RHB is one of the leading banking institutions in Malaysia and is currently the fourth largest fully integrated financial services group operating in the country. RHB provides banking products and solutions to consumer banking, corporate banking, investment banking, and client coverage among other services. The loan products it offers, specifically the personal loans and overdraft facilities are a popular and sought-after choice largely due to the ease with which one can apply for the loans and the competitive rates it offers.
RHB offers 3 main types of personal loans which are as follows
|Category||Minimum loan amount||Maximum loan amount||Interest rate||EIR||Maximum available tenure|
|Tier 1||RM2,000||RM10,000||13.45% p.a.||24% p.a.||5 years|
|Tier 1||RM11,000||RM15,000||13.45% p.a.||24% p.a.||7 years|
|Tier 2||RM16,000||RM50,000||11.66% p.a.||21% p.a.||7 years|
|Tier 3||RM51,000||RM99,000||9.91% p.a.||18% p.a.||7 years|
|Tier 4||RM100,000||RM150,000||8.18% p.a.||15% p.a.||7 years|
The interest rate charged for the first 4 years is BR + 1.55% p.a. with an EIR of 5.20% p.a. For subsequent years, the interest rate charged is BR + 1.15% p.a. with an EIR of 4.80% p.a.
Following are the features and benefits of RHB Personal loans:
|Stamp Duty fee||As per Stamp Duties Act of 1949|
|Disbursement fee||No fee|
|Processing fee||No fee|
|Late payment fee||1% p.a. on arrears charged on daily basis until arrears have been fully repaid|
|Early settlement fee (personal loan)||RM100 or 1% of outstanding loan amount, whichever is higher if loan is settled within lock-in period|
|Endorsement fee (ASB/ASB2 financing)||RM53|
|Early settlement fee (ASB/ASB2 financing)||Fee based on the difference between the Board Rate of the ASB/ASB 2 financing and the ASB/ASB2 offer rate is charged|
Commission earning applicants:
Borrowers can apply for the loan by downloading the application form which is available on the RBH website. Borrowers must submit the duly filled application form along with the required supporting documents at the nearest RHB branch.
Borrowers can also visit the nearest RHB branch directly and initiate the application process. Once the form has been submitted, borrowers can track the status of their applications using the RBH Bank internet banking facilities.
Q. How is the interest rate charged on the loans?
A. The interest rate charged on the loans is based on the Rule 78 method where the initial instalments paid will comprise a larger percentage of the interest of the loan and the latter half of the instalments will comprise a larger percentage of the principal loan amount.
Q. Is there a lock-in period on the loan?
A. Yes. For the Personal loan, the lock-in period is 6 months whereas the ASB/ASB2 Financing has a lock-in period of 2 years.
Q. Will loans settled after the lock-in period but before the maturity of the tenure attract any penalties?
A. No. Once the lock-in period has been completed, settlement of loans will not attract any early settlement charges.
Q. How is the exit fee on ASB/ASB2 Financing computed?
A. The fee is computed by taking into account the difference between the ASB/ASB2 board rate and the ASB/ASB2 offer rate. The following formula is used:
Exit fee = [(a-b)/100] X c X (d/365) where a is the board rate, b is the offer rate, c is the original financing amount and d is the number of days with the bank on the loan agreement.
Q. Is insurance cover mandatory for the loan?
A. No. The loan does not require a compulsory insurance cover but RHB strongly encourages borrowers to acquire one.