Loan and Financing


Citibank launched a new overdraft facility called Citibank Ready Credit (CRC). It is a personal overdraft facility without collaterals targeting at working professionals aged between 24 to 55 with an annual income of a minimum RM24,000.

The Citibank Ready Credit is a “pay-as-you-use” overdraft facility with credit line between RM5,000 and RM120,000. Depending on individual profile, the interest rate is between 12 per cent to 18 per cent a year. For comparison credit card interest rate is fixed at a maximum of 18 per cent a year.

With a personalised Visa debit automated teller machine card and cheque book, the product allows access to instant cash and no cash advance fee is imposed.

Below are the benefits of Citibank Ready Credit (CRC)

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property investment

With immediate effect, Bank Negara Malaysia (BNM) reduces the maximum loan-to-value (LTV) ratio to 70% instead of normally as much as 90% from the value of the property.

The limit will be applicable to the third house financing facility taken out by a borrower. However, first and second home buyers are not affected by this new rules. They will continue to be able to obtain financing for their purchases at LTV of 90%

The measure aims to support a stable and sustainable property market, and promote the continued affordability of homes for the general public.

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budget

On Friday 15th October 2010, Prime Minister, Datuk Seri Najib Tun Razak tabled a RM212-billion budget for 2011 centred on four key strategies designed to transform Malaysia into a developed and high-income nation by 2020 with sustainable development, spearheaded by the private sector as well as focus on the well-being of the people.

The following are Budget 2011 highlights for Personal Finance and Investment.

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mortgage rates down

That’s true. There is a new round of price war among banks for consumer loans, with the new mortgage rate going down to as low as base lending rate (BLR) -2.3%. The current BLR rate is 6.3%.

This is a very good news to property investors because they can obtain cheaper loan to buy more properties. With the news that Malaysia properties are booming, there are more reason to buy properties especially medium to high end landed properties.

There was a lots of interest in Malaysia properties priced below RM2mil and less movement among the higher end homes. Many foreigners especially from Singapore keen to invest in Malaysia due to affordability.

The new mortgage rate is now down to as low as BLR-2.2% since end-July.

After a quick check, below are the rates offered by some of banks. I believe other banks also have the same competative rate.

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interest rate

Following Bank Negara decision to raise Overnight Policy Rate (OPR) by 25 basis points to 2.5% last week, some banks in Malaysia start to revise up their Base Lending Rate (BLR) and Base Financing Rate (BFR).

This is the second time in 2010 that Malaysian have to bear the burden of higher interest rate. The first increase was implemented in March 2010.

Maybank, CIMB Bank, Public Bank, RHB Bank and Bank Islam have increased their BLR & BFR by 25 basis point to 6.05% from 5.80% previously. Other bank will follow suit.

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