Life's Challenges » financial

OD, one of the best facilities from our Local Banks

Fahmie — Sat, 06 Mar 2010 08:47:02 +0000

Overdraft or some people called it OD, is one of the powerful facilities provided by our Local Bank. It’s a one of loan product that gives very low risk to the bank, hence bank gives you a quite low loan interest among others. To apply OD, you need to mortgage your valuable asset that have high liquidity such as Unit Trust, ASB or Fix Deposit. The capacity of your OD normally 90 to 95 percent of your mortgage asset value.

Nowadays, bank offer between BLR-1 until BLR-2 of interest per annum. Roughly is about 0.3 per month bank will charge on total of balance credit that we have made. Cheap isn’t it compare to credit card interest. Get one it now!

The best Personal Loan for person like me

Fahmie — Sun, 18 Oct 2009 03:36:40 +0000

I want to share a little experience of applying personal loan from Bank in Malaysia.

This is my first time experience applying personal loan in my life. For people working with Non-Goverment Organization like me, the best bank to apply is Al-Rajhi Bank. This bank only require you to provide 3 months pay cheques and also photocopy of your I/C, plus no guarantor require as well as your name is not blacklisted by National bank (Central Credit Reference Information System – CCRIS) or CTOS (Credit Tip Off Services). The total amount of loan that you entitled is 5 times of your net salary. Let say your net salary of the month is RM4k, means you entitle to get max up to RM20k. However, there is some catch that you will not get 100% amount of the money because bank will charge you small amount of money for processing fees includes insurance (in case of you get killed or dead before the debt settle) of the loan, stamp duty (0.5% of the total financing amount) and also delivery charges (RM250.00). All these fees will be deducted from the total loan.

You can submit your application via email, fax or by hand and will get the result of approval within 24 hours via SMS and phone call. Bank officer will call you to make an appointment for settle the rest of the process such as opening bank account, ATM card, cheque book and etc. After opened the bank account, your money will be credit in within 2 working days. Then you can happily start to use the money given ever after.

MRTA vs Personal Insurance

Fahmie — Tue, 09 Sep 2008 07:54:05 +0000

Today, I received a letter from home loans bank asked me to pay MRTA of my new house in certain amount. Before this, I’ve explained to the bank officer that I already have personal insurance that will cover the house value if something bad happen on me such as death or disability. However, the bank officer refused and mentioned it is responsibility for the bank to ensure their customer follows procedure that National Bank provided. If I’m not mistaken, this MRTA something good to have for the home loan borrower and it’s not compulsory.

Below is definition of MRTA (The Mortgage Life Assurance):

“This type of policy provides for full settlement of the outstanding balance of the housing loan with the financial institution, in the event of total permanent disability or death of the borrower. Premiums can usually be included in the loan amount, and the repayment period of the premium is usually spread over the loan tenure. The premium is only incurred once. There are no monthly or yearly premiums to be paid. In the event of early termination of housing loan, you will generally have the option to request for a refund of the premium for the balance of the unexpired period or to continue the insurance coverage.”

For me as long we have another financial source that can replace MRTA and cover with the same amount, should be OK.

Pros and Cons of MRTA vs Personal Insurance:

MRTA’s Pros: Pay once and the coverage will be continue until you’ve completed to pay the loan.
MRTA’s Cons: The amount that you pay will never return if nothing bad happen on you.

Personal Insurance’s Pros:
1. It’s a saving insurance which your money will be returned to you if nothing bad happen on you.
2. It can be move to any property if you have new one.
Personal Insurance’s Cons:
1. Your commitment is to pay premium on monthly/yearly basis until age reach 60 years old (depends to the policy).

Conclusion:
It’s is up you which one do you prefer to take. If you’re a property investor, Personal Insurance is the best for you. Otherwise, MRTA is your other option.