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, EMI includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Loan principal amount (₱)
• \( r \) — 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. Understanding Motorcycle Loan Terms

Details: Motortrade loans typically have terms ranging from 12 to 36 months. Interest rates vary based on credit score, loan amount, and motorcycle model.

4. Using the Calculator

Tips: Enter the loan amount in Philippine Pesos (₱), annual interest rate (%), and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical interest rate for Motortrade loans?
A: Rates typically range from 6% to 24% annually depending on creditworthiness and loan terms.

Q2: Are there additional fees not included in EMI?
A: Some loans may have processing fees, insurance, or other charges not reflected in the EMI calculation.

Q3: Can I prepay my Motortrade loan?
A: Most lenders allow prepayment but may charge a prepayment penalty - check your loan agreement.

Q4: How does a longer loan term affect my payment?
A: Longer terms reduce monthly EMI but increase total interest paid over the life of the loan.

Q5: What happens if I miss an EMI payment?
A: Late payments typically incur penalties and may negatively affect your credit score.