in Personal Loan

Bank Islam Personal loan

Regardless of what your reasons may be for taking a personal loan, there are certain benefits which you can actually gain let it be if it is going to be used to solve a short term problem or even for a business purpose whereby it brings you a lot of returns based on your investments. However, choosing a personal loan can be quite challenging as you might not know exactly what you need and how to go about obtaining it.

Worry no more as Bank Islam is ever ready to help you out when you are in need of cash and this you won’t have to worry about paying your loan back in a hurry as they give you a time period of up to 10 years. If you are reading this and if you are smiling already, then the Bank Islam Personal Financing-I Package is just what you are probably looking for. This personal loan here however is more suited for all those who are government servants, employees of selected private, public listed and its subsidiaries.

What Can You Get?

Just like everyone else around, the first you would ask yourself and the bank if how much money can you borrow and in most cases, the more they are willing to borrow, the happier the clients become. You will be more than happy to know that Bank Islam provides two options when it comes to their personal loan packages and that is you are able to borrow up to five times your fixed monthly gross salary or RM 200,000 with a maximum loan tenure of 10 years.

How Do You Start?

To apply for a loan at Bank Islam, you must be a Malaysian citizen. You should also be someone who is at least 18 years of minimum age in order to qualify. Bank Islam will also calculate all their applicants retirement age to see if they would exceed the loan tenure period by then. When applying for this loan, be sure that you are someone who already has a job. It doesn’t matter if you are self-employed or a full-time employee of a government sector, a selected public listed company or even any other prominent private limited companies which have been categorized under the package of companies that fall under Bank Islam’s list. Takaful protection is something which is compulsory under Bank Islam too.

There will be an amount of RM 50 which will be deducted upfront as your stamp duty fee which is compulsory for all based on the Stamp Act 1949 and this payment also includes an agency fee as well. You need not worry about paying anything else after this as there will not be any other hidden charges to be paid after this.

The benefit of taking a loan from Bank Islam is the fact that it gives you many options to choose how you would want your loan to be. You are given a choice to choose between a fixed interest rate and also a floating interest rate. The rates are as mentioned below.

Bank Islam’s Flat rate:

If you decide on a loan tenure of 1 year to 3 years with Bank Islam will-writing, Banca Takaful products subscription, or Bank Islam Card-I, then you will fixed interest rate of 3.25% per annum (0.27% per month) throughout the entire loan tenure.

If you decide on a loan tenure of 1 year to 3 years with Bank Islam on its own without the will-writing, Banca Takaful products subscription, or Bank Islam Card-I : Fixed interest rate of 3.50% per annum (0.29% per month) throughout the entire loan tenure.

If you decide on a loan tenure of 4 year to 10 years with Bank Islam on its own without the will-writing, Banca Takaful products subscription, or Bank Islam Card-I: Fixed interest rate of 4.99% per annum (0.42% per month) throughout the entire loan tenure.

Bank Islam’s Floating Rate:

The current Base Financing Rate (BFR) determined by Bank Negara Malaysia is 6.85% per annum as of 2nd January 2015.

If you decide for a loan tenure of 1 year to 3 years then you will have a floating interest rate of 6.85% (BFR) – 1.65% per annum (0.43% per month)

If you decide for a loan tenure of 4 year to 10 years then you will have a floating interest rate of 6.85% (BFR) – 0.35% per annum (0.54% per month)

Penalties

Unlike some of the banks which we have in Malaysia, Bank Islam does actually take late payments by their clients seriously. Al those who are considered to be late paymasters will be charged an additional 1% on outstanding loan amount. While this might seem like an insignificant amount, this will actually increase the debt that you have as a whole towards Bank Islam. You will not have any early settlement penalties so if you think you are able to pay off this loan way earlier than what was initially agreed upon, then you can go right ahead and do so.

Getting Started

You will need to bring a long certain documents when you are applying for your loan at Bank Islam. The list below tells you exactly what you will need and it is in fact divided into 2 categories which is for those who are salaried staff and those who are self-employed.

For Salaried Applicants:

IC Copy Both Front & Back
3 Months Of Your Current Salary Slips
Confirmation Letter By Your Current Employer
3 Months Of Your Current Salary Slips
Most Current B/BE/EA/EC Form With Tax Payment Receipts
3 Months Of Your Current Bank Statements
Most Current EPF Statement
For Self-Employed Applicants:

IC Copy Both Front & Back
Business Registration Certificate
6 Months Of Your Current Bank Statements
2 Years Of Your Current Financial Statements
Most Current B/BE/EA/EC Form With Tax Payment Receipts

Pay Off All Outstanding Debts

Here is a tip that will help you get your loan approved by Bank Islam. You must not have any bad credit ratings as this will affect your chances of getting the loan. Never look at this as a light matter as this can in fact ruin your chances of getting any loan approval from any bank for that matter. It is always better to be a good paymaster and having good financial habits are always a huge plus point.

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