MBSB personal loan has been long catered for Malaysian public servant with very competitive rates. MBSB is now available for Private Sector Employees with higher interest rates, the range of private sector employees are limited to Public Listed Companies and selected GLCs. 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) , this calculation is used as MBSB is not tied to Bank Negara Malaysia. MBSB recevied its financial license from Ministry of Finance (MOF) *Base Rate not being used for MBSB
Here are some of the personal loan packages that are offered by MBSB.
MBSB Personal Financing-I Private Personal Loan
| MBSB Personal Financing-i for private sector ( Pembiayaan Peribadi-i Sektor Swasta ) |
|---|
| Interest at ECOF-i + 4.10% which is 6.43% p.a flat rate for around 10 years |
| Maximum RM 400,00 Financing available |
| Maximum 10 years repayment |
| Selected Private sectors , Public Listed Companies, Certified Professionals |
| Public sector employees |
| No guarantor needed |
| Fast approval |
| Minimum 2 years permanent employment |
*ECOF is MBSB terms for Base Rate
Finally, MBSB has decided to have personal loan for private sectors as well. This personal loan is shariah compliant buy and sell concept while it is an unsecured loan where no guarantor and collateral is required. MBSB Personal loan provides up to RM 400,000 of financing with a maximum repayment of 10 years with a fast approval process.
It comes with an attractive ECOF-i + 4.10% p.a with monthly reducing balance. At the time of writing BLR 6.43, 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. EIR.
Charge and Cost
Takaful insurance is optional for this loan. There is a 1% p.a penalty for any late repayment. Standard 0.5% Stamp Duty is applicable. Early settlement for the loan with permissible with settlement fees based on pelarasan ibra “Rebate” calculation.
Eligibility
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.
Repayment
Repayment for the loan is to be done via Direct Salary Deduction , or Biro Angkasa program
Repayment table
MBSB Personal Loan repayment table
Pros
- Very high financing amount at RM 300,000. Also dependent on factors such as borrower’s income
Cons
- Limited to selected private companies
MBSB Mumtaz-i Public
| MBSB Mumtaz-i for Public Sector |
|---|
| Interest at ECOF-i – 2.0% which is 3.66% p.a flat rate for around 10 years |
| Maximum RM 250,00 Financing available |
| Maximum 10 years repayment |
| Government servants only |
MBSB Mumtaz-i is a personal loan that is catered for borrowers from Public servant which consists of selected permanent GCLS, and Government servants. This personal loan is Shariah complaint with no requirements for guarantor and collateral. One can loan a maximum of RM 250,000 for Mumtaz-i. The interest rates of this loan is much lower as repayment is done via salary deduction schemes such as Biro Angkasa and Auto Salary Deduction.
This package offers one of the lowest interest rates for MBSB Personal loans.
Charge and Cost
Takaful is optional with this loan.
Eligibility
MBSB Mumtaz-i is only available for public servants only. This loan is available for anyone from 19 years old until 60 years no exceeding retirement age.
MBSB Afdal-i
| MBSB Mumtaz-i for Public Sector |
|---|
| Interest at ECOF-i + 1.0% which is 4.40% p.a flat rate for around 10 years |
| Maximum RM 400,00 Financing available |
| Maximum 10 years repayment |
| Government Contract servants only |
MBSB Afdal-i is offered to contractual Government staffs and selected GLCs. This loan offers as high as RM 400,000 financing. Repayment of the loan can be done with Biro Angkasa or Salary deduction
Documents needed
Employed
- Copy of MyKad ( Back and Front)
- Most recent 3 months salary statement
- Most recent 3 months bank account statements
- Most recent BE form or EA form or EPF statements
- Employment confirmation letter
Self Employed
- Copy of MyKad (Back and front)
- Business Registratio Forms
- Most recent B form and LHDN receipt
- Most recent 6 months bank statements
Things you should know about MBSB
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.