1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender each month until the loan is paid off. It includes both principal and interest components.

2. How EMI Calculation Works

The calculator uses the standard EMI formula:

Where:

• \( P \) — Loan principal amount (₱)
• \( r \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( n \) — Loan term in months

Explanation: The formula calculates the fixed monthly payment that will completely pay off the loan (principal + interest) over the specified term.

3. Motorcycle Financing in Philippines

Details: Motorcycle loans in the Philippines typically range from 12 to 36 months, with interest rates varying from 5% to 20% annually depending on the lender, credit score, and down payment.

4. Using the Calculator

Tips:

• Enter the total loan amount in Philippine Pesos (₱)
• Input the annual interest rate (without the % sign)
• Specify the loan term in months (12, 24, 36, etc.)
• All values must be positive numbers

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 lender and buyer's credit profile.

Q2: Are there other fees besides interest?
A: Yes, there may be processing fees, insurance, and registration fees that are typically paid upfront.

Q3: Can I prepay my motorcycle loan?
A: Most lenders allow prepayment but may charge a prepayment penalty, typically 1-5% of the outstanding balance.

Q4: What credit score is needed for approval?
A: Requirements vary, but generally a credit score above 650 increases approval chances. Some lenders offer loans without credit checks at higher rates.

Q5: How does the interest rate affect my payments?
A: A 1% increase in interest rate can increase your total payment by 5-10% over the loan term. Always compare rates from multiple lenders.