Note: *On adhoc basis, and subject to management approval as preference is given under Musharakah Mutanaqisah concept.

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1 PRODUCT DISCLOSURE SHEET (Read this Product Disclosure Sheet before you decide to take the Affin Tawarruq Term Financing-i. Be sure to also read the terms in the letter of offer. Seek clarification from the Bank if you do not understand any part of this document or the general terms) ENGLISH VERSION Bank : Affin Islamic Bank Berhad Product : Affin Tawarruq Term Financing-i Date of Issuance to Customer : 1. What is this product about? Financing facility under Tawarruq Term Financing-i may be granted for the following purposes: To part finance renovation/restoration/extension cost, against property that is being financed under Musharakah Mutanaqisah (MM). Financing against unencumbered property.* Note: *On adhoc basis, and subject to management approval as preference is given under Musharakah Mutanaqisah concept. 2. What is the Shariah concept applicable? Tawarruq. Tawarruq is a series of sale contracts where the buyer buys an asset from a seller for a deferred payment and subsequently sells the asset to a third party for cash at a price less than the deferred price, with the objective of obtaining cash. Customer enters into arrangement with the Bank for Tawarruq Term Financing-i facility and pursuant to creation of facility limit, the Bank will buy specified commodity from commodity Broker A / Supplier A at Bank s Purchase Price. Bank then sells the specified commodity to the Customer at Bank s Sale Price to be paid on deferred payment terms as agreed. The Customer will appoint the Bank as agent to sell commodity to commodity Broker B / Supplier B at a price equivalent to the Bank s Purchase Price. The proceeds will be used for acquisition of the property. 3. What is the Base Rate (BR)? The new Reference Rate Framework introduced by Bank Negara Malaysia aims to provide a more transparent reference rate to enable better decision by consumers in making choices among the many loan/financing products offered by financial institutions. Under this framework, the Base Rate (BR) will replace the Base Lending Rate (BLR) and Base Financing Rate (BFR) as the main reference rate for new retail floating rate loan/financing effective 2nd January The Bank s BR is computed based on its benchmark cost of funds and the Statutory Reserve Requirement (SRR) cost, and is applicable for both conventional loan and Shariahcompliant financing. 4. What are possible scenarios to trigger a change in the BR? The BR can rise or fall due to changes in monetary policy such as the Overnight Policy Rate (OPR) as decided by the Monetary Policy Committee of Bank Negara Malaysia, as well as other factors such as changes in funding conditions.

2 5. Historical benchmark Cost of Fund (COF) for the past three years: 6. What do I get from this product? Eligibility Individuals aged 18 and above Ceiling Rate It refers to the maximum profit rate chargeable to the Customer throughout the financing tenure. Any increase in the BR will halt at the specified maximum ceiling rate stated during the signing of agreement. Margin Of Financing Maximum Margin of Financing up to 90% subject to Bank s credit evaluation and approval. Actual Margin of Financing will be determined by credit approving officer based on the type of property, location and payment capacity of the applicant. Not applicable for Limited company Tenure The maximum tenure is up to 35 years or up to the age of 70, whichever is earlier.

3 Attractive profit rate as follows:- (Terms and Conditions apply) Property Value RM500K and below RM500K and above Vacant Land BR+1.51% p.a. BR+1.31% p.a. BR+4.61% p.a. Any special promotion and packages of this product will be communicated to the Customer by the Bank via various channels of communications. Early Settlement Penalty Not Applicable 7. What are my obligations? Example: Total amount financed : RM450, Margin of finance : 90% Tenure Monthly instalment : 10 years : BR+1.51% (ERR = 5.61% p.a.) : RM4, The total amount you must pay is RM588,990.00* The BR shown in this disclosure sheet is subject to changes. *Note: Total payment amount may vary subject to Base Rate (BR) changes. Effective 30 th January 2018, the revised BR is 4.10% p.a. 8. What are the fees and charges I have to pay? Type of Fee / Charge Details of Fee / Charge Stamp Duty As per Stamp Act 1949 (Revised 1989) Agency Fees The Agency Fee is related to the brokerage cost for each time the Bank performs Tawarruq transaction. The imposition of agency fee is as follows: SMEs and Individual the fee is RM5.00 per RM1.0Mil.

