Personal Loan

Topics: Loan, Debt, Unsecured loan Pages: 1 (374 words) Published: October 14, 2010
What is personal loan? Why would we apply a personal loan? Loans available from banks and other financial institutions to private individuals for personal use such as the purchase of a motorcar, holiday or house are personal loans. We can apply a loan at any bank as long as we can afford to pay it back. However, which bank that we want to apply loans are depends to ourselves decisions whether choose Maybank or Alliance Bank. Both Maybank and Alliance Bank have their own term and conditions and benefits among them as to attract people to do loans with them. Maybank offer their loans to individual Malaysian citizen that aged between 21-60 years old with minimum income RM30’000 per annum whereas Alliance Bank offer to Malaysian and permanent residents working or residing Malaysia that aged 21-55 years old with minimum income RM24’000 per annum. Maybank’s loans come with benefits that give fixed monthly instalment as low as RM 115.28 per month with loan amount from RM5’000 to RM100’000 and the tenure of the loans are 1 to 6 years. On the other hand, loans from Alliance Bank will come with, as minimum as RM133.29 monthly repayment for loan amount from RM5’000 to RM150’000 and the tenure of the loans are 5 years maximum. Terms and Conditions applied in this loan. There are also similarities according to the fee and charge between Maybank and Alliances Bank. With no guarantor needed, the processing and stamping fee for both banks are free. Late payment charges among them are same with 1% p.a on the amount in arrears, calculated from overdue date till date of full monthly payment. For early settlement fees, Maybank And Alliance Bank require RM200 or a sum equivalent to 3% of the outstanding balance of the loan whichever is higher, only is settled within first of the tenure. In conclusion, the selection to choose which bank is better for us to make loans are depends to our justifications according to their varied terms and conditions along with...
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