It helps to understand more about loan products and their uses before making a decision about financing. By relying on your bank as a source for financing, you can easily budget your money and save for future living or educational expenses.
Personal Banking Loans
Normally, personal banking institutions feature the following loans:
- Educational loans are designed for both the children of banking customers and the customers themselves. Whatever you save for university fees, you can receive double the amount in financing. With twice the cash, you can more easily realise your educational objectives.
- Overdrafts allow you to pledge certain assets for additional cash when you need it.
- Home loans are used to provide you and your family with your desired home. You can select from a range of innovative financing arrangements to finance your dream property.
Most people who obtain bank loans often apply for a home loan. You can choose from a number of repayment options. Loans come with fixed and variable rates and can be repaid for up to 35 years or once you turn 70 years of age, whichever comes first. If your loan is for a first home, you have up to 35 years to repay the financing or up to when you turn 65 years old, whichever comes first.
When applying for a home loan, you must be at least 18 years old. There are no restrictions placed on the loan amount. However, if you are seeking financing for a first home, the loan must be for a property between RM100,000 and RM500,000. For this type of financing, a single applicant’s income cannot exceed RM5,000 per month. If a joint application is made, the borrower’s gross income should not exceed RM10,000 per month. This is one of the types of bank loans in Malaysia that is popular amongst young people today.
If you choose to apply for a standard housing loan, no notice is needed on additional repayments that are made. You can also include or convert the financing to an overdraft facility. Variable rates on the loan are connected to the base rate or BR.
A First-time Home Loan
If you are applying for a loan to obtain your first home you can obtain 100% financing. Loans of this type are designed for residences that are either under construction or completed. Loan applicants cannot be over 40 years of age. The financing is designed specifically for Malaysians. If you are a first-time home buyer, you must also be the occupant in the house.
You can talk to a bank about financing a low-cost residential property. For this type of loan, you can apply for financing up to RM250,000 if the property is located in peninsular Malaysia. The repayment for the loan is 30 years or until you are 65 years old, whichever comes first.