you can believe whatever u want to believe. I have no vested interest in this.

If u have a hire purchase - you will understand what I mean. U think u really pay 2% on your new Honda?

check out the difference between a flat and effective rate. If your sales person doesn't know what it means - it implies 2 things.

1. They are ignorant.

2. They are pretending to be ignorant.

have a nice day.

I will scan the document and upload it here later

just 2 make it simple, if u loan rm150,000 for 15 years, every month u need to pay the bank rm1578
but if u have full document then u can directly apply for this loan with bank rakyat, no need to contact me, because i'm doing this for those who cant get high loan amount or those who are blacklisted by the banks. If u have a salary of 6k, the bank will usually offer u around 50k loan and max of 15 years.

The savings plan is from AMBANK, not bank rakyat. I will also scan the document up later. The basic details are like this...

must at least invest into the bank for 21 years (long term) if u want 100% profit

must at least invest RM2000 per year

interest for 1st 3 years is 8%, after 3 years the interest will be 10% every year

this saving plan includes life and 36 coverage insurance.

every 3 years, u can take back around 8% of your investment by cash from the bank (that includes the investment of the insurance, amount is around rm2000), this is optional, if u don't take the money out, the bank will give u extra bonus.

after 21 years u will get back the total amount that u've saved.



I'm currently in ipoh, anyone who's interested in any of these can contact me by hp. 012-6065012 and i'll arrange a meeting with u. Anyone who are in KL who's interested can PM me so that i can arrange a date to meet u all together. Please note that the loan is for those who cant get high amount of loan and those who are blacklisted by the banks, those who have full document and have good salary can directly go to bank rakyat. And if u want to take this loan, there will be some terms and conditions, e.g u have to prepare some money (few hundred) for the arrangement (refundable if loan not approve). And if the bank approved the loan, i will take some percentage from the loan as commission. These terms and conditions are non-negotiable and i will personally explain it to u when i meet u. So my advice to u is this, do contact me when u are in dire need of cash, and the minimum loan amount is RM50k, and the loan approval takes minimum 3 weeks time.

Thank you very much.

What do you mean? I thought we use this forum as a platform to discuss.

Of course u will pay 2%. Its 2% based on loan amount not 2% based on balance. What do mean by we not paying 2%?

I not sure the term u use. Is it the same with rate base on loan amount or rate base on balance(reducing balance)?

By the way currently I am intend to apply any loan, so that's why try to discuss in this forum.

Have a nice weekend to you.

Yes - the monthly repayment is simple.

but if u work it backwords - it's still 5.95% flat or 10.2% effective rate.

I have nothing against u, but I felt that readers should know the real rate which they are paying.

---

Added on March 13, 2009, 10:29 pmWell, I think you're misinformed on a few points. And - i guarantee you your wife is paying a flat rate on her loan, if it's from Bank Rakyat (no disrespect intended to your mrs).

let me explain.

a flat rate does not take the effect of reducing balance into account. Interest is pre-defined UPFRONT as per Rule of 78.

an effective rate takes into account the "reducing balance" principle.

As such, a 5.95% flat rate is actually an effective rate of 10.2%.

Secondly, pls pay attention to your car loan.

your 2% on your honda is not charged on reducing balance!!!!!!!! It's charged UPFRONT on your ORIGINAL loan amount.

If u want to test it out - why don't you PREPAY on your personal loan or hire purchase. I GUARANTEE you that you will not enjoy any interest savings.

I hope that I made your weekend.

This post has been edited by Phoeni_142: Mar 13 2009, 10:31 PM

Ooo, if that is what you mean then I am fully understand about this issue for many years back. I thought you mention something like hidden cost which bring the interest to go up so much.

I am not sure the benefit that you gain by converting flat interest rate to reducing balance interest rate. I thought it is very standard that all banks offer car loan & personal loan using flat rate & house loan using reducing balance unless there are changes in the market nowdays.

For example car loan, Bank A give you 2.5% flat rate & Bank B give you 2.7% flat rate. For sure Bank A is better, do not need to convert to reducing balance. I don't really see the need of that. The most important is how much you the total amount need to pay.

it is actually a flat rate, the document that bank rakyat provides even list all the amount, rates, monthly payment for how many years down FYI, the example i've provided for u (RM150K for RM1578 per month) actually came from that document, it is quite detailed and easy to understand.

I am just concerned that there may be people that think they are only paying 5.95% on their personal loans, which is so much lower than their credit card interest of 18%. They are not comparing apples with apples.

hidden costs? No hidden costs - but if u early settle - the amount will be mind boggling for a flat rate loan. Different story for different day.

if u understand the different types of rates which u are paying, and if u have no problem sleeping at night - that's fine.

cheers

This post has been edited by Phoeni_142: Mar 17 2009, 10:08 AM

Phoeni_142 .... so ur saying RHB offers a more attractive personal loan at 12% reducing balance?

or is there a better personal loan out there? I'm interested in repaying a RM10k loan, of course with lower interests on a whole at the end of the day.

from a RATES perspective, RHB is charging the lowest rate in the market. (vs. other commercial banks)

Again, u have to compare apples with apples. i.e. Effective Interest Rates with Effective Interest Rates.

Bank Rakyat at 5.95% fixed rate should be better.

I said amongst commercial banks - RHB has the best rates. Pls read again.

Bank Rakyat is a cooperative bank, which does mainly government loans.

Bank Rakyat does not come under the jurisdiction of Bank Negara Malaysia. Good luck if they change any terms on their own whims and fancies.

OIC, miss that part.

However, that 12% RB rate only for loan >RM100k. For small amount not so good. Other bank is better.

Attach photo below take from RHB website.

This post has been edited by GHz: Mar 17 2009, 11:59 AM


Attached thumbnail(s)

That's a good point. From your table - anything less than 100K looks uncompetitive from RHB. The bank is also "honest" in providing the flat rates there. Thanks for bringing this up.

If that's the case - anything less than 50K loan - look's like Al-Rahji & Citibank seems to be the most competitive from a RATES perspective.

Yes, they are "honest" but I think it is more their responsibility as they deviate from norm where others using Flat rate.

How about BIMB, they offering 7% right? How about Bank Muamalat, I have personal loan with them 3 years ago, During that tine their rate only 6.25%. Not sure how much now.

For Bank Islam - they maily do cooperative lending, which offers loans mainly to government servants. You can get less than 7%. In fact, can be as low as 5.1% depending on loan tenure. (Reciting from memory, please check for accuracy)

For Bank Muamalat - Which company do you work for? DRB-HICOM? If memory serves, they also do cooperative lending to government servants, and only to selected private companies. Payment is also via salary deduction....which u have to get HR to endorse on your loan application. Again, I'm not too sure what procedure applied to you back then, but this is the current practice today.

Long story short - a regular joe that works in the private sector isn't eligible for the two banks above - unless their companies have a special tie up with the banks to facilitate salary deduction or they are governmen servants. On that point, I'm pretty sure.

This post has been edited by Phoeni_142: Mar 17 2009, 02:07 PM

No, I am not working with government or DRB-HICOM. I am working at private sector & the paymanet is not by salary deduction. But I think you are right, if I still remember correctly, the bank officer told me that it is not easy to get personal loan if you are working in private company. I got mine maybe because maybe because my relation with the bank officer is quite good. In fact I manage to take the loan twice.

But, why not the regular joe that works in the private sector give a try. Maybe he lucky.

Are you working with bank?

hey stormic,

"be prepared to ask your HR for consent to cut your salary. Some people may want this to be a private affair.

Long story short - your HR department must send a cheque to Bank Rakyat every month for your monthly installment.

Your salary which is banked into you account, will be less of the loan installment.

Anyone from Bank Rakyat which says otherwise - either doesn't know their own product well, OR is misleading you."


is it true ar?

For calculating effective interest rate, you can use this excel file.

This post has been edited by zephyryu: Mar 17 2009, 10:01 PM


Attached File(s)
 EIR.zip ( 4.88k ) Number of downloads: 146

thanks for the file..

but do take into consideration the actual amount of money you will get on the personal loan. whether the bank minus stamp duty or other charges. some banks you will not get 100% of the loan.

n i did take PL with RHB march last year during the '2 months later promotion'. which means you only start paying for the loan, 2 months after you get the money. amount is 6k, repayment 282/month for 24 months. actual amount i get is 6k, no other charges. they straight bank-in to your savings account.