Personal loan is a type of unsecured loan that is offered to a customer so that they can meet their personal financial requirements. The amount can be used for buying a vehicle, taking a vacation, for meeting the wedding expenses or to meet the medical expenses. I.O.U. Personal Loan is an unsecured loan which is calculated on a flat rate basis offered by Hong Leong Bank. Hong Leong Personal Loan starts from RM5,000 and can go up to RM250,000 the tenure of the loan ranges from 24 – 84 months depending on the customer's affordability.
Eligibility criteria for taking I.O.U. Personal Loan
I.O.U. Personal Loan can be taken by:
- Malaysian citizen only.
- Citizen must be aged between 21 to 60 years.
- Citizen must have a minimum annual income of RM24,000.
Features of I.O.U. Personal Loan
The features of I.O.U. Personal Loan are as follows:
- The minimum loan amount offered is RM5,000 and the maximum loan amount offered is RM250,000.
- The loan tenure ranges from 2 years to 7 years.
- The monthly instalments payments can be made via standing instructions from your bank, internet banking, ATM transfer, cash and cheque deposit machines and by making payment at the nearest branch.
- Guarantor or a collateral is not required.
- You can keep a track of your I.O.U. repayments online with the annual e-statements that will be generated.
Benefits of I.O.U. Personal Loan
The benefits of the I.O.U. Personal Loan are as follows:
- Borrower can at any time decide to settle the account earlier by giving a full 3 month prior written notice to the bank or can also pay 3 months interest on the amount redeemed.
- There is no major risk as the interest rate is fixed and there will be no fluctuation in the monthly instalment.
- Your personal loan will be released within 60 minutes.
- You will get 20% cash back for making prompt repayments.
- Approval and disbursement process is fast.
- You can make use of the Hong Leong Connect and set up the standing instruction to make the monthly payments easier.
I.O.U. Personal Loan Interest Rates
The charges and interest rate offered are as follows:
- The prescribed rate of interest ranges from 7% per annum to 13.5% per annum.
- The effective rate of interest ranges from 12.38% to 24.82% per annum depending on the loan tenure.
- Stamp duty charges of 0.5% of the loan amount is applicable for each loan.
- Nominal fee of RM2.12 will be charged for every interbank transaction.
- Late payment fee of 1% per annum will be charged on the amount in arrears.
Documents required for I.O.U. Personal Loan
You are required to submit the following documents along with your I.O.U. Personal Loan application form:
- Copy of MyKad
- Latest EPF statement
- Bank statement that has your full name and account number
If there is any need for further clarification, you can drop in your name, mobile number and your email id in the Hong Leong bank website and choose a time of your convenience and the bank executive will call you right back. You can also make use of the online calculator that is provided in the main bank website and determine how much monthly instalment you will be paying towards your personal loan.