MBSB Personal Loan

Malaysia Building Society Personal Financing

Current information on Personal Financing-I is basing on the Islamic Banking concept, MSBS provides Islamic personal financing solutions through our host of attractive packages that best suit customer’s needs.MBSB provides financing based on Variable Rate and Fixed Rate to suit client’s needs.

MBSB also provides many repayment options for customers to ease their loan repayment by linking with monthly instalment via Biro Angkasa (Biro) or Attorney General (AG) or Employer Salary Deduction or Over-the-counter. Each financing approved will be within the terms and conditions agreed by MBSB and customer.

Why choose MBSB?

  • Competitive profit rates
  • Up to 4 hours disbursement
  • Payment period up to 10 years
  • No guarantor required
  • No hidden charges
  • Available in Fixed Rate and Variable Rate packages
  • Open to Government and Non-Government employees

How to apply for MSBS financing?

  • Photocopy of MyKad
  • Latest 3 month’s salary slip
  • Confirmation Letter from Employer
  • Bank Account Statement
  • Any other latest supporting documents if required

Financing packages by MBSB differs based Government /Selected Companies and Private Sector Companies.

Government and selected companies that have tie-up with MBSB

  • Financing amount up to RM400,000
  • Profit rate as low as 3.15%
  • Takaful Coverage
  • Open to all Malaysian citizen aged 19 years old and not exceeding 60 years upon expiry of facility or opted retirement age, whichever comes first
  • Monthly Installment via Biro or AG or Employer Salary Deduction

Private Sector Companies

Open for employees of Public Listed Companies, GLC, State GLC, Multi-National Corporation, Education Sector Companies and its subsidiaries.

Malaysian citizen aged of 21 years and not exceeding 60 years upon expiry of facility or opted retirement age, whichever comes first Executive level and above with minimum income of RM3,500.

  • Financing amount up to RM300,000
  • Profit rate as low as 4.88% fixed rate equivalent depending on tenure
  • Takaful Coverage
  • Monthly Installment via payment over-the-counter

Just a short background of MBSB

Malaysia Building Society Bhd MBSB is a company incorporated under the companies ACT 1965 and is a scheduled institution as defined under the Banking and Financial Institution Act 1989 (BAFIA).

MBSB is aggressively scouting for talents to beef up its corporate business as part of its growth strategy, a move analysts views as a step closer to becoming a full-fledged bank.

Most development projects we will come across MBSB as one of the commercial property financing providers. MBSB provides other services other than home loans such as Home financing, Personal Loan, Auto Financing and Banc assurance.

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.

BSN Personal Loan

MYBSN loan package

BSN loan package are prepared for customers based on their preference. BSN offers a variety of financing options for customer to choose from in order to get the funds for customers. BSN personal loans are affordable and flexible. Standard BSN loan package “Executive-1” which is exclusive personal loan package catered especially for executives.

Customers interested to apply for the BSN loan packagemust be:

  • A Malaysian citizen
  • Aged 21 to 55 / 60* years old at the end of the loan tenure
  • Open to permanent & contract officers and staff that have minimum three (3) years of working experience
  • Offered only to Employees of Premier Developer Panel, Private Hospital, TelecommunicationCompany,Licensed Financial Institution, Multinational Company, PETRONAS Group ofCompanies, Selected Private University & College, Statutory Body, Government Link Company,Selected Public Listed Company in Main Market Bursa Malaysia (Financial, Plantation,Property,Technology,Trading / Service, Industrial Product, Consumer Sectors only) and Professionals(Doctor, Architect, Lawyer, Accountant and other certified Professionals)
  • Minimum gross income of RM3,000 per month (permanent staff) & RM10,000 per month (contract staff)
  • BSN GIRO / GIRO-i Account holders

Please prepare the relevant documents required in applying for BSN loanpackage

  • Copy of latest three (3) months Salary Slips
  • Copy of your NRIC (both sides)
  • Latest EPF Statement
  • Confirmation Letter by Employer stating the below:
  • Name and NRIC
  • Designation and Employment Status
  • Monthly salary
  • Date of Employment

Or;

  • Latest EA / EC Statement and latest e-filing form or any verified documents by the Inland Revenue Board (LHDN

BSN Loan approval is based on the subject to the current terms & conditions and employer confirmation.

 

 

Repayment options customer will enjoy with BSN loanspackage

Financing Duration is normally between 2 and 10 years depending on the loan amount and agreed terms.

Mode of payment is via:

1. Standing Instruction from other Financial Institutions where the customer salary account is credited.

2. BSN Standing Instruction

3. ATM/CDM

 

Just to share a short background of BSN

Bank SimpananNasional was incorporated on 1 December 1974 under the Ministry of Finance at that time, TengkuRazaleighHamzah.

BSN’s mission is to encourage savings, investments and smart financial management among Malaysians to increase their quality of life.

BSN has more than 5,100 employees, 382 branches and 621 automatic teller machine (ATM) nationwide. BSN has more than 7 million customers spread throughout the length and breadth of the country and with savings of more than RM 8 billion.

