Every once in a while, your circumstances require you to seek out a bank loan, be it for your personal needs or to fund your home or business. With plenty of bank loans in Malaysia, it should be easy to find the one that suits your needs the most, whatever your financial condition is. Find out the three types of bank loans you can easily find in Malaysia:
1. Personal Loans
If you’re looking to finance your child’s education, your own wedding, or any other needs that require a hefty amount of money, you can apply for personal loans. The minimum eligibility is that you must be a Malaysian aged between 23 to 60 years old, with a minimum income of RM 7,500 (amount varies depending on different banks).
2. Home & Property Loans
There are usually three types of loans under this category: Home Loans, My First Home Scheme, and Special Housing Loan Scheme. They all come with fixed or variable rates. For Home Loans, there’s no restrictions on loan amount, and you need to be 18 and above. If you’re getting the My First Home Scheme, your income can’t exceed RM 3,000 a month, and the property should value between RM 100k and RM 400k. For the Special Housing Loan Scheme, the applicant may only own one house at any point in time, with the financing of up to RM 100k – RM 120k.
3. Business Loans
For business owners, you can get financing for a commercial property, equipment and machinery, and business term. The minimum requirement for applicants is that you need to be a Malaysian-registered entity, with the intent to purchase for investment or business. There may be fees and charges depending on a variety of factors (i.e. type of collateral pledged, financing amount). For equipment financing, there’ll be fixed monthly installments with no extra charge for repayment by Standing Instruction. For a business term loan, the financing amounts range from RM 50k to RM 400k, with a financing tenure of three to five years with no lock-in period. This loan has a hassle-free application, which means there’s no collateral, expensive legal fee, and corporate guarantee corporation fee involved.
To be eligible for any bank loan, remember to prepare the right documents. Aside from the finance-related legal documentation, make sure you’ve also included your personal details such as photocopies of your IC and payslip, among other things. Meeting the document requirements will smoothen the process. If you’ve been looking for ways to finance your needs, you can explore more bank loans in Malaysia in various categories.
There are a lot of ways you can consistently grow your wealth. Many personal finance experts would suggest that you start by amassing real estate properties. Whether it’s an apartment, a condominium unit, a house, or a piece of undeveloped land, it makes for a good and wise investment. The property market in Malaysia is booming, especially in urban centers. This means now is the perfect time to start investing your money and resources in properties. It’s a great strategy for wealth-building.
Here are some tips on how you can maximize the benefits you get from your property investments:
- Purchase properties from places that are considered as “growth areas”. This can be a city, a town, or a suburb where the demand for real estate properties is on an upward trend. Investing in growth areas is more profitable if you plan on renting out or selling your properties. To identify these areas, you need to follow the real estate industry in Malaysia carefully.
- Always think long-term. When you look into a piece of property, you need to think of how you can develop or improve it in the coming months or years. Always remember that properties usually appreciate in value as time goes by. Depending on the market, the value of the property can double or even triple in the coming years.
- Don’t be afraid to take advantage of housing loans and other forms of property loans. A lot of successful people who make a living in the real estate industry started out by availing of these loans. It’s a good way to start your investments especially if you are currently short on cash and other liquid assets. However, before you apply for a loan, you should learn more about housing loans in Malaysia to ensure that you are taking the right path.
- Seek help from property experts. Yes, it costs money to get the services of a real estate consultant or appraiser, but it will save you a lot of money in the long run. You have better chances of benefiting from your property investments if an expert is advising and guiding you.
The bottom line here is that investing in property assets is an excellent way to grow your wealth. It’s also the right time because the property market in Malaysia is booming. The improving economy means there’s more money to go around and there are more people who can afford to purchase houses, apartments, and other property assets.
In recent years, Malaysians have an inclination towards spending more on lifestyle products and services. For short-term gains of shareable experience, you are more susceptible to a higher cost of living that restrains the growth of your personal wealth. Where global and local economy remains gloom, this calls for a heightened awareness to buy insurance in Malaysia for your long-term benefits.
If you have been distancing yourself from insurance agents in fear of dreadful process and technical jargons, it’s time to give insurance a second thought. Getting yourself covered is an important thing to do in your life because it has become relevant to everyone. In fact, insurance may hold greater potentials in your personal finance and wealth building.
Here are three big reasons why insurance is like your best friend:
- It’s an investment
When you devote effort and energy to spend time with your best friend, you know it’s going to be a worthwhile effort despite your ups and downs. Similarly, setting a monthly premium for insurance rewards you with a greater well-being. As you plan ahead for the bigger picture, investing in insurance empowers you with a potential growth in personal wealth without sacrificing your future dreams and financial security. In situations where last minute decisions can take its toll in your friendship, the same goes for buying insurance. Hence, getting an early head start into investment will offer you greater flexibility in curating an insurance plan suited for your needs with affordable premiums.
- Sharing is caring
At first glance, the direct beneficiary of buying insurance is you. However, such investment also gives an assurance to your loved ones or future generations. Getting covered by insurance place yourself with a clearer understanding of your personal wealth, which means knowing where your money flows and what you’re insured for. It means protecting you and your loved ones from minimized financial burden in unforeseen circumstances while striving towards the dream lifestyle together.
