Optional Takaful CoverageWhy should I apply for MBSB Private Sector-i financing?
Personal financing can help you bridge the gap for your personal needs. And if you’re looking for a suitable financing option, particularly curated for practising Professionals, then MBSB Private Sector-i can help you with that. Here’s a brief look at the features and benefits you can expect to get from this unsecured Islamic financing:
- Based on the Shariah concept of Tawarruq
- High financing amount of up to RM300,000
- Extended financing tenure of up to 10 years
- Competitive variable profit rates
- No guarantor required
- Optional Takaful coverage
- No charges on early settlement
What are the profit rates?
According to MBSB, the profit rates of the MBSB Private Sector-i are calculated based on variable rates and monthly rest basis. You will be able to enjoy low-profit rates equivalent to a 6.29% p.a. flat rate, with an Effective Profit Rate of 11.60% p.a. for 3 years tenure.
For longer tenures between 4 to 10 years, you’ll get a 7.15% p.a. flat rate, with an Effective Profit Rate of 11.90% p.a. See the below table for better clarity.
| 3 Years Tenure | 4 - 10 Years Tenure | ||
| Effective Rate | Flat Rate | Effective Rate | Flat Rate |
| 11.60% p.a. | 6.29% p.a. | 11.90% p.a. | 7.15% p.a. |
It is also worth highlighting that MBSB’s current SBR is at 2.75% p.a. while the Ceiling Profit Rate is at 15% p.a. as of writing. And 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, the Bank will inform you by giving at least 7 days prior written notice or via electronic means.
Should I take the Takaful coverage for my personal financing?
The Group Credit Family Takaful coverage is optional. However, it is highly recommended that you opt for it as the Takaful will cover the outstanding amount of your personal financing in the case of your death or total permanent disability (TPD).
Are there any charges that I should know of?
Yes, there are charges that you should know about. They are Wakalah Fee and Late Payment Compensation and the details are as follows.
- 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 loan early?
Yes! If you wish to settle your loan early, you may do so without any charges. The Bank will also grant Ibra’ or rebate to you as the customer 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.
Am I eligible to apply for MBSB Private Sector-i?
Any Malaysian citizen aged at least 21 years old up to 60 years old upon the expiry of the financing or optional retirement, whichever is earlier, is eligible to apply for MBSB Private Sector-i. Other eligibility criteria include the following:
- Earning a minimum monthly income of RM5,000 and should be inclusive of the gross salary, fixed allowance and other non-fixed income;
- Permanent employees of publicly listed companies, GLCs, state GLCs, multi-national corporations, education sector companies and their subsidiaries as listed by the Bank;
- Permanent professional employees of private companies (employee must have a valid Professional certificate);
- Self-employed practising professional (with valid Professional certificate) with minimum 2 years of establishment of the business/firm
What documents should I prepare?
To ensure you have a smooth application journey, please prepare the following documents to apply for MBSB Private Sector-i.
Salaried employee:
- Copy of your IC/MyKad (front and back)
- Latest 3 months' salary slip
- 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 a few ways that you can pay the monthly instalments for your MBSB Private Sector-i which include:
- You can make a payment at any of MBSB Bank’s branches nationwide; or
- Through electronic payment via Interbank GIRO/Instant Transfer, Standing Instruction/Auto Debit; or
- Salary deduction via Biro Angkasa, Account General or employer salary deduction
Am I qualified to apply for MBSB 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 a 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 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.
