Hi,

Would like to ask you guys opinion on both islamic loans below:

Bank A:
Lock in period: No
Interest rate: 4.55%
Tenure: 35 years
MRTA: RM900++ for 7 years ( the minimum one)
Margin of Financing: 80% (144k)
Processing fee: RM200, after GST charged it comes out to be RM212

Bank B:
Lock in period: 3 years
Interest rate: 4.70%
Tenure: 30 years
MRTA: RM700++ for 5 years ( the minimum one)
Margin of Financing: 100% (150k)
Processing fee: No

Which one is better?

This post has been edited by goolie: Jun 11 2015, 10:02 PM

any bank can do fortnighty loan repayment? heard that it can reduce our interest payment. i that true?

Thanks for your good idea! do you think start paying installment is better than juz paying interest for under construction project? heard that the latter wont reduce principal amount, is that true?

@Fat3Twister: In normal circumstance, can the savings from 20% discount on stamp duty fully offset the legal fees for Asset Purchase & Sale agreement?

For the time being, i still feel that islamic loan is more attractive due to stamp duty discount, no early settlement fees although MRTA is slightly higher than conventional. Correct me if im wrong.