Bank Rakyat Home Loan is one of the popular financial services offered by the bank to its consumers across Malaysia. This loan is arranged under Islamic principles by following Murabahah and Tawarruq. Basically, the bank buys the property from the seller (the loan applicant will buy on behalf of the bank) and sells it to the applicant at a price that is the sum of buying price and profit. The applicant agrees to pay this money in installments.
You’re probably eligible for an Bank Rakyat Home Loan if you are
At least 18 years old
Less than 65 years old
Salaried / Self-employed
with regular income
Earn more than the minimum
Your Bank Rakyat Home Loan amount eligibility is based on these factors
Instalment limited to about 50%
of monthly income
Loan capped @ Up to 95 % including MRTT
Instalments of other loans lower
Increase your eligible Bank Rakyat Home Loan amount by these steps
Make your spouse a co-applicant,
and her income will add
to your eligibility
Choose longer tenure loan up to 35 years
Alternatively add your parents
Documentation needed to apply for an BANK RAKYAT Bank Home Loan
- 1. A copy of the Identification Card (MyKad).
- 2. Copies of the latest 3 months payslips.
- 3. Account / Bank statements of the latest 3 months (salary credited).
- 4. Latest EA Form / EPF statement.
- 5. Documentation for salaried applicants:
- A certified copy of the original valid passport
- Employer Verification Letter (last 12 months)
- 6. Documentation for self-employed applicants:
- Form B submitted to the LHDN / payment receipt
Bank Rakyat Home Loan Interest RatesUpdated on 19 Jan 2017
|Margin of Finance||Up to 95 % including MRTT|
|Guarantor Requirement||Guarantee Required|
The Bank Rakyat is an Islamic cooperative bank based out of Kuala Lumpur, Malaysia. The bank has been operational for more than 60 years now and is among the premier financial institutions in the country. The bank was established after various tie-ups between banks and become a full-fledged Syariah compliant bank in 1993.
Bank Rakyat Home Loan Malaysia
The bank offers home loans to customers so that they can fulfil their dreams of staying at a place of their choice. The home loan, called Manzili Selesa home loan is a capped floating rate product, which means that the profit rate is fluid and changes with central bank declarations. You can benefit from lower rates as and when they are announced, while increase in profit rates has been capped to a certain percentage. This way, you stand to benefit from lower rates but won’t burn a hole in your pocket by a lot when profit rates rise.
The housing loan is offered under Islamic principles of Tawarrup and Murabahah, which ensures that the loan is priced optimally for customers.
Features of Bank Rakyat Home Loan
This is a feature packed home loan product aimed at a wide audience. Primary features here include:
- Capped floating profit rate loan which provides buffer against rate hikes.
- Financing for up to 95% of actual property value.
- Tenure of 35 years maximum to allow for greater flexibility in repayment.
- Floating profit rate capped at 10.60%.
- Financing available irrespective of whether the property is under construction, completed or if the loan amount will be used for refinancing purposes.
- Loan amount is capped at 70% if financing is sought for 3rd or more property purchase/refinancing. Tenure is also reduced in this case to 20 years.
- Flat profit rate of 4.85% id property is under construction.
- Lock in period of 5 years during which loan cannot be prepaid in full.
Bank Rakyat Housing Loan Interest Rates
The bank charges profit rates as follows:
- Amount borrowed: RM 100,000 to RM 199,999, Profit rate estimate: 5.17% p.a.
- Amount borrowed: RM 200,000 to RM 349,999, Profit rate estimate: 4.87% p.a.
- Amount borrowed: RM 350,000 to RM 499,999 Profit rate estimate: 4.67% p.a.
- Amount borrowed: RM 500,000 or above, Profit rate estimate: 4.67% p.a.
Other charges include the following:
- Fee for redemption letter: RM 21.20
- Fee for EPF withdrawal: RM 53.00
- Fee for late payment: 1% p.a.
How to apply for bank Rakyat Home Loan?
The application process for Bank Rakyat home loan is quite simple and can be completed in a short time. You simply need to fill out the required information in the application form and submit supporting documents as requested by the bank.
- Applicants should be over 18 years of age and less than 65 years.
- Applicants who are Malaysian or Singaporean citizens can apply.
- Applicants should be earning at least RM 24,000 p.a.
If you are a private sector or government employee, you need to submit the following supporting documents:
- Last three months’ salary slips
- Latest EPF statement or EA form
- Last 3 months’ bank or account statements
- Identification card (MyKad) copy
If you are a self-employed individual, the following needs to be submitted along with application form:
- Last 3 months’ account or bank statements
- Identification card copy (MyKad)
- Form B given to LHDN or payment receipt
If you are a permanent resident of Malaysia or a Singaporean earning fixed income, the following needs to be submitted:
- Verification letter from employer
- Certified copy of passport
- Last three month’s payslips
- Last three months’ bank or account statements
FAQs on Bank Rakyat Housing Loan
1. Can I apply for the loan as a permanent resident of Malaysia?
Yes, permanent residents are free to apply for Bank Rakyat home loan provided they fulfil other criteria.
2.How do I make the monthly payments?
There are flexible modes of loan repayment including salary deduction, standing instructions on savings or current accounts, postdated cheques or Biro Perkhidmatan Angkasa (BPA) for government employees.
3.What if I make extra payments in a month?
Any additional payments you make on top of your monthly instalment amount will be treated as advance payment on future instalments. This means that the payments will not be included towards principal repayments.
4.Do I have to get any insurance cover for myself or the property?
Yes, insurance is mandatory in case of fire insurance for the property. MRTT insurance is recommended to fulfil your repayment obligations even when you can’t make the payments without burdening your family members.
5.What is the lock in period here?
The lock in period is 5 years, which means that you cannot repay the loan within 5 years.
6.This is my third home purchase through Bank Rakyat home loan. How much financing can I expect?
For applicants buying their 3 property or more, the financing is limited to 70% of the value of the property.
Other Products offered by Bank Rakyat:
Apart from offering Home Loan,Bank Rakyat offers other products and services which include: