Personal Loan Calculator

Planning for a personal project or debt consolidation? Use our calculator to see your monthly commitment based on flat interest rates.

Loan Details

Rate Comparison

Crucial info

Unlike mortgage, personal loans use "Flat Rates" which makes them more expensive than they appear.

Advertised Rate

5.99% Flat

True Cost (EIR)

0.00% p.a.

Total Cost of Credit

Principal
Interest
Initial Loan
RM 30,000
Total Interest Payable
RM 0
Total RepaymentRM 0

Monthly Repayment

RM 0

Monthly Repayment

RM 0

flat interest rate formula

Total InterestRM 0
Total RepaymentRM 0
Effective Rate (EIR)0.00%

Advertised rate of 5.99% is actually 0.00% in real cost.

How Personal Loans Work in Malaysia

When you take a personal loan in Malaysia, the interest is usually calculated as a Flat Rate. This means the interest is calculated based on your original loan amount for the entire duration of the loan.

While flat rates look lower (e.g., 4% flat), they are actually more expensive than reducing balance rates (e.g., 4% p.a. on reducing balance) because you are still paying interest on the full amount even as you pay down the principal.

Pro Tip: Always check the Effective Interest Rate (EIR) provided by the bank. The EIR reflects the true cost of the loan and is usually much higher than the advertised flat rate.