Product Disclosure Sheet- Personal Financing-i

PRODUCT DISCLOSURE SHEET Bank Islam Malaysia Berhad

(Read this Product Disclosure Sheet before you decide
to accept the Personal Financing-i. Be sure also to read Personal Financing-i
the terms in the letter of offer / welcome note. Seek
clarification from your institution if you do not
understand any part of this document or the general
terms).
1. What is Bank Islam Personal Financing-i facility?
 Bank Islam Personal Financing-i facility is an unsecured/secured term financing to meet personal financial
needs which is calculated based on either a fixed rate or variable/floating rate.
2. What is the applied Shariah concept?
 The Shariah concept used is Tawarruq.
 The illustration of the product structure is depicted below:

 Roles & Responsibilities of the Contracting Parties in Tawarruq based Financing Products
The customer purchases the commodity from the Bank on Murabahah basis at the Bank’s Sale Price. In
this arrangement, the purchase will be performed by the Bank as the Purchase Agent for the customer. As
the Sale Agent for the customer, the Bank shall sell the commodity to a commodity purchaser at cost
price. Proceeds from the transaction will be credited for customer’s utilization. The customer is obliged to
pay the amount due from the Murabahah transaction as per the agreed terms.

 ‘Commodity’ means any commodity acceptable to the Bank e.g. palm oil, plastic resin, rubber, cocoa
beans, soy beans, timber and metal (excluding gold and silver) traded at any commodity platform
approved by the Bank. The purchase and sale of the commodity are performed based on the mandate of
the customer, where the Bank as Purchase Agent and Sale Agent trades the commodity as made available
and provided by commodity providers subject to the Bank prevailing policies.

Page 1 of 6

Product Disclosure Sheet – Personal Financing-i Sales

Bank Islam Malaysia Berhad
BU/PDS/ Personal Financing-i Sales /Version 1.0/2018
3. What do I get from this product?
 Total Amount Financed Minimum financing amount of RM10,000 and maximum
amount of RM200,000 or more if secured with
collateral. The final financing amount approved will be
based on the Bank’s credit evaluation.

 Tenure From 1 year (12 months) to 10 years (120 months).

 Profit Rate You may opt for either one of the two types of rates i.e.
Fixed rate or Floating rate:
Fixed rate
1-10 years - from 4.20% to 8.00% per annum.

Note:
Profit is calculated on a monthly basis based on “Sum of
Digit”.

Floating rate
1-3 years - Base Rate (BR) + 2.25% per annum or Base
Rate (BR).
4-10 years - Base Rate (BR) + 3.15% per annum or Base
Rate (BR).

Note:
Profit is calculated on a daily basis based on “Monthly
Rest”.

 Effective profit rate From 6.15% to 13.12% depending on the financing

tenure.
4. What is the base rate (BR)?
 The BR we offer on this product is made up of two parts, our benchmark cost of funds (COF) and the
Statutory Reserve Requirement (SRR) cost imposed by Bank Negara Malaysia. Our benchmark COF reflects
the cost of raising new funds and is based on 3-month KLIBOR as the reference rate plus a Funding Cost
Adjustment.

5. What are possible scenarios to trigger a change in the BR?

 Our BR can rise or fall due to changes in the benchmark COF and changes in the SRR. Changes in the
benchmark COF could occur due to changes in the Overnight Policy Rate (OPR) as decided by the
Monetary Policy Committee of Bank Negara Malaysia, as well as other factors such as market funding
condition due to global and domestic economic environment.

Page 2 of 6

Product Disclosure Sheet – Personal Financing-i Sales

Bank Islam Malaysia Berhad
BU/PDS/ Personal Financing-i Sales /Version 1.0/2018
6. Historical benchmark COF in the last 3 years

Note: *The above Historical Benchmark Cost of Fund (COF) is from December 2014 as Base Rate requirement was introduced
following Bank Negara Malaysia’s policy on Reference Rata Framework (effective 2 January 2015). For Base Rate on 30 January 2018,
the Benchmark COF used was based on 3 months KLIBOR as at 26 January 2018.

