1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. For motorcycle loans in the Philippines, EMI 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)
• \( n \) — Loan term in months

Example: For a ₱50,000 loan at 10% annual interest for 36 months:

• Monthly interest = 10% ÷ 12 = 0.833% or 0.00833
• EMI = (50000 × 0.00833 × (1+0.00833)^36) ÷ ((1+0.00833)^36 - 1) = ₱1,613.37

3. Motorcycle Loans in Philippines

Details: Motorcycle loans in the Philippines typically range from 12 to 60 months, with interest rates varying from 5% to 20% depending on the lender, borrower's creditworthiness, and motorcycle model.

4. Using the Calculator

Tips:

• Enter loan amount in Philippine Pesos (₱)
• Input the annual interest rate (not monthly)
• Loan term should be in months (12 = 1 year, 36 = 3 years)
• Results show monthly payment, total repayment amount, and total interest

5. Frequently Asked Questions (FAQ)

Q1: What is typical down payment for motorcycle loans in PH?
A: Usually 10-30% of the motorcycle's price, depending on the lender and borrower profile.

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

Q3: Can I prepay my motorcycle loan?
A: Most lenders allow prepayment but may charge 1-5% of outstanding amount as penalty.

Q4: What documents are needed for motorcycle loan?
A: Typically requires valid ID, proof of income, proof of residence, and sometimes down payment.

Q5: Which banks offer motorcycle loans in Philippines?
A: Major providers include BDO, Metrobank, PSBank, RCBC, and motorcycle dealership financing.