Mbsb Personal Loan

Malaysian Building Society Berhad, also known as MBSB is a financial body that has been in operation for more than 50 years in providing financial services to individuals residing in Malaysia. Despite that it is not a bank, MBSB was given exemption by the Malaysian Government to operate a finance based business that offers from saving accounts to student loans. It also does not need to operate under the central bank of Malaysia, Bank Negara Malaysia’s policy and instead, it is fully owned by EPF, Employee Provident Fund and the Malaysian Government. Since then, the MBSB company has long catered to the needs and requirements of Malaysia’s public servants by offering very competitive rates in their financial based products. The two personal loans packages that are offered by MBSB are MBSB Personal Financing-i Private and MBSB Mumtaz-i Public. Recently, employees working in the private sector are also able to apply for these personal loan packages offered by MBSB but with a price, higher interest rates. Both of these personal loans are also strictly compliant to the Islamic Syariah standards and instead of base rates are commonly used, MBSB uses the concept of ECOF-i, Current Islamic Effective of Fund to determine their interest rates.

 

MBSB Personal Financing-i

With a flat interest rate of ECOF-i + 4% which directly translates to 6.43% per annum with a maximum of 10 years as the repayment period, MBSB Personal Financing-i is a personal loan package is that specially designed for employees that are working in a selected list of private sectors, public listed companies and certified professionals. Due to its nature as an unsecured loan, there is no need for the loan applicant to provide neither a guarantor nor a collateral to apply for it. MBSB also promises a fast approval time for this personal loan package. The advantage of this personal loan package is it has a very high financing amount of up to a staggering RM300000 and its disadvantage is this package is only available to a selected list of companies.

 

MBSB Personal Financing-i Fees and Charges

While there is a penalty fee of 1% per annum of the outstanding amount for late repayments, there is no processing fee and hidden fees involved for the loan application. However, the loan applicant will have to pay 0.5% of the loan amount as a Government stamping duty fee and further charges may incur if you are also required to take the Takaful insurance coverage that is based on your total loan period and these service charges are subjected to GST charges. However, it is stated by MBSB that Takaful Insurance coverage is optional for this personal loan package. Although it is possible to settle the loan early, I would not recommend so as you will need to give a month’s notice to MBSB in writing and you will be charged an early termination fee.

 

Requirements

In order to eligible for MBSB Personal Financing-i personal loan, the loan applicant will also need to be a Malaysian citizen and be between 21 to 60 years old by the end of the loan tenure besides being an employee in the selected list of private sectors, public listed companies or certified professionals. Employees that are working in a selected list of Government Link Companies, Multinational Companies, and Private Education companies defined by MBSB are also eligible to apply and the minimum income required is a monthly gross income of RM3000. The required documents are photocopy of your MyKad for front and back, a copy of your latest three months’ salary slips and these salary slips must be certified by your employer or head of department, an employment confirmation letter with your full name, MyKad number, designation, employment status, stated salary and employment date from your employer and latest 6 months of your bank statements where your salary is debited in. The approval time will be quick but it will take a few business days for the processing time and then the funds will be transferred into your bank account. The loan repayment can then be made through over-the-counter in MBSB branches.

 

MBSB Mumtaz-i Public

With a flat attractive interest rate of just ECOF-i – 2.0 which directly translates to only 3.66% per annum with a maximum of 10 years as the repayment period, MBSB Mumtaz-i Public is a personal loan package is specially designed for Government servants only. Due to its nature as an unsecured loan, there is no need for the loan applicant to provide neither a guarantor nor a collateral to apply for it but the approval time may not be as fast when compared to the MBSB Personal Financing-I package and the maximum financing that is available is only RM250000, RM50000 lesser than the MBSB Personal Financing-i package.

 

MBSB Mumtaz-i Public Fees and Charges

While there is a penalty fee of 1% per annum of the outstanding amount for late repayments, there is no processing fee and hidden fees involved for the loan application. However, the loan applicant will have to pay 0.5% of the loan amount as a Government stamping duty fee and further charges may incur if you are also required to take the Takaful insurance coverage that is based on your total loan period and these service charges are subjected to GST charges. However, it is also stated by MBSB that Takaful Insurance coverage is optional for this personal loan package. Although it is possible to settle the loan early, I would not recommend  so as you will need to give a month’s notice to MBSB in writing and you will be charged an early termination fee.

 

Requirements

Apart from being a Government servant, the loan applicant will also need to be a Malaysian citizen and be between 21 to 60 years old by the end of the loan tenure in order to apply for this personal loan package. The required documents are a photocopy of your MyKad for front and back, 2 copies of your latest three months’ salary slips and these salary slips must be certified by your employer or head of department and latest 6 months of your bank statements where your salary is debited in. It will take a few business days for approval and processing time and then the funds will be transferred into your bank account and the loan repayment will be deducted from your monthly salary during each month.

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