• You will have more savings.
• You will be able to commit to the monthly minimum payment on or before the due date.

As the interest rates charged by each bank may differ, customers are advised to refer to their credit card statements or check with their credit card issuers.

• Moving up from tier III to II and subsequently to tier I will eventually reduce the annual interests charged.
• This means a migration from tier III to tier I can see your savings of four percent per annum that otherwise will be charged against your credit card debt.

• It is not hard to lower your interest rates payments. For example, if you consistently pay the minimum amount consistently for 12 consecutive months, you are considered a good pay master and enjoy a low 13.5 percent per annum interest.
• If you manage to pay minimum payment for at least 10 months out of a 12-month cycle, you will enjoy 16 percent interest per annum.
• Please note that credit card interest outside Malaysia is in the 18 – 42 percent per annum range.

The rates will be in effect beginning late March 2009.

Yes certainly. By moving up to tier I, it means you save on the interest charges and subsequently you will have additional money to spend or save.

It depends on your current situation - if it is proven you are not able to make the repayment, please contact your bank.

• You may seek Agensi Kaunseling dan Pengurusan Kredit (AKPK)’s assistance if you have more than one credit card.
• AKPK is a Bank Negara agency tasked with assisting people with personal debt issues.

• Please note that a credit card is merely a deferred payment tool for goods and services purchased.
• The outstanding balance on your credit card is correspondingly reduced against your credit limit; the quicker you repay the amount used, the better your credit standing.
• To avoid incremental interest rate increases, please pay the principal sum used promptly.
• Financial discipline is key to good credit card use practice.

• The option is entirely yours as either way you will save.
• If your cash position is healthy, it may be best to maintain the monthly installments and shorten payment tenure.

It is anticipated that the reduction exercise would be completed around the end of the 1st quarter of 2009 because it would involve system changes and needs to be done in a phased approach.

Yes, you will save on the interest portion on your loan which is now reduced in absolute terms.

Yes you can. All you need to do is contact your bank immediately.

• There are many factors that could result in this. While transparency is paramount, the business’s sustainability, cash flow, income generation and other risk factor also needs to be considered closely by prospective lenders.
• The bank has an obligation to clearly state why your loan application was rejected so that you may take appropriate steps to mitigate for these factors.

No, it is not true. The funds are still available for eligible borrower.

Usually, penalty charges are levied for loans which have been fully settled within two to five years from the date of the loan’s commencement. This period would however differ from bank to bank.

Different banks use different methods. While some calculate penalty charges based on a percentage of either original loan or outstanding balance, others may impose a flat rate, usually between three to six month’s interests against the original loan amount.

Each bank has its unique loan features to provide the most attractive loan package for the customer to save interest.

This is due to the administrative and funding cost that has already been incurred by the bank to finance the loan.

If notice is required, there will not be penalty charges once the written notice has been served. However, it is important to understand the terms and conditions of the full prepayment clause in the loan agreement as it may differ from one bank to another.

It depends on what you want, savings or convenience? For principal loan reduction, interest savings can be substantial since the lump sum prepayment reduces the principal loan amount which will reduce interest charges. This reduces either the loan period or the monthly installment amount.

On default, the bank will normally reduce the loan period and maintain the monthly installment amount. Again, you are required to continue with your installment payment the following month.

For advance payment, the customer simply enjoys the convenience of not making future monthly installments until the lump sum prepayment is exhausted. However, there will not be interest savings and the loan period and monthly installment amount remain unchanged. If interest is computed based on daily outstanding balance, there can be immediate savings on interest.

For principal loan reduction, the lump sum payment will be used to pay off the loan's interest charges for the month and the balance of the lump sum prepayment will be used to reduce the loan's outstanding principal. However, the customer is still required to continue with the subsequent monthly installments.

As for advance payment, the lump sum payment will be used to pay the installments in advance. No future monthly installment is required up to the number of monthly installments the advance payments have covered. There is no change in the period of the loan.

The customer will need to specify the intention of their lump sum prepayment, whether it is for principal loan reduction or advance installment.