- It has your back
When life hits you with uncertainties and doubts, a best friend pulls you out from the rut and aids in your personal growth. The process to buy insurance is a similar affair. Now, you can directly consult banking professionals addressing your financial needs accordingly. Also, staying connected with your insurance provider at emergency situations is now easier with mobile banking app and personal hotlines. With a planned future, you are more resilient to obstacles and life challenges.
Gaining a long-life best friend doesn’t take place overnight, and breaking the ice is always the most intimidating phase. Likewise, get your time to familiarize on the guidelines to buy insurance in Malaysia. A great place to start will be a visit to your personal bank or make an online inquiry.
There has been a proliferation of successful start-ups in recent years, putting countless millennials alongside seasoned executives and industry leaders in terms of income. In 2011, 97.3% of Malaysian businesses fell into the SME category, because many citizens found them to be a great opportunity for big income. For experienced professionals, well-off millennials often seem like clumsy fledglings that just got lucky. But there is a reason for the deliberate success of the younger generation. Find out how millennials manage their money, and learn how to strike it big with these 4 tips.
- Courage to Ask – One thing that sets millennials apart from the other generations when it comes to finances is that they’re not afraid to ask questions. They know when they don’t understand something, and they’re not ashamed to admit it. With that, millennials have become experts at looking for finance resources and advice, and don’t feel scared to ask someone they see as an expert when they’re stuck in a rut. Teach yourself to accept what you don’t know, and go out in search of answers to help shape your concepts on finance.
- Will to Explore – Other generations often feel more comfortable with finance strategies that are familiar, because it eliminates the need to have to feel around when trying new options. But millennials are much more willing to explore the available finance management opportunities in front of them. For instance, a high interest fixed deposit in Malaysia might seem like an unreasonable option for older generations. Why should you open an account that doesn’t allow you to touch your money? But millennials see it differently. Here they see a chance to make more money, and by sacrificing for a fixed deposit now, they can earn much more tomorrow.
- Tech Literate – Millennials have technology, and they’re not afraid to use it. Those who fall in the older generations often feel uncomfortable putting their information on a computer or a smart phone. If they need to key in bank details, they become even more reluctant. Millennials on the other hand are much more capable of pinpointing legitimate digital services that will help them manage what they have. By utilizing their technology to help monitor and budget their finances, they become much more aware of their economic status.
- Flexibility of Expectations – Unlike the older generations which were much firmer when it came to their expectations, millennials aren’t the same way. While they more or less have an idea as to what they want to achieve in terms of their savings, they understand that things can change along the way. This makes it easier for them to adapt to changing markets and shifting economies. By accepting that savings and finances will always be affected by factors that are out of our control, we can ride with the tide and become more intuitive when spending what we have.
No doubt, millennials have completely different spending and saving habits from previous generations. But for the most part, their fresh take on finance strategies seem to be working just fine. Take cues from these young earners, and adjust your money saving tactics to keep up with the times. Keep these 4 takeaways in mind to help you remodel your finance management strategies for optimal stability.
Choosing the right credit card that suits your lifestyle is like choosing your life partner: you want it to complement you and help ease your burden. With so many types of credit cards to choose from, how can you tell which one is the right one for you? Depending on your lifestyle and financial situations, certain types of credit cards would benefit you more than the others. Before you start sending an application for a credit card, be sure to do some research and consider these five important things:
1. Credit limit
The best credit card should give you a reasonable credit limit while allowing some flexibility when you need to exceed it in times of emergency, while leaving no room for you to overspend. If you’re the responsible type (with a stable full-time job or high income), you may choose a card with higher credit limit. Otherwise, stick to credit cards with lower credit limit to avoid getting yourself stuck in a financial burden.
The wonderful rewards program is one of the greatest benefits to having credit cards. With rewards points earned every time you make a purchase, you’re able to apply them toward cash back, retail purchases, travel, and other things. To earn the most points, make sure you choose a credit card that will reward you on things which you’ll spend the most on, such as clothes, groceries, petrol, etc. Another strategy to get the most points possible is picking a credit card which gives reward when you use it in places you shop the most at, like select boutiques or online stores. Remember to spend only on necessary things, and don’t make purchases for the sake of earning rewards points.
3. The cost of owning and keeping the credit card
Before you decide on a card, make sure to read the fine print. The more amazing benefits a card offers, the more you’ll spend on fees. Some of the fees to look out for include the annual fee and foreign transaction fees. An annual fee normally offers greater rewards, like more savings while you travel. Cards with foreign transaction fees will charge you more if you use it abroad. You can always avoid paying more by choosing a card with no foreign transaction fees.
4. Customer service
If you’re going to use your card often, you need to be able to reach customer service any time you need them. Your credit card company should have a good customer service ready at your beck and call in case bad things, like fraudulent charges, happen. You also need to be able to speak to a staff who’s trustworthy, competent and helpful. Avoid credit card companies with minimal human interaction, automated phone service, or difficult-to-navigate websites.