 

 

Personal Loan for ASB trust funds

asnb_logo

Recently I overheard a person who decides to borrow a personal loan from bank to invest on ASB ( Amanah Saham Bumiputera) trust fund.  According to this person, the lowest interest rates for Bank Islam Personal Loan is around 3.25% p.a. while ASB investment provides a hefty 6% return. This person claims that he’s making 6% – 3.25% = 2.75% by leveraging on bank’s money. Is this the case ?

To really understand how personal loan interest works, we must dig deep into how personal loans interest is calculated in Malaysia. Typically, a bank or financial institutions imposes a Flat Interest Rates structure when calculating interest for car loans and personal loans.  What Flat Rate is exactly ? This basically means that initial sum of money borrowed will always be used to calculate the interest rate for the entire tenure of the loan. I’m not gonna explain much as there are plenty of resources on how a Flat vs Effective interest rates works such as here. Although the advertised interest rates seems much lower, the EIR(Effective Interest Rates) of this loan could be nearly as double as compare to reducing balance interest rates.

As a rule of thumb, the conversion from flat interest rates is nearly double effective interest rates. The figure sits around 1.8. So this persons borrows at 3.25% p.a x1.8 = (EIR) which sits around 5.85 % p.a. Of course there comes the extra charges such as RM50 Wakalah fees and Stamp Duty which sits around 0.55% of the personal loan.  Additionally you must purchase also additional products such as BancaTakaful and Will Writing from Bank Islam to enjoy the lowest interest rates. So how much does this person really earns from the leverage ?

The moral of the story is, always understand how Interest Rates works for certain type of loans before making decision based solely on the figure. Fortunately, most banks are required to display their EIR (Effective Interest Rates) besides from what you see in the brochures of the loan. Just dig deep into the product disclosure sheet where the EIR will be displayed.

Bank Rakyat Personal Loan

downloadBank Rakyat is a major bank in Malaysia that provides one of the most popular personal loans in Malaysia. This bank has been around since the 50s in Malaysia providing Islamic compliant financial products to Malaysians.

Today, Bank Rakyat’s personal loans is one of the most popular personal product in the market.

The few major personal financing products from Bank Rakyat are Personal Financing-i Aslah Rakan PintarPersonal Financing-i Aslah Public and Personal Financing-i Aslah Private.

Personal Financing-i Aslah Public

This Bank Rakyat Personal Loan product is meant for government servants in Malaysia. As repayment for Public sector personal loan is done via auto salary deduction. The risk of default is rather low for these type of loans. Therefore, financial institutions are able to give a lower and competitive interest rates for private sector loan.

Personal Financing-i Aslah Private

Bank Rakyat Personal Financing-i Aslah is meant for private sectors in Malaysia. The interest rates for this loan is competitive among the other private sector loans however it is higher than the loans catered for public sector.

Personal Loan in Malaysia

personal-loans-picPersonal Loan is one of the more popular financing products in Malaysia. The number of personal loans borrowers has been growing for years despite curbs from  “Bank Negara” the central Bank of Malaysia.

There are various types of personal loans in Malaysia. Majority of the personal loans have a flat interest rates with standard fixed repayment. There are some variable interest rates personal loans but the number is small. On a standard basis, personal loans in Malaysia are usually unsecured which requires no collateral and no guarantee person. Thus, banks are rather strict is personal loan approvals.

Repayment

Repayment for personal loans is done on fixed basis. The range can vary anywhere from 1 year to a maximum of 10 years repayment period. A standard minimum would be 1 year however Bank Negara has recently capped the maximum of personal loans repayment to 10 years.  Fixed repayment would be good for borrowers as they can plan out their budget with a known value of repayment.

Credit Card vs Personal Loans

Credit Card is undoubtedly the most popular form of loans available. As consumer swipes their card, they are unconsciously borrowing from financial institutions and will have to pay back the debt sooner or later.  How does this differs from Personal loans ? There are various type of credit card users. A person who uses a credit card for convenience purpose and is able to control their spending habit will not find any issue with credit cards. However, there are people who leverage credit cards as means to solve troubled financial situations. This is bad as credit card has one of the highest interest in the country.

Credit card interest is calculated on reducing balance basis, which in terms mean that you only pay interest for what you owe. As for Malaysians personal loans, interest is calculated on Flat rate basis which means that the initial sum borrowed will used for the entire tenure of the loan.

A Credit Card would be good if a borrower have the means to repayment debts without hitting the maximum interest rates which sits around 18% p.a.  If a person is not able to repay his or her credit card debts,  it is recommended for the borrower to convert his or her credit card debt into a personal loan where the Effective Interest Rates will lower than the credit card’s maximum interest rates.

The borrower will also be able the lengthen their repayment which in turn means a lower monthly repayment with longer tenure. This can help improve a borrower’s financial situation dramatically while financial prudence is still required to manage the future situation.

CCRIS & CTOS

As a standard , CCRIS and CTOS credit score will be used when assessing any personal loan applications.  It is utterly important for any borrowers to have a good credit rating on both credit score system. One standard basis, a persons credit score will be kept for 2 years. Data that are over 2 years will be rotated with newer records. Therefore, it will be better to have a clean record for 2 years before applying for personal loans. Any late payment for 2 consecutive months will raise a red alert.