7. What are my obligations?

 Monthly instalment amount. The monthly instalment is calculated in accordance to
the following formula :
Fixed Rate:

((P x R x T) + P) / t,
where:
P = Financing Amount Approved
R = Profit rate per annum
T = Tenure of facility in years
t = Tenure of facility in months

Floating Rate:

12 * T
P R
1+
1200 1200

12 * T
R
1+ - 1
1200

Where:
P = Financing amount approved
R = Profit rate per annum
T = Tenure of facility in years

 You are required to arrange either Salary Deduction or Salary Transfer with Auto Fund Transfer or
Standing Instruction for the monthly instalment payments.
 You are obliged to pay the monthly instalment payments until full settlement of the financing. Should the
financing tenure be extended beyond the retirement age, you are still obliged to pay the monthly
instalment payments. However, you may opt at any time to fully settle the financing.

Page 3 of 6

Product Disclosure Sheet – Personal Financing-i Sales

Bank Islam Malaysia Berhad
BU/PDS/ Personal Financing-i Sales /Version 1.0/2018
8. What other charges do I have to pay?
 Stamp duties (as per the Stamp Duty Act 1949 (Revised 1989)).
 Wakalah or agency fee of RM 50.00.
 The fees/charges are inclusive of 6% GST where applicable.
Cancellation of the facility
You are to pay the Bank all costs (if any) for the preparation and registration of securities documents that
has been incurred by the Bank in connection with the Facility including the expenses incurred during the
claim process if the facility is cancelled.

9. Does Bank Islam require advance payment?

 Yes. Bank Islam requires 2 months payment as advance payment.

10. What if I fail to fulfill my obligations?

Should you fail to fulfil your obligation in a timely manner, the following shall apply:-

1. Late Payment Charge

The Bank shall impose Ta’widh (compensation for late payment charge) to you as follows:-

Before maturity of the facility

A sum equivalent to one per cent (1%) per annum on overdue instalment(s) until date of full
payment;

Formula:
Overdue instalment (s) x 1% x No. of overdue day(s) / 365

After maturity of the facility

A sum equivalent to the prevailing daily overnight Islamic Interbank Money Market Rate on
outstanding balance i.e. outstanding Sale Price less ibra’ (if any);

Formula:
Outstanding Sale Price(less ibra’/rebate) x Prevailing IIMM% x No. of overdue day(s) / 365

Post judgement debt

A sum equivalent to the prevailing daily overnight Islamic Interbank Money Market Rate on basic
judgement sum calculated from judgement date until date of full payment.

Formula:
Outstanding Sale Price(less ibra’/rebate) x Prevailing IIMM% x No. of overdue day(s) / 365

Note: The imposition of Ta’widh shall be in such manner as approved by BNM.

2. Event of Default
In the event of default of payment, the Bank may by written notice to you, demand for
immediate payment of amount overdue from you and/or the guarantor.
The Bank has the right to set-off any credit balance in your deposit and/or investment account
which is maintained with the Bank against any overdue payment under this financing.
Legal action will be taken if you fail to respond to the reminder notices. Any security pledged to

Page 4 of 6

Product Disclosure Sheet – Personal Financing-i Sales

Bank Islam Malaysia Berhad
BU/PDS/ Personal Financing-i Sales /Version 1.0/2018
 the Bank (such as property, machinery, etc.) may be foreclosed/repossessed and you are to bear
all costs incurred in the disposal of the asset. You are also responsible to settle any shortfall after
the asset is sold.
Legal action against you may affect your credit rating leading to any future credit assessment
being more difficult or expensive to you.
Trigger of cross default of other facilities with the Bank.

11. What if I fully settle the financing during the ‘lock-in’ period?
‘Lock-in’ period is not applicable for this product.

12. What if I fully settle the financing before its maturity?

 In the event of Early Settlement of the Financing, the Bank undertakes to grant to you an Ibra’ (rebate)
which is equivalent to the Deferred Profit at the point of settlement.

