Motor Loan Calculator Philippines (Non-Standard)

EMI Calculation Formula:

\[ EMI = \frac{P \times r \times (1 + r)^n}{(1 + r)^n - 1} \]

Monthly Payment (EMI):

Total Payment:

Total Interest:

Unit Converter ▲

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1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower makes to a lender at a specified date each calendar month. For motor loans in the Philippines, EMI payments typically include both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

\[ EMI = \frac{P \times r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:

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

Note: This calculator accounts for non-standard motor loans in the Philippines which may have different terms than typical bank loans.

3. Understanding Motor Loans in the Philippines

Details: Motor loans in the Philippines often have:

Higher interest rates than standard bank loans
Shorter terms (typically 12-60 months)
Variable interest rates depending on lender and borrower profile
Additional fees (processing, insurance, etc.) not included in this calculation

4. Using the Calculator

Tips:

Enter the total loan amount in PHP
Input the annual interest rate (common range is 5-20% for non-standard loans)
Select loan term in months (12-60 months typical)
Results show monthly payment, total repayment amount, and total interest

5. Frequently Asked Questions (FAQ)

Q1: What's a typical interest rate for non-standard motor loans?
A: Rates vary but often range from 8% to 25% annually depending on lender, loan term, and borrower creditworthiness.

Q2: Are there additional fees not included in this calculation?
A: Yes, most lenders charge processing fees (1-5% of loan amount), insurance, and possibly other charges.

Q3: Can I prepay my motor loan?
A: Most lenders allow prepayment but may charge a penalty fee (typically 1-5% of outstanding balance).

Q4: What happens if I miss an EMI payment?
A: Late payments incur penalties (usually 3-6% of overdue amount) and may affect your credit score.

Q5: How does this differ from bank motor loans?
A: Bank loans typically have lower rates (4-12%) but stricter requirements. Non-standard lenders offer more flexible approval but higher rates.