MBSB Afdhal-i

Tell me about MBSB Afdhal-i.

MBSB Afdhal-i is an unsecured Shariah-compliant personal financing that is only open for contract employees of the government, selected GLCs including high-income premium customers in selected sectors and private companies with a minimum of 5 years in service. As this is unsecured financing, you don’t need a guarantor to apply.

MBSB Bank offers a high financing amount of up to RM400,000 and you can also choose from financing tenure as short as 2 years and up to a maximum of 10 years to part-finance your personal needs.

What are the profit rates?

In reference to MBSB Bank, the profit rate of MBSB Afdhal-i is a variable rate and is calculated on a monthly rest basis. With this financing, you’ll be able to enjoy standard profit rates equivalent to a 3.06% p.a. flat rate, with an Effective Profit Rate of 5.80% p.a. for 3 years tenure. For refinancing, you'll get an Effective Profit Rate of 5.70% p.a. (equivalent to a 3.01% p.a. flat rate at 3 years tenure).

Meanwhile, if you prefer a longer tenure between 4 to 10 years, you’ll enjoy a 4.12% p.a. flat rate, with an Effective Profit Rate of 7.30% p.a. instead. 

See the table below for better clarity.

The SBR of MBSB Bank is currently at 2.75% p.a. and the Ceiling Profit Rate is 15% p.a. Since the profit rate is a variable rate, it may change from time to time based on the reference rate such as the SBR.

If the SBR changes — which is influenced by the OPR set by BNM — there’s a chance that your profit rate will change and thus influence your monthly instalments. However, the increase in the profit rate is capped at the Ceiling Profit Rate as mentioned earlier.

Additionally, rest assured that if there’s any change regarding your loan, MBSB Bank will inform you by giving at least 7 days prior written notice or via electronic means.

Am I required to take up the Takaful coverage?

It is not compulsory for you to opt for the Group Credit Family Takaful coverage for your MBSB Afdhal-i financing. However, MBSB Bank highly recommends it to help cover any outstanding balances of your facility if unforeseen circumstances happen to you such as death or total permanent disability (TPD).

What are the fees or charges of this personal financing?

The fees or charges that you need to take note of will be the following.

• Wakalah Fee: RM34.00
• Late Payment Compensation: 1% per annum on such overdue amount during the facility tenure or if it’s after the maturity of the facility tenure, then a rate that won’t exceed the prevailing daily overnight Islamic Interbank Money Market rate (IIMM) will be charged on the outstanding balance

Can I fully settle my financing before its maturity?

Yes, you may and MBSB Bank won’t charge any early settlement fees to you. Instead, you’ll get an Ibra’ or rebate by MBSB Bank where there are either:

• Early settlement or early redemption of the Facility; or
• Settlement of the original financing contract due to financing restructuring exercise; or
• Settlement by you in the case of default; or
• Settlement by you in the event of termination or cancellation of financing before the maturity date

You may find the Ibra’ calculation in the PDS here.

I’m interested but am I eligible to apply for MBSB Afdhal-i?

You are eligible if you’re a Malaysian citizen aged 19 years old and not exceeding 60 years upon the expiry of the financing or optional retirement, whichever is earlier. You also must be either:

• A contract employee of the Government, GLCs, local councils and selected companies having salary deduction arrangements with the Bank with at least 12 months in service (applicable for Biro cases only);
• Permanent / Contract employee of listed Private Sector companies having salary deduction arrangement with the Bank (Non-Biro);
• Premium Customers - High-income employees (contract / permanent) of Government, GLC, SGLC, statutory bodies and selected private companies with at least 5 years in service.

Please note that the remaining contract term for contract employees must be 12 months and above at the point of application entry.

What documents should I prepare?

Ready to apply? Please prepare the following documents to ensure a smooth loan application journey.

Salaried employee:

• Copy of your IC/MyKad (front and back)
• Latest 3 months' salary slips
• Latest 3 months' Savings/Current Account Statements (salary being credited)
• Latest BE Form and Tax Receipt/EA Form/EPF statements
• Any other latest supporting documents if required

Self-employed:

• Copy of your IC/MyKad (front and back)
• Business registration/Form 9, 24, 49, B&D/M&A
• Latest 3 months' Savings/Current Account Statements (salary being credited)
• Latest BE Form and Tax Receipt/EA Form/EPF statements
• License for Professional Certificate
• Latest B Form and copy of Tax Receipt
• Latest 6 months' current account statements (Company and Personal)

How can I pay my monthly instalments?

There are several ways you can pay your monthly instalments.

1. Through a salary deduction via Biro Angkasa, Account General or employer salary deduction; or
2. You can make a payment at any of MBSB Bank’s branches nationwide; or
3. Through electronic payment via Interbank GIRO/Instant Transfer, Standing Instruction/Auto Debit

Am I qualified to apply for MBSB Bank personal financing if I’m blacklisted?

Depending on your credit history with other financial institutions because all this information (outstanding credit card, personal loan, home loan or car loan debts) will be captured in CCRIS / CTOS (a system that collects credit information on borrowers, not blacklisting them).

Assuming you have poor credit standing due to irregular payments, the best course of action would be to break the habit and start making your payments on time to avoid future hurdles.

MBSB Bank is more likely to approve your personal loan application if you can show that you are managing your personal finances, rather than accumulating more debt.