How do I calculate the monthly repayment amount of my Instalment Loan?
The interest payable component forms part of your Equal Monthly Instalment (EMI) amount, which is reflected in-app in your repayment schedule. For example,
For illustration purpose,
Effective Interest Rate (EIR): 10% p.a. i.e. 0.0274% per day
i.e. Flat Rate = 5.50% p.a.
Tenure: 12 months
Loan drawn: RM70,000.00
Instalment date: 31st of every month
Loan drawdown date: 1st January 2025
Total interest payable = Loan * Flat Rate * tenure
= RM70,000.00 * 5.50% / 365 * (365 * 1 years)
= RM3,850.00
EMI amount = (interest payable + principal) / tenure
= (RM3850.00 + RM70,000.00) / 12 months
= RM6,154.17
Your monthly repayment amount over the 1 year tenure will therefore be RM6,154.17.
*The Flat Rate represents the borrowing cost, expressed as a yearly rate, relative to the initial loan drawdown amount.
*The Effective Interest Rate (EIR) is the rate that reflects the true cost of borrowing and is computed on a reducing balance basis, accrued daily.