What scheme do we offer
- Full Range of Business Loan
- Government Grants
- Term loans / Trade Facilities
- Loan amount: RM100,000 to RM5 Million
Financing Cost
- Interest Rate: Follow Bank Rate But 2% Discount from Government
Tenure
- Maximum 5 years
Eligibility Criteria
- Annual sales turnover > RM500,000
- SMEs undertaking Shariah-compliant business activities
- Malaysian owned ≥ 60% shareholding
- In operation for at least 2 years
- SMEs must comply to one or more of the following : –
- SME rated with at least 2 Star under SCORE
- Micro enterprise (ME) rated with at least Level 1 under MCORE
- Certified under 1-InnoCERT
- Certified under National Mark of Malaysian Brand
- Accorded the MSC status by MDeC
- Accorded the Bio-Nexus status by Malaysian Biotechnology Corporation
- Certified under the Green Tech Cert of Malaysian Green Technology Corporation
Trade Facilities
- Term loans / Overdraft / Trade Line
- Loan amount: RM100,000 to RM3 Million
Financing Cost
- Interest Rate: 4% to 6% p.a. (Reducing Method)
- CGC Guarantee Fee: 3% to 5% p.a.
- 1% p.a. commitment fee for non utilization OD
Tenure
- Maximum 5 years
Eligibility Criteria
- Annual sales turnover > RM500,000 but < RM25 Million OR Full-time employees < 150 people
- Shareholders’ Fund < RM2 Million
- BUMIPUTRA owned ≥ 51% shareholding
- Company in operation for at least 3 years but less than 7 years.
If more than 7 years, the net profit margin for the last 3 years must be < 3% - Paid-up capital ≥ RM100,000
Securities
- Collateral: Yes. Ratio range from 1:3 until 1:5
Processing Period
- Offer Letter will be out within 45 to 60 days upon full complete application
- Loan drawdown will be 45 to 60 days after the Offer Letter is signed
- 3 – 4 Months
Trade Facilities
- Term loans / Overdraft / Trade Line
- Loan amount: RM100,000 to RM500,000
Financing Cost
- Interest Rate: 6% to 8% p.a. (Straight Line Method)
- 1% p.a. commitment fee for non-utilization OD
Tenure
- Maximum 3 to 5 years
Securities
- Collateral: No
Processing Period
- 1 to 2 months
Key Factor
- Offer to CCRIS issue Company
- Must have Property / Land as Security
- Other Form of Repayment Capacity is allowed
- Do not submit Income Tax ALSO CAN
Trade Facilities
- Term loans
- Loan amount: RM100,000 to RM10 Million
Financing Cost
- Interest Rate: 1% per month (Reducing Method)
- No Guarantee Fee
Tenure
- Maximum 2, 5 and 7 years
Eligibility Criteria
- Must have Property / Land as Security
- Malaysian owned ≥ 51% shareholding
- In operation for at least 2 years
- Securities
- Collateral: YES
Key Factor
- More than 150% margin of Financing
- Must have Business in Operation
- Mortgage in Commercial Loan + Business Loan (2 in 1)
- Our Fees in charge on Business Loan portion
Eligibility Criteria
- Must have Business in Operation
- Malaysian owned ≥ 51% shareholding
- In operation for at least 2 years
Home Loans in Malaysia – FAQ
Buying a house is probably the most important purchase you’ll ever make. Your home loan is likely to be not only your biggest household expense, but the largest financial commitment of your lifetime. For this reason, we’ve compiled a short guide to explain how a home loan works, and what you need to know before you apply for a mortgage.
What is a Home Loan?
If you already have an existing housing loan in Malaysia and want to change to another product or lender without moving home, it is known as a ‘refinancing’.
How do Home Loans in Malaysia work?
Interest rates for housing loans in Malaysia are usually quoted as a percentage below the Base Rate (BR). For example, if the current BR rate is 4.00% (Update: As of 2nd January 2015, Base Lending Rate (BLR) has been updated to Base Rate (BR) to reflect the recent changes made by Bank Negara Malaysia, and subsequently by major local banks), the interest rate on a ‘BR + 0.45%’ loan would be 4.45%. You can check all the home loan interest rates and fill in the home loan application in the home loan calculator above.
In a typical Malaysian mortgage, you make monthly payments for an agreed period (i.e. the loan tenure) until you’ve fully repaid both the principal of the loan and the interest. During the early years of the loan, the majority of your monthly repayments are used to repay interest, however, as time passes, a larger proportion of your repayments will go into paying down the principal.
BR & Other Loan Terms
Base Rate (BR):
BR in Malaysia is a reference interest rate used by banks to decide how much to charge for various products they offer. In Malaysia, home loans are normally quoted as a percentage above or below the BR. This means, if the BR increases or decreases by a certain amount, the interest rates charged on floating rate loans also increase or decrease by the same amount.
Down payment:
An upfront payment made by the buyer of a house or car (or other highly priced goods/services). Down payments are typically expressed as a percentage of the full purchase price. For example, a 10% down payment of a RM500,000 home is RM50,000.
Foreclosure:
A foreclosure happens when the bank repossesses your property and attempts to sell it in order to settle the outstanding amount on your loan. This usually happens when you consistently fail to pay your loan instalments.
Loan Tenure:
This means “period” or “number of years”. If a mortgage has a “tenure” of 35 years, it usually means it would take 35 years to fully pay off the loan.
Mortgage Reducing Term Assurance (MRTA):
This is a type of mortgage insurance. An MRTA provides protection for an outstanding loan amount (usually a home loan), in the event of death or total permanent disability of the person insured. The amount of protection reduces over time, and normally matches the outstanding loan amount.
Prepayment (of house loan):
Fully or partially paying off your (home) loan before it is due.
Islamic Vs Conventional Mortgages
The banks presented in the comparison table offer both Islamic and conventional loans. Islamic loans are Shariah compliant. Instead of borrowing and lending, Islamic finance relies on sharing the ownership of the assets and therefore risk and profit/loss. Check out our page dedicated to Islamic Home Loans
Refinancing
You might choose to refinance your current mortgage in case another bank offers a lower mortgage interest rate. In order to do it, please submit your application for the bank loan that you would like to take and our mortgage consultants will contact you and explain you the details.
Check out our page dedicated to Housing Loan Refinancing
Some Factors You Need To Be Aware of When You Choose a Home Loan
Margin of Financing: the margin of financing is also known as the loan-to-value ratio. The margin of financing is the amount of your loan expressed as a percentage of the property’s value. The lower the margin of financing, the more ‘equity’ there is in the property. The margin of financing could go as high as 95% (of the value of the house), and is assessed on factors such as:
- Type of property
- Location of property
- Age of the borrower
- Income of the borrower
Early Termination Penalty: Some mortgage lenders may apply an early termination penalty if the loan is paid off in part or in full within a specified time period, including if you refinance the loan with another lender. This specified time period where you are liable to pay an early termination penalty is called the ‘lock-in period’. Depending on the term and size of your loan, this charge can be quite significant.
Fees & Charges: There are a number of related costs (such as professional fees and government charges) that you would have to pay when you take out a mortgage.
Some common fees and charges you would expect to incur include:
- Stamp duties: Sale & Purchase Agreement (0.5% to 1.0%), Loan Agreement (0.5%) and Transfer of Title (1.0% to 2.0%)
- Disbursement Fees: varies by state, land office and type of property
- Processing Fees: one time charge by the lenders (up to a few hundred ringgit).
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