the loan term.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in budgeting and ensures the loan payments are affordable. It's particularly important for fishermen in the Philippines who have seasonal income patterns.

4. Using the Calculator

Tips: Enter the loan amount in PHP, annual interest rate (typical rates in Philippines range from 6% to 24%), and loan term in months (usually 12-60 months for boat motors).

5. Frequently Asked Questions (FAQ)

Q1: What are typical interest rates for boat motor loans in PH?
A: Rates vary by lender but typically range from 6% to 24% annually depending on creditworthiness and collateral.

Q2: What loan terms are available?
A: Most lenders offer 1-5 year terms (12-60 months) for boat motor financing.

Q3: Are there additional charges?
A: Some lenders may charge processing fees (1-3% of loan amount), insurance, or other service charges.

Q4: Can I prepay my loan?
A: Most lenders allow prepayment but may charge a penalty (typically 1-5% of outstanding amount).

Q5: What documents are needed?
A: Typically requires proof of income, valid ID, boat registration, and sometimes a down payment (10-30%).