Hi all,

Am looking to take a 3 year personal loan to purchase a motorcycle. I have access to government preferential rates which is cheaper than taking a motorcycle loan but their minimum loan amount (MBSB) is much higher than what I need (2x more). Hence I might forego the government rates.

I'd like to consider any reducing balance loans instead as it may be cheaper. May I ask if there are any with reducing balance in Malaysia? Am I right to make this assumption?

Please advice
Thanks

This post has been edited by minde: Oct 10 2018, 11:31 AM

Yes.
Housing loan top up(you need existing property loan with a bank, top up loan based on current value - 90% of property)
Hong leong bank credit card balance transfer.
Gold pawn loans.

If you have difficulty, go for bank Rakyat personal loan, only Bank Rakyat and agrobank do not charge RM 30/month fee for BIRO ANGKASA deduction.

AMBANK quick cash offers 3.88%p.a. Flat rate interest (NOT REDUCING BALANCE) w/ terms available up to 36months for quick cash.

This post has been edited by powerlinkers: Oct 10 2018, 11:39 AM

Thanks.

Is the Hong Leong credit card BT program on reducing balance ? how about bank rakyat personal loan?

I believe all credit cards BT programmes are based on fixed interest, correct me if I'm wrong.
There're 0% credit cards BT like Public Bank 6 months or Maybank 12 months (promo running out fast) but that may depend on your available credit limit

Only Hong leong bank offers on reducing balance:4.99% p.a

Bank Rakyat personal loan is at flat rate 4% would be approximately 7.2% p.a. on reducing balance.
10 years loan available under bank Rakyat

hong leong bank's credit card offer indeed seems appealing. Anyway to withdraw cash from my other credit cards? purchasing item from private seller with no access to credit card POS.

Which bank credit card do you have have at the moment?

mbb,pbb and citi

First option
1.Apply bigpay
2.BALANCE transfer MBB to PBB(Promotion will end soon). Apply today itself. 0% for 12 months.
3.Top up big pay with PBB credit card once you get your bigpay card: top up the card with the money from balance transfer(money in PBB).
4. Find a Maybank ATM which dispenses RM 100 notes, withdraw rm3k each withdrawal(money from bigpay-only charge rm6 per withdrawal ) do not abuse this service: they will cancel your card maximum is RM 10k/ month, try not go overboard.
5. If you think that you would difficulty paying the amount over 12 months from Maybank, you can apply Hong leong bank credit card and balance transfer to Maybank credit card.


Second option
1.Apply AMBANK ISLAMIC (Remember :islamic) credit card.
2.Apply balance transfer from Maybank or Hong leong bank or public bank to AMBANK Islamic credit card.
3.Go to counter(Not ATM) and cash advance the amount that you have balance transferred.
AMBANK Islamic only charges rm50/cash advance. No other fees except annual interest rate of 18%, if you have already have extra money in the credit card (from balance transfer) : you will be imposed only RM 50/each cash advance

Third option
1.hong leong essential card withdrawal fee is 2%, annual interest rate of 10.8%, you could balance transfer to this card and withdraw as well

This post has been edited by powerlinkers: Oct 10 2018, 06:00 PM

nice

This post has been edited by sayafauzi: Oct 10 2018, 10:30 PM

wow, im impressed!

Thanks so much!

hey would you recommend taking fixed rate or floating rate for personal loan?

If you are taking 36 months loan: go for floating

Whenever they say reducing term on credit card loans/personal loans are cheaper, try to reconfigure the rate to fixed rate.

But if you are saying HLB reducing rate at 4.99%, I doubt the promotion rate is right. Is almost like a housing loan rate

Do you know if they calculate the spread using rule 78? or normal ibra method. want to calculate the rebate for early settlement.

I do not know.

The basic rule : They take half interest(profit) , half capital each month for UNSECURED personal loans in Malaysia.

E.g. You have taken RM 10k loan from Bank Rakyat for 10 years, profit rate : flat rate of 4%, they might charge around rm 400 for insurance and stamp duty.

Monthly rate = RM10000 X 1.4/120 = rm 116.67

So in first month , they will take rm58.33 capital and rm 58.33 profit.

That means: if you refinance after 5 years: you will lose money because more interest would have been paid in earlier time period . Do not ever refinance these loans, it would be better to take overlap loans rather than refinancing.


Effective interest rate in first year could be very high 12.6%(RM58.33x12x 1.8 / 10000), but averages 7.2%(based on 4% flat rate) over 10 years.

If you wish to settle after 3 years: you would have paid RM 58.33 X 36= RM 2100, settlement would be around RM 7900.


IF you wish to avoid all these nonsense : Balance transfer from Hong Leong Bank Credit Card, 4.99% reducing balance interest rate.

Almost All UNSECURED Islamic personal loans in Malaysia operate in this term: they use different names to legalize taking interest(riba).

This post has been edited by powerlinkers: Oct 15 2018, 04:57 PM