Al Rajhi Personal Loan

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Background

Al Rajhi Bank is one of the world largest Islamic bank from Saudi Arabia. This bank reached Malaysian shore on 2006 as part of it’s internationalization effort.

Al Rajhi Personal Financing-i
Profit Rates start from 3.50% p.a. to 8.99% p.a
From RM 5,000 up to RM 150,000 or 5 times monthly salary financing available
Maximum 7 years repayment
No guarantor needed
Fast approval
Minimum of 25 years old and RM 4,500 monthly income

Al Rajhi Personal Financing-i is an unsecured personal loan where no guarantor and collateral is needed which is 100% Shariah compliant. Al Rajhi’s personal loan is based on commodity trading.  The guarantor requirements however do subject to applicant’s credit score.

Al Rajhi personal financing-i profit rates start from 3.50% p.a. to 8.99% p.a. This personal loan offers up to 5 times applicant’s salary or RM 150,000 (the lower amount) financing however this will also depends very much on the person’s credit score. The minimum someone can borrow is RM 5,000.  Borrower will have options up to 7 years repayment. This loan features a speedy application, where applicants will know the application status in 24 hours upon complete submission.

Charges

There are no application and processing fees currently. However there will be a 0.5% stamp duty fees while Takaful insurance would be compulsory for the loan. Takaful Insurance will depends on age and tenure of financing by the applicants.  This loan is subjected to Bursa fees. GST charges are also applicable for the service fees.

Eligibility

Age for age wise, Al Rajhi requires a much high 25 years age for loan application. Applicants should not be over 58 years old at loan tenure. This loan also has a minimum RM 4,500 monthly gross minimum salary for applications which is considered high for Malaysian standards.  Overall, the standards set by Al Rajhi bank is quite high and thus is may be quite hard for average Malaysians to fulfill the loan requirements.

Documents required

  • Copy and photocopy of IC ( Front and back)
  • Most recent 3 months payslip and bank statement

 

Al Rajhi Personal Financing-i repayment table is available below

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Income Tax Guide Malaysia

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Malaysia is known to be a very tax friendly country when compared to other countries with much higher tax rates. The income tax in Malaysia is still considered relatively low and many taxes that are currently found in other countries are not applicable in Malaysia. The highest bracket of income tax in Malaysia that was previously 28% has been cut down to 26% for Malaysian citizens and 27% for non-Malaysian citizens. In addition, other taxes such as estate duties, accumulated earnings tax, annual wealth taxes and federal taxes are not applicable in Malaysia.

Who Is Required To Pay Income Tax?

Any individual that is staying in Malaysia for a period of more than 182 days are automatically regarded as a resident under the Malaysian tax law regardless of their nationality. In contrast, any individual that is staying in Malaysia for less than 182 days are regarded as a non-Malaysian citizen and that individual will be taxed differently. Besides that, there is a third group of individuals that are completely exempted from paying income tax. These are the individuals that is employed to work in Malaysia and stayed here for less than 60 days in a calendar year. The same rule also applies to individuals that are over the age of 55 years old that receive Malaysian pension and to individuals who are receiving interests from banks. Furthermore, expatriates that came to Malaysia under the Malaysia My Second Home Programme are also not required to pay any income tax on their pension or income that is remitted from overseas. Malaysian Government also had an Agreement with several countries on Avoidance of Double Taxation. Apart from these groups, all of the income that is achieved and derived to Malaysia is accountable for tax.

When to Pay For Income Tax?

The tax season in Malaysia rolls around from 1st of March to 30th April. Whenever this tax season comes around, an inevitably sense of worry can be seen amongst the Malaysian public because there are many things and considerations to be taken into account such as financial, legal and technical considerations when an individual is filling in the income tax form at Lembaga Hasil Dalam Negeri (LHDN or Hasil) or through ezHASiL, LDHN official online portal for paying taxes. According to the latest announcement on ezHASiL, any individual who is a new taxpayer or reporting his or her income for the first time with an income equal or more than RM450000 has to visit the nearest LHDNM branch to make an income acknowledgement first. The reason for this procedure is to avoid the possibility of that individual taxpayer making a mistake when entering the amount of his or her income. However, this announcement does not apply to an individual taxpayer that submits the e-Filing using a Tax Agent.

Income Tax Malaysia Rates

Before listing down the income tax rates for different income brackets, there are two keys things to remember first. The firs thing is to remember that tax rates are progressive therefore you will only need to pay the higher rate above the rate on the amount. For example, you will never have less net income after tax when you are earning more. The second thing is to remember that the tax rates are only imposed on chargeable income and not salary or total income. Chargeable income is an income that is calculated after deducting the tax exemptions and tax reliefs. The income tax rates in Malaysia are as the following:

  • Individuals that are earning RM1 to RM5000 chargeable income will be exempted from paying income tax
  • Individuals that are earning RM5001 to RM20000 chargeable income will be imposed with 1% income tax
  • Individuals that are earning RM20001 to RM35000 chargeable income will be imposed with 5% income tax
  • Individuals that are earning RM35001 to RM50000 chargeable income will be imposed with 10% income tax
  • Individuals that are earning RM50001 to RM70000 chargeable income will be imposed with 16% income tax
  • Individuals that are earning RM70001 to RM100000 chargeable income will be imposed with 21% income tax
  • Individuals that are earning RM100001 to RM250000 chargeable income will be imposed with 24% income tax
  • Individuals that are earning RM250001 to RM400000 chargeable income will be imposed with 24.5% income tax
  • Individuals that are earning RM400001 to RM600000 chargeable income will be imposed with 25% income tax
  • Individuals that are earning RM600001 to RM1000000 chargeable income will be imposed with 25% income tax
  • Individuals that are earning more than RM1000000 chargeable income will also be imposed with 25% income tax

The Exact Amount before Filing

For most of the Malaysian citizens, the key amount that you have to earn before there is a need for you to open a file for tax is about RM34001 per year after deducting EPF deductions such as all benefits, allowances, overtime, commissions and bonuses. If you are earning below RM340001 per year, there is no need for you to open a file for tax. However, if you are earning more than RM34001, it is mandatory for you to open a file for tax so that your income tax can be automatically deducted from your income.

