1. What is SSS-Linked Salary Loan EMI?

The EMI (Equated Monthly Installment) is the fixed payment amount a borrower makes to the lender each month for an SSS-linked salary loan. It includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Loan principal amount (pesos)
• \( r \) — 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 over its term with equal monthly payments.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, ensuring the loan payments fit within your monthly budget without strain.

4. Using the Calculator

Tips: Enter loan amount in pesos, annual interest rate in percentage, and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for SSS salary loans?
A: Interest rates vary but typically range from 6% to 12% annually for SSS-linked salary loans.

Q2: How does loan term affect EMI?
A: Longer terms reduce EMI but increase total interest paid. Shorter terms have higher EMIs but lower total interest.

Q3: Are there any processing fees?
A: Most SSS-linked loans have a small processing fee (usually 1-3% of loan amount) which isn't included in EMI calculation.

Q4: Can I prepay my loan?
A: Most SSS-linked loans allow prepayment, often with no penalty, which can reduce your total interest cost.

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 issues.