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 motorcycle loans in the Philippines, EMI payments are typically made monthly until the loan is paid off.

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 will completely pay off the loan (principal + interest) over the loan term.

3. Motorcycle Financing in the Philippines

Details: Motorcycle loans in the Philippines typically have terms ranging from 12 to 36 months, with interest rates varying from 5% to 20% annually depending on the lender, borrower's creditworthiness, and motorcycle model.

4. Using the Calculator

Tips:

• Enter the total loan amount in PHP
• Input the annual interest rate (not monthly rate)
• Specify the loan term in months (12 = 1 year, 24 = 2 years, etc.)
• Common motorcycle loan terms are 12, 18, 24, or 36 months

5. Frequently Asked Questions (FAQ)

Q1: What is a typical down payment for motorcycles in PH?
A: Down payments usually range from 10% to 30% of the motorcycle's price, depending on the financing scheme.

Q2: Are there hidden charges in motorcycle loans?
A: Some lenders charge processing fees (1-3% of loan amount), insurance, and registration fees. Always ask for a complete breakdown.

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

Q4: What credit score is needed for motorcycle loans?
A: Requirements vary, but generally a minimum credit score of 600 is preferred by most lenders.

Q5: How does this compare to in-house financing?
A: In-house dealer financing often has higher interest rates (15-25%) but may be easier to qualify for than bank loans.