Hi i recently received a text from Bank Rakyat personel offering overlap loan. Out of curiosity and since ive applied personal loan before this and having other loan commitment ive decided to call them.

So what I was offered, im not quite sure whether its good or not. Thus, here I am, asking experts here for some feedback.

Below are roughly my commitment:

Car: Rm970(6 years more)
Credit card: Am paying average rm800 a month(should be up to 15months or less if i decided to pay extra),
Ptptn Rm33k some more with monthly of rm300(not sure when will end).
personal loan that i unfortunately took during my younger years about rm770 a month with remaining of rm71k(with 9 years remaining)
House, rm1200/ a months

In total i am paying: rm970(car) + rm1200(house) + rm1800(other commitment) about 55 per cent from income.
For first option: The bank offer me rm160k for no reason with extra cash in hand rm40k, after they overlap all my commitment besides car loan.

If i take the overlap loan ive to pay rm1,800 a month for ten years + rm970 for car.

Or second option: Rm125k with rm5k extra cash in hand for Rm1,400 a month also for ten years.

If i take these two options: I have no more commitment on credit card which i have outstanding of about rm12k, ptptn, previous personal loan of rm71k.

Im a big spender i admit, my mistake that i did without thinking during my younger years. I am just 29 this year.

Without the overlap loan, i think i still can pay the commitment fine. But the offer for overlap loan kinda good too.

But i dont know, what will it fo to my credit record. Can i still apply for loan later on if I needed?

I need serious response

What is overlap loan? is it just another way of selling personal loan?

Anyway, instead of looking at loan commitment amount, actually you should be looking at interest rate, savings in early loan settlement, etc.

and also, looking at your history, doesn't seem like the best of idea to get a loan to cover another loan.

For the loan that bank rakyat offers you, based on my calculation, it is 3.44% flat rate, which means effectively it is at 6%+ p.a.. At this rate for a personal loan, i believe it is as low as it gets (not too sure, never needed to apply for personal loan before).

Now, your personal loan that is 770 per month, what is the interest charged, repayment period, etc...?

As for your credit card, what is the outstanding balance.

i'm not great at calculating these things, still learning, but the idea here being that
1) if your new loan offers lower interest rate compared to the interest of your personal loan and credit card loan, then might be OK to get it.
2) the consideration is how the new loan can create savings for both your cc balance and your current personal loan. if at the end of the day, you do save a ot of money, yes. so herein lies what terms and conditions of the previous personal loan? don't need to know about CC, cause that's 18% daily, known fact.
3) at 3.44% p.a flat rate, EIR 6%+ though, the rate is definitely higher than your ptptn loan, so no, don't use it to cover your ptptn loan.

But those amount only if i made full settlement. If i continue paying monthly. It should be more or less like below:

Rm37-39k(ptptn + 1 percent interest) + rm91k(personal with interest) + rm12k not including interest which i dunno whether itll increase every month due to interest.

For PL it shoud be close to 120 months still