Taxable Income

Taxable income refers to the base upon that an income tax system imposes the tax. In general, the Lembaga Hasil Dalam Negeri (LHDN) includes all types of earnings that Malaysian taxpayers have to pay for but these earnings are then reduced by expenses and other deductions. Some of the taxable income are:

  • General Taxable income such as business or profession, employment, dividends, interest but not including bank deposit interest, discounts, rent, royalties, premiums, pensions, annuities and others
  • Taxable benefits that can be converted into cash and are usually given by an employer to an employee known as perquisites such as bill claims, company credit card, loan from company, sponsored club membership, sponsored child tuition fees, company insurance premiums, personal driver, personal guard, personal maid, special staff discounts and gift vouchers
  • Taxable benefits that cannot be converted into cash and are usually given by an employer to an employee known as benefits in kind such as automobiles provided by the company, household furnishing by the company, lodging by the company and electronics purchased by the company

Tax Exemptions List

A full list of the items exempted from income tax are:

  • Leave passage
  • Medical benefit and dental benefit
  • Retirement gratuity
  • Gratuity that are paid by public funds
  • Gratuity that are paid to the contract officer
  • Compensation for loss of employment
  • Pensions
  • Death gratuities
  • Scholarships
  • Cultural performances
  • Royalties
  • Interests
  • Dividends
  • Income that are remitted from countries out of Malaysia
  • Fees or honorarium for providing expert services
  • Income that are derived from research findings
  • Company special service awards
  • Benefits in kind exemptions
  • Travelling allowances
 

HSBC Personal Loan

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HSBC Amanah Personal Financing-i
Offers up to from RM 6,000 to a maximum RM150,000 of personal financing
Monthly payment starting as low as RM134.00
Enjoy a flat rate starting from 10.5% pa 
Length of payment of up to 7 years
Minimum monthly salary of RM 3,000 requirement

HSBC introduces it’s HSBC Amanah Personal Financing-i for those who require funds promptly. The HSBC Amanah Personal Financing-i is a financing facility executed on a fixed monthly installment. It is grounded on the concept of Murabahah that is Sharia compliant which is an agreement of purchase and sale of Shariah compliant commodities concerning cost and profit margin being acknowledged and complied by all parties involved.

This quick, easy and minimal hassle loan facility offers financing amount of RM6,000 to RM150,000. Financing of up to RM150,000 is available for existing customers while RM120,000 is capped for customers that are new to the bank. The HSBC Amanah Personal Financing-i has no requirement for a guarantor nor a collateral and promises fast approval. With a disciplined payment method, total consumption benefit can be increased. Funds can be utilized for just about anything such as family vacations, child’s education, marriage, bill payments, savings for emergency. It is another alternative simple cash financing facility to credit card.

Interest

Financing Amount Fixed Flat Rate Per Annum

RM6,000  –  RM19,500 12.5%

RM20,000 – RM49,500 11.5%

RM50,000 – RM150,000 10.5%

Charges and Fees

There is no processing fees or stamping fees for The HSBC Amanah Personal Financing-i. The flat rate per annum that is determined in the application of Financing Amount is a result of computation of the Financing Amount that excludes the Takaful Contribution.

It takes 3 days for the money to be submitted into your account once it has been approved. Borrower will need to have HSBC account for the cash disbursement.   Monthly payment for this financing can be made after disbursement from an established desposit account to the facility from a standing instruction.

Eligibility

To be eligible for the HSBC Amanah Personal Financing-i, you need to be a Malaysian or possess a Malaysian Permanent Resident status and aged between 21 and 60 years old. HSBC customers who have a current relationship with HSBC or HSBC Amanah will need to have a salary of RM3,000. If not,  a minimum salary of RM5,000 is required for the eligibility. It is good to note that the HSBC Personal Financing-i is only available for individual sole account and not for joint application.

Documentations

Applications for the HSBC Amanah Personal Financing-i can be made by submitting the application form together with the documents stated below:

Salaried

  • Copy of your Mykad
  • Copy of present or previous month’s salary / Copy of a Bank Statement proving salary credit into your account
  • Form BE (full submission to the income tax department with attachment of  payment receipts) / EA/ EPF statement OR copy of appointment letter (if employment is less than 3 months)

 

Self Employed

  • Copy of your Mykad
  • Copy of most recent Form B (full submission to the income tax department with attachment of payment receipts or CPO2) / EPF statement / copy of your audited financial statement / Profit and Loss account
  • Copy of your Business Registration Form

You can find more details on The Monthly Payment Schedule excluding Takaful Contribution here:

Commission earners

  • Copy of your MyKad
  • Copy of most recent 3 months salary / Bank statement when salary is credited
  • Form BE (full submission to the income tax department with attachment of  payment receipts) / EA/ EPF statement

Hsbc Personal Loan Table

Pros

  • Receive quick cash disbursement in your account with HSBC Amanah or HSBC upon confirmation

CONS

  • High effective interest rates at 19% p.a