CCRIS

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Central Credit Reference Information System (CCRIS)

If you are a borrower, and if you have default in any loan repayments, CCRIS will have the records and you can be blacklisted if you do not handle your repayment properly.

Bank Negara sets up Central Credit Reference Information System (CCRIS) to supervise financial institutions in order to ensure that the financial system of the country would be sound and stable.

As such, the Bank promotes prudent credit policies and professionalism among the financial institutions, including the adoption of best business practices in credit risk management. One way of doing this is by providing CCRIS to the financial institutions so that they can make faster and better informed lending decisions.

The information reported to the Credit Bureau is housed in a computerised database system known as the Central Credit Reference Information System (CCRIS). At present, the database system contains credit information of all borrowers in Malaysia.

CCRIS automatically processes the credit data received from the financial institutions and synthesises the information into credit reports, which can be made available to the financial institutions upon request.

CCRIS is a system that collects credit information on borrowers from financial institutions and supplies the information back to them. This is one of the sources of information used by financial institutions to help them establish a view of the credit histories of potential or current borrowers. However, it is not a blacklist system as perceived by some people.

The Credit Bureau is established by Bank Negara Malaysia under the Central Bank of Malaysia Act 2009 to administer CCRIS. Everything handled by CCRIS is regulated and monitored closely by Bank Negara.

We as borrowers can request for credit information for the purpose of verifying the accuracy of information reported in the credit report. However, if a person unlawfully accesses a credit report, the person can be subject to severe penalties under the Central Bank of Malaysia Act 2009.

When you apply for a loan, CCRIS provides valuable details to the bank such as:

  • Existing personal credit facilities of a customer, such as type of facility, and ownership of the credit facilities;
  • Total financial commitment, which includes the balance outstanding and the total limit for each of the credit facilities;
  • Conduct of each credit facility for the past 12 months, including legal status;
  • Other relevant information such as Date of Information Update, Frequency of Payment and Type of Collateral.

Please note that CCRIS is used by the bank as a measurement tool for loan decision making as the existing track records indicates the risks a bank may face in the future if they approve the new application. However it is not the only tool used by banks to evaluate credit worthiness, as there are many other risk-mitigation criteria the banks can adopt, such as:

  • Reduced Margin of Financing
  • Higher Financing Rates
  • Good Potential for Higher Capital Appreciation for the Property
  • Strong Debt Servicing Ratio (Repayment Capability)
  • Additional Collaterals / Guarantee / Joint Applicant
  • Good Conduct of existing Credit Facilities with own bank (e.g. Credit Cards, other loans)

Credit Information Held by the Credit Bureau

The Credit Bureau of Bank Negara Malaysia collects only credit information on individuals, businesses (sole proprietors and partnerships), companies, and Government entities borrowers. The credit information collected by the Credit Bureau is sourced by the participating financial institutions in Malaysia.

These financial institutions include all licensed Commercial banks, Islamic banks, Investment banks and several other financial institutions. In addition, reference information on the particulars of borrowers is sourced from the National Registration Department (Jabatan Pendaftaran Negara) and the Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia) for purposes of verification against the particulars provided by the financial institutions. The data is updated by the data providers on a regular basis.

 

 

 

ASB Loan

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What is Amanah Saham Bumiputera?

Amanah Saham Bumiputera(ASB) is an attractive unit trust fund for Malaysian Bumiputeras between the ages of 18 and 60 years old.

A brief history: ASB was launched by Amanah Saham Nasional Berhad (ASNB) on 2nd January 1990 for all Bumiputeras as an alternative savings vehicle for them. This will generate long term, consistent and competitive returns for investors.

ASB was designed as a fixed price equity income fund where the price per unit of the fund is fixed at RM1.00 with no sales charges and no fees for redemption of units. Investors shall input a limit up to RM200,000.

Investors will enjoy capital gains that are retained in the ASB account which is allowed to cause the total amount in the account to exceed RM200,000. Therefore investors are free to decide the amount to invest at, and can add funds.

Dividend is distributed on a yearly basis but computed monthly based on the minimum amount of the months. Investors will also be assured capital guaranteed whereby historically, ASB has never given returns below 8.5%p.a.

ASB loan

ASB loans are basic term loans, and interest charged on ASB loans will be calculated using the reducing balance method (similar to those used by Housing Loans and Fixed Deposits). Most ASB loans today use floating interest rates, so interest rates will change according to BLR.

