1. What is EMI?

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

2. How EMI Calculation Works

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 would pay off the loan with interest over the specified term.

3. Understanding Loan Terms

Details: Longer loan terms reduce EMI but increase total interest paid. Higher interest rates increase both EMI and total interest.

4. Using the Calculator

Tips: Enter the loan amount in PHP, annual interest rate (without % sign), and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is Motortrade's typical interest rate?
A: Motortrade interest rates typically range from 10% to 30% annually, depending on creditworthiness and loan terms.

Q2: Are there other fees besides interest?
A: Yes, there may be processing fees, insurance, and other charges that aren't included in this calculation.

Q3: How does down payment affect EMI?
A: Larger down payments reduce the principal amount, resulting in lower EMIs and total interest.

Q4: Can I prepay my Motortrade loan?
A: Prepayment policies vary, but many lenders allow prepayment with possible fees or charges.

Q5: What if I miss an EMI payment?
A: Late payments typically incur penalties and may affect your credit score. Contact your lender immediately if you anticipate payment difficulties.