1. What is Motortrade Motorcycle Loan?

Motortrade is a popular motorcycle financing company in the Philippines offering installment plans for new and used motorcycles. Their loans typically have terms ranging from 6 to 60 months with competitive interest rates.

2. How Does the Calculator Work?

The calculator uses the standard loan amortization formula:

Where:

• \( P \) — Loan principal amount (PHP)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Number of monthly payments

Explanation: This formula calculates the fixed monthly payment required to fully repay the loan (principal + interest) over the specified term.

3. Understanding Loan Terms

Details: Motorcycle loans in the Philippines typically have:

• Interest rates: 10-30% annually depending on credit profile
• Loan terms: 6-60 months (most common is 36 months)
• Minimum down payment: Usually 20-30% of bike price

4. Using the Calculator

Tips:

• Enter the loan amount in PHP (after down payment)
• Use the interest rate quoted by your financing company
• Shorter terms mean higher monthly payments but less total interest

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for Motortrade loans?
A: Rates vary but typically range from 10-25% annually depending on credit score and loan term.

Q2: Are there other fees besides interest?
A: Yes, there may be processing fees, insurance, and registration fees not included in this calculation.

Q3: Can I pay off my loan early?
A: Most lenders allow early repayment but may charge a prepayment penalty (usually 1-5% of remaining balance).

Q4: What credit score is needed?
A: Motortrade often caters to borrowers with limited credit history, but better scores get lower rates.

Q5: How accurate is this calculator?
A: It provides a good estimate, but actual payments may vary slightly due to rounding or additional fees.