Where to apply for ASB loan?

Investors can walk in to:

  • Maybank
  • RHB
  • CIMB
  • Affin Bank

Banks provide a min loan amount  of RM10,000 and max loan amount up to RM400,000 per borrower, at any one time including the balance outstanding of the existing ASB loans (if any), or up to the maximum investment amount allowed by ASNB, whichever lower

Here is an example of the margin of advance for loan amount up to RM200,000:

  • Up to 100% of nominal value of ASB units
  • Up to 105%, inclusive of the GASBRTA

For loan amount above RM200,000, at any one time:

  • Up to 95% of nominal value of ASB units
  • Up to 100%, inclusive of the GASBRTA

Investors will have the option to take up the loan up to 25 years or up to age 60, whichever is earlier. Below is an example of the loan pricing provided by banks:

Loan below 30,000

  • BLR – 1.35 % (for 1st 3 years)
  • BLR – 1.30 % (thereafter)

Loan RM30,000 & above

  • BLR – 1.65% (throughout loan tenure)
  • View the monthly instalment repayment schedule

What documents are required for loan application?

To apply for ASB loan, investors must submit some basic documents for approval:

  • Application form
  • Photocopy of Identity Card
  • Photocopy of latest 3 months pay slip/other proof of income e.g : Bank account statement
  • Photocopy of ASB Passbook (for existing ASB unit holder customers)

Self-Employed / Own or Partnership Professional Practices:

  • Business Registration (Form A / B for Sole Proprietorship / Partnership); Business License (Form D), Current & Valid professional practice certificate issued by relevant competent body (for Professional Practices); OR
  • Trading License (for East Malaysia); OR
  • Local Council License; OR
  • Borang 24 and Borang 49 (for Sdn Bhd); AND
  • Latest six (6) months Personal or Company’s Bank Statement; OR
  • Latest Borang B / BE (validated payment receipt of payment to LHDN)

Commission Earners:

  • Latest six (6) months salary slip/commission statement; AND
  • Latest six (6) months crediting bank statements; OR
  • Latest Borang BE (validated payment receipt of payment to LHDN);

*NOTE: A Bank may require up to 6 months of income documents if the income comprise of variable components (Overtime, Allowances, Commission & etc).

What about repayment option?

For easy repayment, investors are given convenient options such as:

  • Monthly repayment option
  • Variable Standing Instruction (VSI)
  • ASB Income Distribution & Bonus Earned
  • Automatically credited into the respective ASB unit holder’s account

What about early Repayment?

Depending on the bank terms for full repayment of the outstanding ASB Loan made within the first 3 years from the date of loan disbursement, an exit fee based on the difference between the ASB Board rate and the promotion/special rate is chargeable.

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Socso Guide Malaysia

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Social Security Organization or also known as SOCSO is an organization that was established in 1971 under the Ministry of Human Resources. The Ministry of Human Resources was previously known as Ministry of Labour. The objective of this establishment is to provide social security protections to all workers and employees working in Malaysia.

SOCSO Functions

The SOCSO functions are as the following:

  • Registering employers and employees
  • Contribution collection from employers and employees
  • Payment of benefits to the workers or their dependents if unfortunate tragedy strikes
  • Provision of vocational and physical rehabilitation benefits
  • Promoting awareness on occupational safety and health

Employer

There are 2 different types of employers. They are known as principal employer and immediate employer. Principal employer refers to an employer who has directly employed an employee to work for him or her. The principal employer is responsible for the wages payment and all the service matters related to that employee. An immediate employer refers to an employer who works for a principal employer. This immediate employer will then undertake some of the work of the principal employer by using a sub-contract. The immediate employer also has direct control over the employees employed by him or her. Both principal and immediate employers that employ one or more than one employee have to register and contribute to SOCSO for all the employees stated under the Employee’s Social Security Act 1969 on a monthly basis. Furthermore, the principal employer is also liable to make sure that all the employees employed by the immediate employer are registered and they are paid with their monthly contributions. The principal employer will be liable if he or she fails to do so.

