Credit Management – FIN 368 End Financing Loan Present by : BM1195E 1) Faris Aiman 2) Athira Adriana 3) Muhammad Fayyadh 4) Muhammad Asyrof 5) Muhammad Iqbal End Financing Loan A long-term loan used to pay off a short term construction loan or other form of interim financing. Although an end loan can have interest-only or other features that delay the repayment of principal, at some point, an end loan begins to amortize. Part of a combination or construction loan. Which allows a borrower to deal with only one lender, file only with one credit application and pay only one set of loan settlement costs. Characteristics Loan interest rate Loan APR vs TAR Lengths of loan repayment periods Secured Loan loans vs unsecured loans payment protection insurance Advantages Low monthly repayments Changing mortgage to raise extra funds Can be used for any purpose as long as it is legal. Disadvantages Interest rates on secured loans will be higher than for a mortgage. Need to pay secured loans each month. END FINANCING (CIMB & Maybank ISLAMIC) Fee & charges Fee amount Set up free Some scheme: RM200 Monthly service charges Some scheme: RM10 Late payment fee 1% p.a. of unsettled amount Stamp duty charges Stamp Duty Act 1949 Processing fee RM212 ( waived for PR1MA) Eligibility Criteria Nationality Malaysian citizen Age Minimum: 18 years old Income As per bank’s consideration documentation Salaried applicant Self- employed Applicant Additional Documents (PR1MA scheme) Copy of NRIC Copy of NRIC Valid Offer To Purchase letter from Perbadanan PR1MA Latest 3 month’s salary slips Latest 3 month salary slips Property purchase price: RM100,000-RM400,000 for SPEF scheme EPF Statement (last 2 years) EPF Statement (last 2 years) Sales & Purchase Agreement/ booking receipt from developer Sales & Purchase Agreement/ booking receipt from developer Business registration A&D Last 3 month’s bank statement Types of CIMB Islamic Home Financing Variable Home/ Business Premises Financingi Term Financing-i Flexi Home/ Business Premises Financing-i - Applicable for under construction and completed both for commercial and residential use. – 20% discount on stamp duty for customers when applying new financing facility. - Customer shifting: conventional to Islamic, waiver of 100% stamp duty is offered. - - - for the purchase of residential vacant land. Ceiling profit rate: 10.75 p.a. - Shariah based scheme utilised for under construction properties. Both residential & business. Customers can withdraw from Special Mudharabah Investment Account via cheque or ATM. Vacant Land Flexi Smart-i BizFlexi Smart-i HomeFlexi Smart-i Variable Home Financing (PR1MA) Prepayment facility: shortening financial tenure so customer can pay loan faster. - - - - Applicable for widerange of properties from business to residential. No processing, maintenance fee is charged to customer. - - High margin on financing. Customer get 20% discount on stamp duty for new financing. Waiver of 100% of stamp duty offered for loans converted from conventional to Islamic loan. - Facilitates the margin of financing up to 100% and 5% financing for stamp duty, GMTP, legal fees. Processing fee waived and utilised for properties located in Malaysia under PR1MA programme. Features & Benefits •The CIMB Islamic Home Financing schemes come with competitive profit rates. •The margin of financing:100% for residential properties and •90% (plus 5% legal/valuation/GMTP) for business properties. •Financial tenures of up to 35 years or until 70 years of the applicant’s age are offered for different schemes under CIMB Islamic Home Loan. •GMTP coverage is offered to the customers and financing 5% to cover the GMTP charges. How To Apply The CIMB Islamic home loan application process can be completed by the following ways: Offline Application: Applicants can visit the nearest branch of the CIMB Islamic and collect the application form for the home loan. They need to fill the form and attach all required documents to it before submitting it to the customer service agents at the bank. Online Application: An interested candidate can find the application form for the CIMB Islamic Home Loan on the official website of the bank. On completing the name and contact details column, the application can be submitted through the website. Submission of documents and any additional procedures must be carried out as informed by the bank or on the website. Fee Amount Stamp Duty Letter of Offer : RM10 Principal Document : RM5 Processing Fee RM50 – RM200 Excess Payment Withdrawal RM25 EPF Withdrawal Letter RM10 per request Cancellation Fee RM930 – RM1100 Transaction/Brokerage Fee Waived Redemption Letter RM50 Eligibility Criteria Nationality Malaysian and Non-Malaysia Age Minimum : 18 years old Maximum : 70 years old Income As per the bank’s discretion Documentation Salaried Applicants Self-Employed Applicants Property Documents Latest 3 months salary slips Certified/audited financial statements Copy of Sales & Purchase Consecutive 6 months of commission statement Statement of commission issued by the company Copy of Individual Title deed Latest EPF statements EPF statements Property Valuation Report Last 6 consecutive months bank statement 6 months bank statements Confirmation letter from the employer Tax payment receipt Types of Maybank Islamic Home Loan Commodity Murabahah Home Financing-i Foreign Currency Offshore Property Financing-i Commodity Murabahah Term Financing-I - Based on Murabahah principle - Provides home financing facility through trading of Shariah compliant commodities - Minimum property value RM75000, minimum financing amount RM10000 - Home financing scheme acquire your dream property in foreign country by using foreign currency - Malaysian citizen or a permanent resident can apply - Financing facility allows you to acquire completed/under construction properties - Based on Shariah concept of Murabahah - Any individual can apply Features & Benefits • Enjoy periodic payments through monthly, quarterly or yearly basis • The loan packages are available with flexible repayment tenures of up to 35 years or until the borrower attains the age of 70 years by the end of the financing tenure, hichever is earlier • There are no early settlement charges/exit penalty • You can get high finance margin of up to 80% • You can get refinance facility and save on profit charges • You can enjoy the flexibility of converting the conventional loan to Islamic financing How To Apply Offline Application: You can visit the nearest Maybank branch and collect the application form for the home loan. You must submit the duly-filled form along with the necessary documents to the customer service desk Online Application: You can download the application form from the official website of the bank. You must submit the duly-filled online form along with the supporting documents to process your home loan application
