if you're in government sector - suggest u head over to Bank Rakyat, Alliance or CIMB, for cooperative loans.

If you're in the private sector - try CIMB Express or Alliance Rakan. They also focus lending towards the sub-prime segment.

This post has been edited by Phoeni_142: Jan 11 2009, 11:14 PM

Chances are the sales person mis-sold to you.

Loans on Islamic platform are similar in nature to HP loans.

Early settlement is based on the Selling Price (Principal + Upfront Interest) - your repayments so far x Early Settlement Rate.

This is why it is never advisable to early settle in the earlier part of your loan tenure.

If u want - let me know what's your early settlement penalty rate, loan tenure, loan amount and # of payments made so far - and I'll calculate your fee for you.

This post has been edited by Phoeni_142: Jan 15 2009, 10:12 PM

Hi, IMO

Your loan MAY be rejected.

1. Using their Income derivation method - Your "derived income" may be more than 2K. However, your actual salary is not.

2. Since u are applying via your credit card, the bank most likely won't check your payslip. However, high chance that a credit verification personnel will call u or your HR dept to confirm your salary. Once they find out that it's less than 2K - chances are that your laon will be declined.

U may want to question your salesperson about this. It will save a lot of time in this process.

Sigh - There's no free lunch in this world, my friend. In your case, there's no free credit!

Think back to you application forms - I am pretty sure u had to put your employment details. One way or the other, they WILL DEFINITELY get in touch with your HR. It WILL NOT stop at just your declaration letter.

By the way, you can forge a letter. You can't forge a phone call to HR.

i assume u do not have a business yet.

considering u want a loan to start a business - the quickest and most feasible option u have is to apply for a personal loan, under your capacity as a salaried worker. The banks won't care what u use the loan for, as long as u have the capacity to pay.

however - if u r unemployed, and intend to start a business - IMHO, no banks will bother entertaining u.

the best bet u have then would be to approach SMIDEC (google it if interested pls)

This post has been edited by Phoeni_142: Feb 12 2009, 05:13 PM

Tough, very tough.

About half the banks out there - u don't qualify already. Most of them need to see at least 1 year CCRIS record. Long story short - u must have a credit card for at least 1 year.

If u r a government servant - try Alliance, Bank Rakyat or Ambank.

if u r a non-govn employee - think your best bet is with RHB. I'm quite sure the foreign banks are out. However, if u do get an approval from a foreign bank - pls let me know.......it'll be interesting to know that some of them have adjusted their credit policies.

Er - i don't think that's particularly good. Perhaps u should rethink your financing options.

Alliance is offering at 5% promotional rate now - yes, for government servants via salary deduction.

Bank Rakyat is charging u more. I know that for a fact.

Secondly - I hope that 30K is what u needed, correct? Because u actually qualify for a loan of 150K with your current salary.

Scary huh? 2500 salary can get 150K loan.

PS - I am in banking - but I'm not a salesperson.

This post has been edited by Phoeni_142: Feb 20 2009, 12:35 AM

sorry - u mean u worked for 6 months and not confirmed yet? pls clarify.

Peeps,

be careful when applying for HLB loans, ok?

1% per month is the flat rate - this implies 12% flat rate per year....it's charged like Hire Purchase style.

12% flat rate = effective rate of 20.3%!!!!!!!!!!!!!!!! MORE THAN CREDIT CARD INTEREST!!!!!

Do not be mis-sold by any personal loan agents all right? cheers.

Let me put it to u this way

Yes, 12% is the per annum rate.....However, this is a flat rate. It is NON REDUCING BALANCE.

The effective interest rate is 20.3%. (This takes into account reducing balance) U can use the RATE formula in Excel to calculate it. It's a function of your loan amount, monthly repayment and tenure (yrs).

If in doubt - ask the sales agent directly. I'd be very worried if he or she does not know the difference between flat rate and effective rates.

It is misselling if u quote 12% directly. It's grounds to complain to Bank Negara, ok?

Depends again - is 9.8% the effective rate (reducing balance) OR is it a flat rate?

kindly clarify with the sales agent, and pls don't be missold by him or her.

If it's 9.8% effective rate - IMHO - it's a good rate.

Well - to be fair, the 7.99% flat rate is quite competitive.

The effective interest rate is approx 14%, which is still lower than the Credit card interest rate.

The only catch would be if u want to do an early settlment in the earlier part of the loan tenure - be prepared to pay a hefty penalty.....the penalty is calculated based on the selling price of the loan, not the amount outstanding.

cheers.

I could be wrong, but from my experience - your loan application will be declined, as it is below most income thresholds + you do not have any previous unsecured loan history.

Do try OCBC or SCB if u really want a personal loan. I'm not too sure if they can give allowance for deviation approval in your case.

Another alternative is for your to apply for credit cards (shouldn't be a problem) since u have a clean credit history - and then asking for a Cheque on call or Fast Cash feature. slower TAT, but u should get access to credit here.

That's a very misleading statement. 5.95% is actually the flat rate. The effective rate is actually 10.2%. So, please don't give the readers the impression that it's only 5.95%. If you're a sales person, you should know the difference between flat and effective rates.

Secondly, what savings plan of 10% is this? I check with Bank Rakyat regularly - they did not know of such a plan. Can u share some light on this? I would love to be wrong on this 10% savings plan. I'd personally put some of my own cash there.

tx.

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Added on March 13, 2009, 3:05 pmevery bank out there quotes flat rates except for RHB which is on reducing balance.

your 5.95% flat rate is actually 10.2% effective rate.

Same goes with your Citibank and SCB and OCBC - don't be suprised if u are paying more than the 18% credit card interest.

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Added on March 13, 2009, 3:08 pmbe 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.

This post has been edited by Phoeni_142: Mar 13 2009, 03:08 PM

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.

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.

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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

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

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.

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.

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.