5. Annual percentage rate (APR)
The APR is an interest rate that you’re required to pay when you didn’t pay your balance in full. Make sure your card has lower APR rate that you can manage. Try to stay ahead of your balance to avoid extra charges.
When you’ve taken all of the important factors into account, you can start to apply for a credit card online for convenience and speed. As a rule of thumb, always look for a credit card that meets your needs the most, with the greatest rewards. If a credit card of your choice has terms and conditions that you think you’re unable to meet, look for the next best thing. You don’t have to compromise, but you do have to be able to pay the bills. Also, remember to stay on top of your monthly bills and try not to miss any payment to avoid incurring more fees.
One of the best things that we can do in our life is to invest in our health. We may feel young and healthy today, but we cannot deny the fact that our bodies will eventually slow down in the future. It may be prone to sickness and not perform the way it used to. This leads to unwanted expenditures such as hospital and medication bills that could deplete our finances. The best way to make sure that you are financially set once this time comes is by investing in endowment insurance. If you want to be informed about this particular type of investment, read along to know more on endowment insurance in Malaysia:
What is Endowment Insurance?
By definition, endowment insurance is a life insurance contract made to pay the insured a lump sum after the maturity time or on the time of his or her death. In short, endowment insurance is a time-locked investment that you buy from an insurance company. The lump sum stated in the contract will be given to the intended beneficiaries. If the policyholder outlives the maturity period, the endowment will be given to him or her.
Endowment insurance is a combination of both investment and life insurance. The longer the maturity period, the less expensive your monthly premium becomes. Unlike other insurances, there is no prerequisite for getting endowment insurance. You don’t even need to get a medical exam in order to qualify. As a matter of fact, any person is qualified to get it, as long as he or she can pay the monthly premium.
What are the Benefits of Buying Endowment Insurance?
The money that the insured paid for his or her endowment insurance can be taken out and used upon maturity. Endowment policies mature after a certain period of time – usually between 5, 10, 15 or 20 years. If you are planning to save money for your kid’s college or set up a business in the future, investing in endowment insurance can help you to save up for it.
Endowment insurances carry fewer risks as compared to other investment types. The money that you paid quickly accumulates. Over time, your money will earn more interest. You can claim the lump sum indicated in your insurance policy after the maturity period that you chose.
What is the Difference Between Endowment and Medical Insurances?
Medical insurances, unlike endowment insurance, can only be used during hospital-related and other medical expenses. You cannot use medical insurance to fund your business or send your children to college in the future. Additionally, some types of medical insurances do not return the premium paid.
Putting your money on the right investment can help you when you need it most. You will have peace of mind knowing that you will have something to rely on financially, in case medical emergencies happen. If you want to have a secured financial future for yourself and your family, choosing endowment insurance is one of the best ways to go.
What is a ‘mortgage default’? The term refers to a situation where a homeowner failed to keep his or her promises which was made through the signing of the mortgage contract and promissory note. When you’re falling behind on your mortgage payments, you’re automatically in default.
In this uncertain economy, homeowners may be facing financial hardships. If you find yourself in an unfortunate situation like losing a job and are unable to make mortgage payments, you are not alone. While the prospect of foreclosure is nerve wrecking, you still have a few options to avoid defaulting on your mortgage. Here’s how:
- Work with your mortgage lender Most banks don’t like to foreclosure on properties as it’s costly and the process takes too much time. Instead, they’d rather work with borrowers to come up with a solution that works for both parties. One of the solutions is to reduce monthly payments by extending the mortgage term. While you’ll end up paying more, it’ll give you enough time to pay and saves you from defaulting on your mortgage. Make sure to set up the right repayment plan. The short-term option is to try the Interest Only Mortgage, which reduces your mortgage payments.
- Refinance mortgage One of the most effective and easiest methods, you can work to get a better deal when asking to refinance your mortgage, provided you’re on the existing standard rate of your bank. If you decide to go with this option, make sure you choose the right plan which will work on your favours in the long run.
- Get mortgage insurance Protect your home from unfortunate events by getting a mortgage insurance. The type of mortgage insurance you need in Malaysia depends on the benefits you want. Some of the benefits of getting mortgage insurance include reducing the amount of capital you may lose, removing financial burdens from your loved ones, allowing you to maintain your family’s lifestyle and keep your dream home in case bad things happen, and covers you against total and permanent disability and death. Check out the Mortgage Insurance by OCBC Bank.
- Seek help from a financial adviser When you’re on the brink of defaulting on your mortgage, you should seek help from a financial adviser or accountant immediately. Your financial consultant will provide you with the right resources and expertise you need to plan and manage your finance and come up with a solution based on your circumstances.
- Resell and downsize Reselling and downsizing your property is the drastic option that you can take in case everything else fails to take off. Once you’ve managed to sell your house, you can purchase a cheaper house or rent a cheaper place in a different location. This way, you’ll be able to pay off all of your mortgage using the money saved. While this option is costly and time consuming (as it requires you to move), it gives you long-term benefit.
Try any of the solutions mentioned, and if all else fails, you can always resell and downsize. As devastating as that is, it might have saved you from getting stuck with more financial problems in the future. Take action now and don’t procrastinate when it comes to managing your finance.