The three essentials
- Principal amount
- The sum you borrow before interest and fees.
- Annual interest rate
- The cost of borrowing. Check the calculation method and fees.
- Repayment period
- The repayment period. Review monthly instalments and the total cost together.
The principal is the amount borrowed. Interest is the cost charged for borrowing, and the tenure is the repayment period. Ask how interest is calculated, which fees apply and what the total repayment will be. A longer period can change both the instalment and the total cost. Compare like-for-like figures and read the actual agreement before deciding. An enquiry is the beginning of a discussion; it is not a commitment to accept a loan.
How your repayment adds up.
The amount borrowed
RM10,000 × 18% × 1 year
Principal amount + Estimated total interest
Monthly estimate = (principal + total interest) ÷ number of months
Illustration: RM10,000 over 12 months at 18% annual flat interest, excluding fees. RM983.33 is rounded; a final instalment adjustment may be needed. Confirm the actual schedule with MM COME.