Services
Mortgage Loan (House / Factory / Land)
A type of secured loan specifically used to purchase real estate, where the property you are buying serves as collateral. This means that if you fail to repay the loan, the bank can take back your property and auction it.
Loan types in Malaysia
When selecting a mortgage or housing loan package, it’s important to look beyond just interest rates and fees. You also need to think about which type of loan is right for you. There are generally four types of loans: flexi loans, semi-flexi loans, non-flexi loans, and fixed-rate loans.
Flexi Loan:
- Operates through a mortgage current account.
- Withdraw and deposit money without extra fees.
Monthly installments deducted automatically. - Extra funds can be added anytime to save on interest.
- Withdraw funds anytime for free (via online transfer).
- Requires a monthly maintenance fee and a one-time setup fee.
- Ideal for self-employed individuals or business owners with extra cash flow.
Semi-Flexi Loan:
- Allows advance payments without a fixed schedule.
- No current account—only a loan account to save on interest.
- Extra money can be added to save interest.
- Withdrawals incur a one-time fee of RM25 or RM50 at the bank.
- Need to give the bank 2 to 5 days’ notice before withdrawal.
- Must inform the bank for capital prepayments.
- Suitable for people with a fixed salary.
Non-Flexi Loan / Basic Term Loan:
- Has a fixed repayment schedule with the same monthly payment.
- Borrowers must visit a bank counter to arrange extra payments.
- No withdrawals allowed on extra funds paid beyond the schedule.
Feel free to consult our team to assess your credibility and eligibility today. You may WhatsApp our customer service at 013-7772332.
SME Loan
An SME Loan, or Small and Medium Enterprise Loan, is a type of financing specifically designed for small and medium-sized businesses. These loans provide businesses with the capital they need to grow, cover operational costs, or invest in new equipment or technology.
What is an SME?
Small and Medium-sized Enterprises (SMEs) are businesses that operate below specific thresholds in terms of revenue, assets, or employee count. These enterprises are considered vital to Malaysia’s emerging and developing economies. They create numerous job opportunities and foster innovation through their entrepreneurial spirit.
How can an SME Loan boost your net working capital?
Enhance your net working capital by securing an SME loan from Malaysia’s leading commercial banks and development financial institutions. Tailor your business financing plan and improve your credit rating with timely repayments on low-interest loans.
What are the eligibility criteria for an SME Loan?
To qualify as an SME, your business must meet two primary criteria: your annual sales turnover and the number of full-time employees. These criteria can vary by sector.
Personal Loan
A personal loan is a type of financing that individuals can use for various personal expenses without needing to provide collateral. Personal loans are usually considered as unsecured loans, meaning they are not backed by any assets such as a house or car.
What loan amount can I apply for?
The amount you can borrow varies significantly, typically ranging from a few hundred to tens of thousands of ringgit, depending on the bank and your financial profile.
What interest rate will I receive?
Interest rates vary based on the borrower’s profile.
Refinance
Refinancing is the process of replacing an existing loan with a new one, typically to achieve better terms or lower interest rates. Refinancing your housing loan means paying off your current loan and replacing it with a new one that has different terms and conditions. Essentially, you are borrowing money again from the same bank or a different one to settle the debt on your existing home loan. In Malaysia, there are various bank refinance packages available, and we will guide you in selecting the best options to meet your needs.
What is the purpose of refinancing?
People often refinance to achieve one or more of the following goals:
- Reduce Monthly Payments: Lowering your monthly financial burden.
- Lower Interest Rates: Taking advantage of decreased interest rates for savings.
Change Loan Terms: Adjusting the duration or structure of the loan to better fit financial goals. - Cash-Out Refinancing: Accessing equity in your home for other financial needs.
What are the benefits of refinancing your house?
1. Leveraging Property Capital Appreciation
Homeowners can benefit from the increased value of their property over time. Here’s how it works:
- Capital Appreciation: After a few years, the property may have appreciated in value.
- Cashing Out: The cash you can access is the difference between what you owe on your mortgage and your property’s current market value.
- Example:
• Outstanding loan: RM400,000
• Current property value: RM500,000
• Potential remortgage (RM500,000 x 90%): RM450,000 - Process:
• Use RM400,000 to pay off the existing loan.
• Keep the remaining RM50,000. - Utilization: The RM50,000 can be used for various purposes, such as funding your child’s education, investing, paying off other debts, or boosting your savings.
2. Shortening Your Home Loan Tenure
Why consider it? If you’re in a stronger financial position, reducing the length of your home loan can lead to substantial savings over time.
3. Taking Advantage of Lower Interest Rates to Reduce Monthly Repayments
Recent Developments
On May 5, 2020, Bank Negara Malaysia announced a reduction in the OPR due to the Covid-19 pandemic, bringing it down to 2%, the lowest since 2009. In response, major banks such as Maybank, Public Bank, and CIMB have lowered their effective lending rates by 50 basis points.
Interest Rate Dynamics
- The interest rate for home loans is primarily determined by each bank’s Base Rate (BR), which is influenced by the Overnight Policy Rate (OPR) set by the central bank.
- A lower OPR reduces the cost of borrowing.
- When the OPR decreases, banks usually lower their Base Lending Rate (BLR) and BR.
- This makes it cheaper for property buyers to secure new home loans, resulting in lower monthly repayments.
Now is an opportune time for potential borrowers to consider refinancing or taking out new loans to benefit from these lower rates.
Example of savings from lower interest rates.
Current Scenario:
- Previous Interest Rate: BLR = 5%
- New Interest Rate: SBR @ 3% + 0.9% = 3.9%
Savings Calculation:
- Interest Savings: 5% – 3.9% = 1.1%
By refinancing at the new rate, you could save 1.1% on your interest payments, leading to lower monthly repayments.
Feel free to consult our team to assess your credibility and eligibility today. You may WhatsApp our customer service at 013-7772332.
Car Loan (New / Recon)
A car loan is a type of financing specifically used to purchase a vehicle.
How do interest rates vary for different types of cars?
Interest Rates for Different Types of Cars
- New Cars: Usually have the lowest interest rates.
- Recon Cars: Interest rates are moderate.
- Used Cars: Generally have higher interest rates.
Interest rates for new cars are often lower compared to those for used car loans, particularly for borrowers with good credit. These rates can be either fixed or variable.
Feel free to consult our team to assess your credibility and eligibility today. You may WhatsApp our customer service at 013-7772332.
Debt Consolidation
A debt consolidation loan lets you combine several debts into one loan, making it easier to manage your finances.
What are the example of debt consolidation?
Example:
If you owe:
- RM8,500 on one credit card
- RM6,500 on another credit card
- RM10,000 from a personal loan
You can consolidate these into one loan of RM25,000, streamlining your payments.
What are the benefits of debt consolidation?
- Simplified Payments: Manage all your debts in one payment instead of multiple.
- Lower Monthly Payments: By choosing a longer loan tenure, you can reduce your monthly payment to a level that fits your financial situation and comfort.
This option is particularly beneficial for those with multiple outstanding credit cards or personal loans.
Feel free to consult our team to assess your credibility and eligibility today. You may WhatsApp our customer service at 013-7772332.
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