Bank Islam Personal Financing-i

Bank Islam Malaysia Berhad is an Islamic bank based in Malaysia that currently provides Shariah-compliant card services and mobile banking. The bank was established in July 1983 primarily to assist the financial needs of the country’s Muslim population but has extended its services to the broader population. One of the bank’s services being offer is called Bank Islam Personal Financing-i.

Bank Islam Personal Financing-i is a Shariah compliant personal loan that is catered for employees who work in government sector, public sector, and selected government-linked company. This personal loan provides options for fixed flat rate or floating interest rates with no collateral or guarantor needed for the loan. The loan offers from RM 10,000 to RM 200,000 of financing with maximum of 10 years repayment upon retirement age.

Repayment

There are three tiers of fixed flat rate under the Bank Islam Personal Financing-i that start from 3.25% per annum (with Bank Islam and Takaful products such as Bank Islam Will Writing, BancaTakaful products subscription or Bank Islam Card-i) for 1 to 3 years, 3.50% per annum (without Bank Islam and Takaful products) for 1 to 3 years, and 4.99% per annum for 4 to 10 years while the floating rates which tied to Bank Islam’s base financing rate start from 1.65% per annum for 1 to 3 years and 0.35% per annum for 4 to 10 years.

Payment for the loan is made monthly via salary deduction, salary transfer to the bank with auto-debit fund transfer or standing instruction deduction. The maximum deductable would be 50% (if not a house owner) or 60% (if a house owner) of salary after statutory deduction and might goes up to 55% (if not a house owner) or 75% (if a house owner) if the salary is above RM 7,000.

Fees

There are no hidden charges or processing fees needed for the loan. However, a RM 50 Wakalah fee will be charge when you apply for the loan and a 0.5% stamp duty fees which is based on the financing amount. There are cases where Bank Islam may request an advanced payment amounting to 60 day’s repayment before the loan is approved.

Borrowers who want to pay off their loan early are entitled to an Ibra’ (rebate) which is equivalent to the remaining profit at the time of settlement with no penalty fees charged. If payments are not made on time, a 1% per annum penalty will be charged for any late repayment by Bank Islam which will increase the total outstanding amount.

Eligibility

It is clearly stated that the loan is only offered to Malaysian government sector, public sector, and selected government-linked company employees only. The loan is eligible to Malaysian citizen, age 18 and not exceeding the retirement age at the end of the payment period and earned a minimum fixed income of RM 2,000 monthly.

Documentations

For salaried applicant:

·         A copy of front and back NRIC

·         Most recent 3 months’ salary slips

·         Most recent confirmation letter by current employer

·         A choice from one of the documents below:

-          Most recent B/BE/EA/EC form with tax payment receipts attached

-          Most recent 3 months bank statements

-          Most recent EPF statement

For self-employed applicant:

·         A copy of front and back NRIC

·         A Business Registration Certificate

·         Most recent 6 months bank statements

·         Most recent 2 years financial statements

·         Most recent B/BE/EA/EC form with tax payment receipts attached

sources: http://www.personal-loan.my/bank-islam-personal-financing-i/95/