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Announcement

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

Dear Valued Customers,

With effect from 1 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. Upon full settlement of the arrears, the interest rate shall be revised back to the Prescribed Rate in the following month.
  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. The Default Rate will continue to apply until such time the overdue amount being paid:
    • For partial settlement of the overdue instalments/interest payment and the amount in arrears is less than three (3) monthly instalments/interest payment, the Default Rate shall be revised to Additional Interest Rate of 1.50% per annum in the following month.
    • Upon full settlement of the arrears, the interest rate shall be revised back to the Prescribed Rate in the following month

Illustration on additional monthly instalment caused by additional interest rate charged are shown in the table below:

Additional Interest Rate   1.50% 2.50%
Total Balance Outstanding RM300,000 RM300,000 RM300,000
Interest rate 3.57% p.a. 5.07% p.a. 6.07% p.a
Facility Remaining Tenure 240 months 240 months 240 months
Monthly Instalment RM1,751 RM1,992 RM2,162
Additional monthly instalment caused by additional interest rate charged / remaining tenure   +RM241
(+14%)

+RM411
(+23%) 

 

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

For further enquiries, please call our Customer Service at 03-5516 9988.

Thank you.

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