Public Bank in Malaysia has always been known to have one the most comprehensive product ranges when it comes to housing finance mainly because of the interest rates offered by the bank. There are 2 slabs of interest rate based on the amount of money to be borrowed. So, the minimum loan amount for housing finance from Public Bank is as much as RM 100,000. If you are buying a home and the financial aid from the bank is granted over RM 100,000 but lesser than RM 250,000, then the interest rate is as low as as 4.8%. But it gets better. If its is RM 250,000 and over then you are for a lower interest rate of 4.54%. But the interest rates are not the only things that should make you consider this product. There is more to this product than meets the eye. There are options of flexi loans which offer you more flexibility, when it come to loan repayments. The interest rate is also floating and one of the home loan option has an overdraft facility as well, especially projects under constructions or to aid you to make downpayments.
A home loan from Public Bank can be paid in as much time as 35 years, which is quite comforting for many people who wish to buy a new home.You can also settle the loan repayments earlier to ensure that you are not stuck with the loan when you don’t need to be. A prepayment charge of 2% only is applicable for the same. The loan approval time is reasonably low stated by the bank at 30 days. Also, kindly note that the loan comes with a lock-in period of 3 years. Read on to know more about this loan.
You’re probably eligible for an Public Bank Home Loan if you are
At least 21 years old
Less than 70 years old
Salaried / Self-employed
with regular income
Earn more than the minimum
Your Public Bank Home Loan amount eligibility is based on these factors
Instalment limited to about 50%
of monthly income
Loan capped @ Up to 90% + 10% MRTA
Instalments of other loans lower
Increase your eligible Public Bank 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 Public Bank Home Loan
- 1. Identity Card.
- 2. Copy of Individual Title Deed.
- 3. Documentation for salaried applicants:
- Latest 3 months pay slips or Latest EA Statement
- EPF Statement (latest not more than 1 year)
- Tax Returns / Tax Receipts (latest)
- Employment Letter/Employer Confirmation
- 4. Documentation for self-employed applicants:
- Latest 1 year Tax Returns / Tax Receipts
- Latest 6 months CASA statement @ 20% of average 6 months deposits
Public Bank Home Loan Interest RatesUpdated on 27 Oct 2016
|Margin of Finance||Up to 90% + 10% MRTA|
|Guarantor Requirement||No Guarantee Required|
Public Bank Group is the third largest banking group in Malaysia and as of 2014 had assets totalling over RM 345 Billion. Public Bank offers a wide array of banking products that are innovative and comprehensive and range from personal banking to commercial banking and even provides Islamic Banking. It has over 259 branches in the country and also has a presence in the region with branches in Hong Kong, China, Cambodia, Laos and Sri Lanka as well.
Public Bank Home Loan Malaysia
The home loans offered by Public Bank are designed to provide the customers with flexibility and ease of payment. A home loan is a serious long term commitment and at Public bank, the home loans offered have longer tenures and options of different home financing packages from which a customer can choose from based on their financial needs. Customers can not only benefit from the longer tenures but also save up on interest paid on the loans.
Features of the Public Bank Home Loan
- The loan comes with the option of flexi loans
- The interest rate on the loan is a floating interest rate
- The loan has a tenure of up to 35 years for the 5 Home Loan
- The More Home Loan has an overdraft facility
- The loan has a late payment penalty of 1% of the outstanding amount
- The loan has a processing fee of RM 212
- The fee for early settlement is 2% of the remaining balance
- The loan provides for up to 90% of the finance margin
- The loan application has a time period of 30 days for approval
- The home loan comes with a lock in period of 3 years.
Public Bank Home Loan Interest Rates
The interest rates charged by Public Bank depend on the amount of the loan. If the loan amount borrowed ranges between RM 100000 to Rm 249000 then the interest rate charged on the loan is 4.80% p.a. and if the loan amount is greater than RM 250000 then the interest rate charged is 4.45% p.a.
Types of Home Loans available from Public Bank
Public Bank offers 2 types of home loans to their customers and their salient features are as discussed below
5 Home Plan:
The plan has a three year lock in period and offers two packages namely equal monthly instalment package and a homesave package. The equal monthly instalment package allows the borrowers to manage their finances more efficiently and offers an overdraft facility while the homesave package links the loan amount to the borrower's bank account such that any balance in the current account of the borrower is used to reduce the outstanding balance of the home loan and thus reduce the interest paid on the loan and increase the savings.
The More Plan also offers the same packages which is equal monthly instalment packages and homesave packages. The More Plan allows borrowers to restructure their home loans to meet other expenses such as a child’s education. The plan allows borrowers to pay more in each instalment and the excess amount paid can be withdrawn by the borrower at any time for a minimal cost per withdrawal. With this loan a fire insurance policy is compulsory.
How to apply for Public Bank Home Loans
Applying for a public Bank home loan is a hassle free process. One can do it online at their website or can do it at the Public Bank branch closest to them. Loan applications take 30 days for approval and one should bear in mind there are certain eligibility criteria an applicant needs to fulfil as well as certain documentation that is required for the application to be processed
- The minimum Annual income of the applicant needs to be at least RM 24000.
- The minimum age of the applicant needs to be 21 years as at last birthday and the maximum permissible age for an applicant is 70 years of age as at last birthday
- A person of any nationality residing in Malaysia can apply for the Public Bank Home Loans
- The applicant needs to have the copy of the latest pay slips dating back 3 months
- The applicant needs to have the latest EA statement
- The applicant needs to have the latest EPF statement dating back at least a year
- The copy of the latest Tax returns or tax payment receipts are needed
- If the applicant is employed, then a copy of the employment letter or a confirmation from the employer is required
- 3 months’ worth of current account or savings account statement
- If the applicant is self-employed then the documents needed also include 6 months of current or saving account bank statement and 1 year worth of tax receipts
F.A.Qs on Public Bank Housing Loan
Q) Does the applicant need to take out any insurance policies while taking out a home loan?
A) Yes. For both the 5 Home Loan and More Plan, a fire insurance policy is mandatory whereas an MRTA is optional even though it comes highly recommended.
Q) How does an applicant pay the monthly instalments?
A) An applicant can pay the monthly instalments either by using a cash deposit machine at their closest Public Bank branch or using the Public Bank ATMs. For convenience sake, the payment can also be done online using internet banking facilities, Interbank GIRO transfers or by issuing standing instructions for automatic deductions.
Q) Can a borrower deposit extra money while repaying to reduce principal?
A) Yes. A borrower ca deposit an extra amount on top of the monthly instalments as and when they have the cash to spare. Excess amounts should be notified to the bank to be treated as payment against the loan otherwise extra amounts will be considered as advance payment made on the next instalment. Excess amounts when notified to the bank will reduce the monthly instalments because interest is calculated on the remaining balance of the loan.
Q) Are there any sign up offers available for taking out a home loan from Public Bank?
A) Yes. Borrowers can avail a credit card whose annual fees are waived for the duration of the loan when they take out a home loan from Public Bank.
Other Products offered by Public Bank:
Apart from offering Home Loan,Public Bank offers other products and services which include:
News About Public Bank Home Loan
Public Bank cut the interest rate by 23 points
Public Bank cut its base lending rate by 23 basis point following the reduction in the overnight policy rate by Bank Negara. This cut will bring the Public Bank’s base rate to 3.52% and the base lending rate will be 6.72%. The bank reduced its lending and financing rate to pass the benefits to the customer. This move will positively affect the Malaysian economy and will help it grow steadily amidst the global economic growth. The domestic demand will remain supported by the monetary compliance, stable inflation and healthy financial condition in the domestic economy.
1st August 2016