MBSB stands for Malaysian Building Society Berhad has been around for over 50 years and is providing financial services to Malaysia. Although not being a bank, MBSB is an Exempt Finance company allowing it to operate finance based business ranging from savings account to student loans while not operating under Bank Negara’s policy. MBSB is actually very much owned by EPF and Malaysian government.
MBSB personal loan has been long catered for Malaysian public servant with very competitive rates. It has also recently opened it’s personal loan application to private sector as well although with higher interest rates. For a start this loan is also a Shariah compliant loan. The interest of the loan is defined by Current Islamic Effective Cost of Fund (ECOF-i)
Here are some of the loan packages that are offered by MBSB.
|MBSB Personal Loan for private sector ( Pembiayaan Peribadi-i Sektor Swasta )|
|Interest at 6.50% p.a flat rate for around 10 years|
|Maximum RM 300,00 Financing available|
|Maximum 10 years repayment|
|Selected Private sectors , Public Listed Companies, Certified Professionals|
|No guarantor needed|
|Minimum 2 years permanent employment|
Finally, MBSB has decided to have personal loan for private sectors as well. This personal loan is unsecured loan where no guarantor and collateral is required. MBSB Personal loan provides up to RM 300,000 of financing with a maximum repayment of 10 years with a fast approval process.
It comes with an attractive BLR + 4.5% p.a with monthly reducing balance. At the time of writing BLR 6.6, you will be getting 11.1% p.a. How is this different from other banks who are offering 8.8% p.a. (flat rate) ? The effective interest rate of flat rate is actually near double while with monthly reducing balance, you are probably getting the same interest rates as advertised. So the effective interest rate for 8.8% p.a. would probably be somewhere 16% to 17% p.a.
Charge and Cost
Takaful insurance is optional for this loan. There is a 1% p.a penalty for any late repayment
This loan is only available for Malaysian citizens. The minimum age requirements is 21 years old while not more than 60 years old (or retirement age) at the end of loan tenure. This loan is available to private sector however to limited selected Public Listed Companies, Government Link Companies, Multinational companies, Private Education companies and Certified Professionals. The list is defined by MBSB. You will need to have at least 2 years permanently employed to be eligible for the loan. The minimum salary for the loan application is RM 3,000.