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Announcement

Alliance Bank Conventional Mortgage Additional Interest Rate on Overdue Instalments/Payment

Dear Valued Customers,

With effect from 1st August 2019, an additional interest rate above the Prescribed Rate (“Additional Interest Rate”) on daily rest on the total balance outstanding of the facility for any overdue instalment/interest payment is chargeable in the following manner:

Housing Loan (“HL”) and/or Term Loan (“TL”)

  1. Additional Interest Rate of 1.50% per annum shall be chargeable on the total balance outstanding when there are arrears in the loan account for three (3) consecutive months during the duration of the facility;
  2. Additional Interest Rate of 2.50% per annum (“Default Rate”) shall be chargeable on the total balance outstanding when three (3) monthly instalments/interest payment are not paid and the account turned into default during the duration of the facility;
  3. The interest rate shall be revised back to the Prescribed Rate in the following month upon full settlement of the arrears;

Overdraft (“OD”)

  1. Additional Interest Rate of 1.00% per annum above the Prescribed Rate shall be charged on all sums drawn in excess of the limit;
  2. Additional Interest Rate of 1.00% per annum is chargeable on the entire outstanding sum in the event that the OD facility is in default;

*Prescribed Rate = Contracted / Effective Interest rate
e.g. Base Rate (BR) +0.62%= 3.19% per annum (current BR is 2.57%)

The revised Product Disclosure Sheet is available at https://www.alliancebank.com.my/financing/personal/mortgage.aspx

Thank you.

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