Employee

An employee is defined as an individual who has been employed by an employer either under apprenticeship or a contract of service as stated under the Act. Employees that are earning RM3000 or lesser have to contribute to SOCSO and employees that are earning more than RM3000 have the option to be covered under the act if they have not registered or contribute to SOCSO. However, there is also a principle known as Once In, Always In. This principle is created employees that were previously registered with SOCSO and is currently earning more than RM3000. In this principle, these employees have to continue to contribute to SOCSO under the First Schedule of the Act. After an employee is eligible under the Act, he or she will always to eligible for the coverage regardless of his or her next monthly wage amount. All employees that are eligible for SOCSO have to register and contribute to SOCSO without fail.

Wages Definition

Wages are defined as all payments paid to the employee based on an hourly rate, daily rate, weekly rate, piece rate or task rate. Payments by an employer to any statutory fund on the behalf of employees, mileage claims, gratuity payments or payments for retrenchment or dismissal and annual bonus are not defined as wages in this context.

The wages include payments such as:

  • Salary
  • Overtime payments
  • Service charge
  • Commissions
  • Payments for leave, annual leave, maternity, rest day, public holidays and others
  • Allowances, incentives, food, cost of living, housing, shifts and others

However, there is a certain group of employees that are not covered under SOCSO. The group comprises of government employees, domestic servants, self-employed persons, foreign workers, business owners and spouses of partnership or sole-proprietorship.

Benefits of SOCSO

SOCSO was incorporated with the objective to provide assistance financial and medical assistance to employees that have their capabilities reduced as a result of accidents or diseases. SOCSO also aims to provide assistance to the employees’ dependents in the form of pensions if the employee dies. The benefits under this scheme are divided into 2 parts known as Employment Injury Scheme and Invalidity Pension Scheme.

The Employment Injury Scheme provides protection and coverage for employees that suffer from employment injury. This include medical benefits, temporary disablement benefit, permanent disablement benefits, constant attendance allowance, rehabilitation benefit, return to work programme, dependent benefit, funeral benefits and education benefits. It is also important to understand that the employees might still be covered if they stopped contributing to SOCSO. However, the said employee has to fulfil certain conditions. This is a fact that has gone unnoticed by many people.

The Invalidity Pension Scheme provides coverage for employees that experienced invalidity or death due to any causes that are not related to their employment. Invalidity is measured by the inability of that employee to achieve one-third of the earnings of a sound insured person. The inability may be just temporary or forever. The benefits include invalidity pension, invalidity grant, survivors pension, funeral benefits, facilities for physical rehabilitation and dialysis and education benefits. The survivors pension is also important as many people will assume that the pension will stop after the employee has passed away. However, this is not the case as the dependent family members can also apply for the pension to be transferred to them through the survivors pension scheme.

Another benefit of SOCSO is the privilege to get free health check-ups. SOCSO has issued free health check vouchers to 2.2 million eligible Malaysian candidates. However, a staggering 1.7 million of them declined the initiative. Although it takes time and effort to go through the entire process, employees are encouraged to take some time off work to make use of this free service.

What Are You Expected To Contribute?

There are two types of categories for SOCSO contribution. The first category is known as Employment Injury and Invalidity Schemes and the second category is known as Employment Injury Scheme Only. Under the Employment Injury and Invalidity Schemes, all of the employees must be below the age of 60 years old and only 0.5% of the employee’s monthly wage is to be extracted out for SOCSO contribution. If the figure is higher than that, the related parties should report to relevant authorities. Under the Employment Injury Scheme Only, employees can be 60 years old and above and still currently work. It is also for employees above the age of 55 years old that has made their first SOCSO contribution. In this category, the insured person will receive invalidity pension if they are working and earning less than one-third of a monthly salary before invalidity happens. The employer has to bear the contribution costs at 1.25% of the monthly wages to SOCSO.

Registering For SOCSO

In order to register for SOCSO, there are two forms for the employer and the employee to fill in respectively. The employer is required to fill in the Form 1 Employer Registration Form while the employee is required to fill in the Form 2 Employee Registration Form. After that, SOCSO will issue an employers code number that can be used in all correspondence with the related company.

For more information about SOCSO, kindly visit Pertubuhan Keselamatan Social (PERKESO) headquarters at Menara PERKESO at Jalan Ampang, Kuala Lumpur or visit PERKESO’s official website. Alternatively, you can also contact them through their customer service contact number. The operating hours are from Monday to Friday 8AM to 5.15PM. Lastly, do know that it is an offence if your employer fails to make contributions to SOCSO on your behalf.