Ibra’ (rebate) Formula: Ibra’ /rebate on early settlement = Deferred Profit.

Note:
i. Deferred Profit = Total Contracted Profit – Accrued Profit.
ii. Total Contracted Profit = Selling Price – Purchase Price (or Financing Amount).
iii. Accrued Profit is calculated based on Effective Profit Rate of the outstanding Purchase Price (or
Financing Amount) being disbursed (or utilised).
13. Do I need any Takaful coverage?
 It is an optional. Personal Financing Takaful Plan (PFTP) is an option for the coverage protection against
death or total permanent disability. PFTP is currently made available by the Takaful provider approved by
the Bank. However, you are free to use any other Takaful service operator which requires you to arrange
it on your own.
 PFTP is Optional for a secured facility.
14. Do I need a guarantor or collateral?
 If you do not meet the minimum credit requirement, the Bank may require a guarantor/ more guarantor
or collateral in order for you to proceed with the submission.
 You may refer to website http://www1.bankinginfo.com.my/ on information of your rights and
responsibilities becoming as a guarantor.
15. What do I need to do if there are changes to my contact details?
 It is important for you to immediately inform us of any change in your contact details to ensure that all
correspondences reach you in a timely manner.
16. Where can I get assistance and redress?
 If you have difficulties in servicing the monthly profit payments and the outstanding Bank’s Sale Price, you
should contact us earliest possible to discuss the payment options.
You may contact us at:
Customer Care Department

Bank Islam Malaysia Berhad

th
17 Floor, Menara Bank Islam,
No. 22, Jalan Perak,
50450 Kuala Lumpur.

Page 5 of 6

Product Disclosure Sheet – Personal Financing-i Sales

Bank Islam Malaysia Berhad
BU/PDS/ Personal Financing-i Sales /Version 1.0/2018
 Tel: 03-26 900 900
Fax: 03-2782 1337
Email: [email protected]
 Alternatively, you may seek the services of Agensi Kaunseling dan Pengurusan Kredit (AKPK), an agency
established by Bank Negara Malaysia to provide free services and money management, credit counseling,
financial education and debt restructuring for individuals. You can contact AKPK at:
Tingkat 8, Maju Junction Mall
1001, Jalan Sultan Ismail,
50250 Kuala Lumpur.
Tel: 1-800-88-2575
Email: [email protected]
 If you wish to complain on the products or services provided by us, you may contact us at:
Customer Care Department
Bank Islam Malaysia Berhad
th
17 Floor, Menara Bank Islam
No 22, Jalan Perak
50450 Kuala Lumpur.
Tel: 03-2782 1284

Fax: 03 2782 1337

Email: [email protected]
 If the query or complaint is not satisfactorily resolved by us, you may contact Bank Negara Malaysia LINK
or TELELINK at:
Block D, Bank Negara Malaysia,
Jalan Dato’ Onn,
50480 Kuala Lumpur.
Tel: 1-300-88-5465
Fax: 03-2174 1515
Email: [email protected]
17. Where can I get further information?
Should you require additional information about Personal Financing-i product, please refer to the
bankinginfo booklet on personal financing-i, available at all our branches and the
www.bankinginfo.com.my.
18. Other Personal Financing-i package available?
 Beside normal package offering, other package available (among others) are:
i. Non package financing.
ii. Collateralized financing.

IMPORTANT NOTE: LEGAL ACTION MAY BE TAKEN AGAINST YOU IF YOU DO NOT KEEP
PAYING INSTALMENTS OF YOUR PERSONAL FINANCING-i FACILITY.
The information provided in this disclosure sheet is valid as at _____________ (dd/mm/yyyy).

Note :

1. The above is for illustration purposes only. Profit and charges may vary and subject to the Bank’s terms and
conditions.
2. The above information provided in this disclosure sheet is valid as at date hereof.
3. The BR shown in this disclosure sheet is subject to changes.
Page 6 of 6

Product Disclosure Sheet – Personal Financing-i Sales

Bank Islam Malaysia Berhad
BU/PDS/ Personal Financing-i Sales /Version 1.0/2018