Work out the monthly installment, total markup and yearly repayment schedule for car financing, a home loan or a personal loan.
Bank rates are usually KIBOR plus a spread. 15% is an example; use the rate in your bank's offer.
| Year | Principal paid | Markup paid | Balance left |
|---|
Installments use the standard reducing-balance formula: each month's markup is charged only on the amount still owed, so early payments are mostly markup and later ones mostly principal.
Banks also charge processing fees, insurance and, for cars, registration and tracker costs. Ask for the full cost sheet before signing. Islamic financing (ijarah or diminishing musharakah) is priced differently but usually lands close to these figures.