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  • Home Loan BYTES FROM OUR KITCHEN

    Public Islamic Bank Home Loan

    Public Bank offers a range of home loan schemes to its customers who are looking to purchase their dream home. Working upon the principles of Islamic banking, the schemes are based on Musharakah Mutanaqisah and they come with variable profit rates. You can choose between the semi-flexible and fully-flexible option of payment. Following are the home loan schemes offered by the Public Islamic Bank:

    Interest/Profit Rates

    The profit rate depends on the current Base Rate. With respect from 27 July 2016, the Base Rate or (BR) for individuals is 3.77% p.a.

    Base Financing Rate (BFR) for non-individuals is 6.97% p.a.

    Fees & Charges

    A customer is required to pay the following fees and charges if he/she obtains the home loan through any of the bank’s schemes:

    Public Islamic Bank Home Financing Fees and Charges
    Processing Fee Up to RM30,000= RM53 From RM30,001 to 100,000= RM106 Above RM100,000= RM212
    Early Settlement Fee As per the bank’s discretion
    Late Penalty Fee 1% of the outstanding amount
    Redemption Letter Charges RM53 per request
    Letter for EPF Withdrawal Charges RM21.20 per request

    Eligibility Criteria

    Nationality Criterion Malaysian citizens
    Age Criteria Maximum age: 70 years (depending on the plan)
    Income Criteria As per the bank’s discretion

    Documents Required

    • NRIC/Identity Card
    • Business Registration/Form 24 and 49
    • A copy of individual title deed
    • A copy of sale and purchase or a copy of the booking receipt or a letter of offer by the builder or developer
    • Valuation Report for the property (only for completed properties)

    Income Related Documents For Salaried Applicants:

    • A copy of the latest bank statements (for 6 months)
    • A copy of the latest salary statements (for 3 consecutive months)
    • A copy of the latest commission statements (for 6 consecutive months)
    • A copy of the latest EPF statements (with a detailed transaction history)
    • A copy of the latest EA statement
    • A letter of confirmation from the employer and remuneration from the employer

    Income Related Documents For Self-employed Applicants:

    • Latest tax returns and tax receipts (for 1 year)
    • Latest current/savings account statements or passbook (for 6 months)

    How To Apply

    Offline Application: An applicant needs to visit the nearest branch of the Public Islamic Bank and collect the application form for the home loan. The duly-filled form along with all the required documents must be submitted to the customer service agents at the bank.

    Online Application: Applicants can find the application form for the Public Islamic Bank Home Loan on the official website of the bank. On filling the name and contact details, the application can be submitted through the website. The bank representatives will guide a customer on further document submission and other procedures required to complete the application process.

    Types Of Public Islamic Bank Home Financing

    • Home Equity Financing-i: The scheme offers home financing as well as refinancing up to the tenure of 35 years to its customers. The Musharakah Mutanaqisah or diminishing partnership Shariah concept is applied on this financial product. Customer’s house is kept as collateral in this scheme. The plan provides government incentives on its stamp duty charges.
    • ABBA House Financing-i: This home financing scheme is based on Shariah concept of Bai Bithaman Ajil that allows a customer to finance their properties with the bank on monthly instalment basis and protects him/her from any changes in the Base Rate. The scheme also comes with a redraw facility.
    • HomeSave Financing-i: This facility allows linking of the home financing account to the current account of the customer so that at the time of profit calculation, they can also save on the profit rate. A customer can withdraw their funds at any time through this scheme.

    Features & Benefits

    • The Public Bank Islamic Home Loan schemes work under the concept of Musharakah Mutaniqisah or alternatively Bai Bithaman Ajil.
    • The home loans offered by the bank come with a competitive margin of finance and convenient profit rates.
    • A customer can choose between various loan tenures for different schemes.
    • Customers can also withdraw funds at any point of time.
    • A customer can make the monthly instalment payments via multiple channels such as the ATM, PBB/PIBB branches, and PBe.
    • For the HomeSave Financing-i account, customers have the liberty to choose the amount of deposit they want to make into their current account.

    Public Islamic Bank Home Loan Refinance

    If customers are looking for a refinancing facility over their already existing home financing facility, Home Equity Financing-i can be considered. They can use this refinancing facility for renovation and refurbishment of the house or use the amount to meet any emergency expense that may crop-up.

    Contact Number

    The bank can be reached on the following hotline number: 1-800-22-5555 if a customer needs to solve any doubt or queries regarding the schemes presented by the bank.

    FAQ's

    Q. How the late payment charges are calculated after the maturity of a home loan?

    A. The late payment charges of the home loan is calculated with the following formula after its maturity :

    Outstanding Balance X AFR X No. of Overdue Day(s)/ 365.

    Q. What are combined rates?

    A. Combined rates comprise of two elements: ta’widh and gharamah. Ta’widh indicates to the amount that may be compensated to the bank based on the actual loss incurred due to default while gharamah refers to the penalty charged on the defaulters over and above the ta’widh.

    Q. Do I need a guarantor or collateral to acquire the loan facility?

    A. A guarantor or collateral needs to be presented only if it is requested by the bank.

    Q. What is the financing tenure for the home loan schemes?

    A. The financing tenure offered for these home loan schemes reaches up to 35 years.

    Q. Am I eligible to withdraw funds any time from my account?

    A. Yes, the schemes like HomeSave Financing- i provides the facility of withdrawing any amount any time. Customers can also transfer a deposit of any amount in the current account-i.

    Q. Is there any setup fee applicable for HomeSave-i financing account?

    A. A one-off payment fee of RM212 is charged as the setup fee for the HomeSave—financing account.

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