Frequently asked questions
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Let us clear up some of your doubts before we get started.
1What is the difference between flat rate and reducing rate?
A flat rate of interest is where the rate of interest to be paid remains the same for the duration of the loan as it is always calculated against the original amount borrowed (principal).
A reducing rate of interest is where the amount of interest to be paid takes into consideration the repayments that have been made, so it is calculated against the remaining loan amount or outstanding balance, rather than the original principal amount.
2What is a security cheque?
A security cheque is a type of guarantee when we give any type of credit facility including credit cards, personal or car loans or mortgages.
3Do you hold customers’ ATM cards?
No, we do not request or hold any customers’ ATM cards.
4Can foreign individuals apply from local banks?
The individual is only eligible if one of the shareholders is a Malaysian holding 51% of the shares.
5What are the documents needed to apply for bank loans?
For Sdn Bhd companies, you will require a full set of SSM, directors' IC copies, 6 months’ bank statements, company forms, latest audited reports and latest 2 months’ debtor and creditor aging reports.
For Enterprise/Sole Proprietors, you will require a full set of SSM, director's IC copy, 6 months bank statements, latest management account and tax payment receipts.
For Enterprise/Sole Proprietors, you will require a full set of SSM, director's IC copy, 6 months bank statements, latest management account and tax payment receipts.
6How long do I need to wait to reapply for a bank loan if I have cleared my CCRIS issues?
You will need to wait for approximately 3 to 6 months for CCRIS to refresh their database.
7What is the minimum age requirement to apply for a bank facility?
The minimum age requirement is 21 years old.
8Is it necessary to check for the status of the latest CCRIS report?
Yes it is absolutely necessary. Central Credit Reference Information System (CCRIS) is a report or statement of all your credit/loans with the bank. All your credit records will be issued in a brief report. The bank will use this CCRIS report to evaluate or assess your loan eligibility.
9Can I apply for a loan if I have never declared any tax?
You will need to bring 2 years' worth of tax returns to your loan officer. If you don't have them, you will be unlikely to get a loan. An easy way to derail the loan process is to explain that you have not filed your taxes for the previous year yet.
10How long will it take to get the funds I have applied for?
It depends on the loan amount and the application time frame, as there may be a waiting period before you receive funds.
11How much should I borrow?
The minimum and maximum borrowing limits are set by each lender and the amount of the personal loan limit depends on your creditworthiness. Ask yourself about your needs. Borrowing more money than you need ends up making the loan more costly over time.