Life often presents us with moments when financial support can make all the difference in reaching our goals. At Loan Calculator Philippines, we understand your unique borrowing needs, and we’re here to provide the perfect loan solution for you.
Personal Loan Calculator
Personal Loan Summary
Loan Amount: PHP 0.0
Monthly Payment: PHP 0.0
Total Amount: PHP 0.0
Note: Please be aware that the actual amounts may differ depending on the current rates at the time of your application. A documentary stamp tax of P1.50 per P200 of your loan amount may be applicable as well.
Calculating a personal loan in the Philippines involves several factors: the loan amount, interest rate, and loan term. Here's a basic guide on how to use a personal loan calculator:
- Identify your loan amount: This is the total amount you plan to borrow.
- Decide on your loan term: This is the duration over which you will repay the loan.
- Determine the interest rate: Each bank or lender has different interest rates. Check their websites or contact them directly to get this information.
- Click on the "Calculate" Button.
Use the formula for computing loan amortization: Monthly Amortization = [P x (I / 12)] / [1 – (1 + i / 12) ^ -n], where P is the principal loan amount, I is the annual interest rate, and n is the number of monthly installments.
Personal Loan Interest
Interest on personal loans is the cost you pay for borrowing money, calculated as a percentage of the amount you borrowed or the principal. As per the search results obtained from various sources like Bankrate, Nerdwallet, and Forbes, personal loan interest rates currently range from about 6 percent to 36 percent.
The rate you receive depends on your credit score, income level, employment status, and the lender's terms and conditions. It's important to note that the lower your interest rate, the less you'll pay over the life of the loan. Therefore, it's essential to compare rates from different lenders before deciding on a personal loan.
EMI for Personal Loan
Equated Monthly Installment (EMI) is the fixed payment a borrower pays to the lender on a specified monthly date.
It includes both the principal amount and the interest on the loan.
The formula used to calculate EMI is EMI = [P x r x (1+r)^n]/[(1+r)^n-1]
Where "P" represents the loan amount, "r" is the monthly interest rate (annual rate/12), and "n" is the number of installments.
Personal Loan Payments
Personal loan payments are the regular payments you make to repay your loan. These payments are typically made monthly and include principal and interest components. The amount of each payment is determined by the size of the loan, the interest rate, and the loan term.
Making timely payments can help improve your credit score, while late or missed payments can lead to penalties and negatively affect your credit rating. Some lenders may also offer early repayment, which could come with fees. It's crucial to understand all these aspects and ensure you can afford the monthly payments before taking out a personal loan.
Calculate Personal Loan Philippines Formula
In the context of the Philippines, the computation of personal loans typically employs the diminishing balance method. This implies that with each installment, you repay a segment of the main loan amount and the interest on the outstanding balance. The equation for determining the monthly installment for a personal loan is as follows:
Monthly Installment = [P x r x (1 + r)^n] / [(1 + r)^n - 1]
Here's what each symbol represents:
- "P" is the principal loan amount, the original sum you borrowed.
- "r" is the monthly interest rate, derived by dividing the annual interest rate by 12 and converting it to a decimal. For instance, if the yearly interest rate is 10%, the monthly interest rate becomes 10% / 12, or roughly 0.0083.
- "n" indicates the total count of monthly installments or the loan tenure.
To illustrate, suppose you wish to compute the monthly installment for a personal loan of 100,000 PHP at an annual interest rate of 12% for 24 months (2 years):
P = 100,000 PHP Annual Interest Rate = 12% (or 0.12 in decimal form) Monthly Interest Rate (r) = 0.12 / 12 = 0.01 Tenure (n) = 24 months
Input these values into the formula:
Monthly Installment = [100,000 x 0.01 x (1 + 0.01)^24] / [(1 + 0.01)^24 - 1]
You can use a calculator or spreadsheet software to carry out this calculation. The outcome will give you the monthly installment sum you must pay for your loan.
It's important to note that the formula above presumes a fixed interest rate throughout the entire loan tenure. However, in reality, some personal loans in the Philippines may have fluctuating interest rates or additional charges. Therefore, it's essential to review the terms and conditions the lender provides.
20 Alternatives Banks Philippines Personal Loan Calculators
Navigating the world of personal loans in the Philippines can be complex, but thankfully, many alternative banks offer handy loan calculators to simplify the process. Here are 20 alternative banks in the Philippines that offer personal loan calculators to help you make an informed borrowing decision.
- BPI Personal Loan Calculator: is a handy tool that helps you estimate your monthly repayments based on your preferred loan amount and tenure.
- BDO Personal Loan Calculator: you can easily compute your potential monthly installments and understand the cost of borrowing.
- Metrobank Personal Loan Calculator: provides a user-friendly interface to calculate your expected monthly payments and total loan cost.
- CIMB Personal Loan Calculator: lets you quickly determine your monthly repayments, making your loan journey more straightforward.
- Citi Personal Loan Calculator: offers an easy way to estimate your loan repayments based on your chosen loan amount and repayment period.
- Security Bank's Personal Loan Calculator: can help you plan your finances by providing an estimated monthly repayment amount for your loan.
- EastWest Personal Loan Calculator: This is designed to give potential borrowers a clear picture of their monthly installments and overall loan cost.
- RCBC Personal Loan Calculator: is a reliable tool for determining your monthly payments and understanding how much you can afford to borrow.
- Union Bank Personal Loan Calculator: offers a convenient way to calculate your potential monthly installments and total loan cost.
- PNB Personal Loan Calculator: can help you plan your loan repayments and manage your finances effectively.
- PSBank Personal Loan Calculator: enables you to estimate your monthly payments and total loan cost based on your preferred loan amount and tenure.
- HSBC Personal Loan Calculator: is an effective tool that estimates monthly installments and overall loan costs.
- Landbank Personal Loan Calculator: provides a simple way to calculate your potential monthly repayments and total loan cost.
- Maybank Personal Loan Calculator: is designed to help you understand your monthly repayments and the overall cost of your loan.
- China Bank Personal Loan Calculator: lets you estimate your monthly installments and total loan cost, helping you plan your finances effectively.
- PAG IBIG Personal Loan Calculator: is a useful tool for Pag-Ibig Fund members to estimate their loan repayments and total loan costs.
- CIMB Bank's Personal Loan Calculator: allows potential borrowers to calculate their monthly repayments and total loan costs.
- Robinsons Bank Personal Loan Calculator: is a user-friendly tool that helps you understand your monthly installments and overall loan cost.
- Standard Chartered Personal Loan Calculator: offers a straightforward way to calculate your potential monthly payments and the total cost of your loan.
- Kiwibank Personal Loan Calculator: is a helpful tool for those looking to understand their potential monthly repayments and overall loan cost in New Zealand's financial context.
Can Foreigners Borrow Money in the Philippines?
As an international applicant, you must supply additional documents for your loan application, such as your Alien Certificate of Registration (ACR) and visa. Apart from these, the prerequisites are quite simple and parallel the procedure domestic applicants follow.
What is the Personal Loan Limit?
The borrowing limit can range from a minimum of ₱20,000 to a maximum of ₱5 million.
Final Words
A Personal Loan Calculator is an invaluable tool for anyone considering a personal loan. It simplifies understanding your potential monthly repayments and overall loan cost, enabling you to plan your finances effectively.
Providing clear, reliable estimates helps make the loan process more transparent and manageable. Whether you're a local or an international applicant, having access to such a tool can greatly assist in making informed financial decisions.
