FAQs

The Association of Banks in Malaysia

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FAQs

Please click to expand list of Frequently Asked Questions:

Loans and Lending

Base Lending Rate Loans

What would be the best option for me? ? lower monthly reductions or shortening of payment tenure?
  • The option is entirely yours as either way you will save.
  • If your cash position is healthy, it may be best to maintain the monthly installments and shorten payment tenure.
When will I get to enjoy the lower monthly reductions or shorter payment tenure?
Will there be absolute savings for me with the recent BLR reductions, with no hidden cost?
Can I choose to maintain my current monthly installments for BLR loans instead of my bank automatically reducing my monthly payments?

How to apply for a SME loan

Why was my loans application rejected despite being transparent with all my documents?
  • There are many factors that could result in this. While transparency is paramount, the business’s sustainability, cash flow, income generation and other risk factor also needs to be considered closely by prospective lenders.
  • The bank has an obligation to clearly state why your loan application was rejected so that you may take appropriate steps to mitigate for these factors.
I hear that banks are cutting back on lending due to the slowing economic conditions. Is this true?

Prepayment Charges On Housing Loan

When do banks charge penalty for full prepayments or early loan settlement?
Usually, penalty charges are levied for loans which have been fully settled within two to five years from the date of the loan’s commencement. This period would however differ from bank to bank.
How do banks calculate penalty charges for full prepayment or early loan settlement?
Why do banks charge penalty for prepayments?
For full prepayment of loan, banks require the customer to give one month notice. After serving the necessary notice, will I still be subjected to penalty interest?
Which type of prepayment is more beneficial, principal reduction or advance payment?
What is the difference between principal loan reduction and advance payment?
Will the prepayment be treated as principal loan reduction or as an advance payment?

ABM Connect | Toll-free on 1-300-88-9980

ABMConnect provides an avenue for consumers to clarify any doubts and verify information on conventional banking issues.

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The Association of Banks in Malaysia (ABM) was formed in November 1973. Our membership is currently made up of the 27 commercial banks operating in Malaysia.

Since its inception, ABM has been actively involved in various initiatives to promote and strengthen the commercial banking industry to become more resilient, effective and efficient.

Tel No. : +603-2078 8041
Fax No. : +603-2078 8004
ABMConnect : 1300-88-9980

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