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Bank Islam Personal Loan

Bank Islam offers a personal loan package called the Bank Islam Personal Financing-i which is a public sector loan accessible only through employment in the public sectors and/or selected Government-Linked Companies (GLC).The interest rates at Bank Islam are relatively competitive – the bank offers three interest rate tiers in addition to an even better interest rate if you choose selected Takaful products. In case it should concern you, the Bank Islam personal loan is a Sharia based product grounded on Wakalah contract. If you’re still wondering what Takaful products are, wonder no more. Takaful products include services likeTakafulWill writing, Banca Takaful or BankIslam Card-i.

The Bank Islam Personal Financing-i offers a minimum loan amount of RM10,000 and a maximum loan amount of RM200,000. In order to be eligible for the Bank Islam personal loan, you should be a Malaysian citizen 18 years old and above, and have a stable job position with a government sector or a GLC with a minimum monthly income of RM2000. Like most other banks in Malaysia, no guarantor is needed when applying for a personal loan. The bad news is there is such a thing as interest; the good news is you have the option to choose between fixed and floating interest rates. A fixed interest rate could be 3.25% per annum for one to three years, or 4.99% per annum for four to ten years. A floating interest rate could be BFR -1.70% per annum for one to three years or BFR-0.40% per annum for four to ten years. Take note that not all banks in Malaysia offer the choice between fixed and floating interest rates. However, having an option between fixed and floating interest rates may not always be such a good idea especially when the economy is going well. The other side of the coin is you might be very happy with yourself because it is certainly beneficial to have an option of fixed and floating interest rates when interest rates can increase by over 10% in Malaysia during times of economic recession.

The application process for the Bank Islam personal loan is simple and fast. Some of the documents you will need when applying for this loan are copies of your identity card (both front and back), your most recent 90 days salary slip, your most recent 90 days bank statement with salary credit account, and your employment confirmation contract.

When you apply for the personal loan with Bank Islam, take note that there are no processing charges, however, there will be a chargeable RM50 Wakalah fees. A stamp duty of 0.55% which is based on the loan amount is also applicable.

When it comes to repayment, Bank Islam has made it convenient and relatively painless. The repayment of the Bank Islam personal loan is done through auto salary deduction. The maximum amount that will be deducted from your salary is 50% – 60%. A penalty of 1% will be charged for any late repayment. The maximum repayment period is 10 years.

Employees of the public sector and Government-Linked Companies are the lucky few who get to enjoy the benefits of the Bank Islam personal loan as it is not open to everybody. The Bank Islam Personal Financing-i stands out from the rest as it includes a host of other services with its product, so if you are eligible, don’t miss out on this chance.