4 Type of Fee / Charge Legal fees pertaining to financing documentations Processing Fees (per application) Redemption statement (per account per request) Security document retrieval fee (per request for complete set of documents) Restructuring / Rescheduling fee Additional financing statement (per request) Letter of confirmation for EPF withdrawal Details of Fee / Charge The customer is required to pay all legal fees and incidental expenses in connection with the facility (including but not limited to the preparation, stamping and registration of any security documents and the lodgement and withdrawal of caveats). Security documentation for the financing is to be handled by solicitor under the Bank s panel. Should a non-panel solicitor is appointed by the Customer, guidelines on application of a nonpanel solicitor by the Bank must be complied and approval is strictly at Bank s discretion. However, to avoid any delay in the documentation or process, the appointment of the Bank s panel lawyers is highly encouraged. No charges RM50.00 RM30.00 No charges RM10.00 RM20.00 Note: i. Agency Fee is subject to change from time to time as quoted by the commodity provider. ii. As a GST registered company, AFFIN ISLAMIC will be charging GST at 0% for all taxable supplies made to you on 1 st June 2018 onwards. iii. We will communicate to you at least 21 calendar days prior to the effective date of implementation if there are any changes in fees and charges that applicable to your financing facility. iv. As per all other terms and conditions in the Letter of Offer. 9. What if I fail to fulfill my obligations? If you have problem meeting your financing obligation, contact us early to discuss payment alternatives. Delay on your part could lead to the following consequences : 1. In the event your facility is in default for three (3) months on: (i) Payment of profit portion of the Bank s Sale Price pending the commencement of monthly installment: or (ii) Payment of the monthly installments of the Bank s Sale Price

5 the Bank shall revise the Effective in your letter of offer to BR % p.a calculated on the outstanding principal, or such other rate or basis of calculation of the rate as the Bank may determine at its sole and absolute discretion. When the Facility is classified as a Non-Performing Financing, the Bank shall revise the Effective Profit Rate in your letter of offer to BR % p.a or such other rate or basis of calculation of the rate as the Bank may determine at its sole and absolute discretion. 2. Prior to the revision of the rate, the Bank shall provide a written advance notice of not less than 21 days. 3. If you have regularized your account and after due assessment of the Bank, the Bank shall reinstate the Effective as per the Letter of Offer regardless whether you submit application for the reinstatement or not. If your Effective has been reinstated, but subsequently revised again due to paragraph 1 above, the Bank shall reinstate the rate after regularization of account as per the Letter of Offer, upon application for reinstatement by you and due assessment by the Bank. 4. The above revised Effective is subject to not exceeding the Ceiling. Compensation Charges (Ta widh) Customer will be imposed with compensation charges of 1% per annum on the overdue installment or any other method approved by Bank Negara Malaysia. As per all other terms and conditions in the Letter of Offer. 10. What if I fully settle the financing before its maturity? The Bank does not impose a lock-in period for this facility and there is no fee imposed for early settlement before maturity. The Bank shall grant rebate (ibra ) which is equivalent to the deferred profit at the point of settlement. Ibra (rebate) formula : Ibra (rebate) on early settlement = deferred profit reasonable estimated cost incurred by the Bank Note: Deferred Profit = Total Contracted Profit Accrued Profit Total Contracted Profit = Selling Price Purchase Price (or Financing Amount) Accrued Profit is calculated on Effective of the outstanding principal being utilized.

6 11. Do I need any Takaful coverage? Mortgage Reducing Term Takaful (MRTT) is optional but highly encouraged. In the event of death and total permanent disability, the Takaful will pay off all outstanding amount of your financing with the Bank. This will alleviate the burden of payment on your survivors or next of kin. 12. What are the major risks? The profit rate on this financing is floating and it is pegged to Base Rate (BR). Profit rate may change according to changes in the reference rates. An increase in Profit rate may result in higher monthly payment. 13. What do I need to do if there are changes to my contact details? It is important that you inform us of any change in your contact details to ensure that all correspondences reach you in a timely manner. In accordance of Affin Islamic Bank s policy/guidelines and per standard security documents, any change of contact details has to be in writing duly signed off by the customer(s) and addressed to Affin Islamic Bank Berhad 14. Where can I get assistance and redress? If you have difficulties in making payments, you should contact us earliest possible to discuss payment alternatives. If you wish to complaint on the products or services provided by us, you may contact us at: AFFIN ISLAMIC BANK BERHAD 12 th, Floor, Menara Affin 80, Jalan Raja Chulan Kuala Lumpur Tel : Fax : yourvoice@affinbank.com.my Alternatively, you may seek the services of Agensi Kaunseling dan Pengurusan Kredit (AKPK), an agency established by Bank Negara Malaysia to provide free services on 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, Kuala Lumpur. Tel : enquiry@akpk.org.my If your 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, Kuala Lumpur. Tel : Fax : bnmtelelink@bnm.gov.my

7 15. Where can I get further information? Please contact us at our nearest branch to you or call our Contact Centre no or visit our web site / for further details. 16. Other property financing packages available Affin Home Credit Plus-i (Remortgage) Affin BP Credit Plus-i (Remortgage) Affin Home Extra Plus-i (Enhancement) Affin BP Extra Plus-i (Enhancement) Affin Tawarruq Cash Line-i IMPORTANT NOTE: YOUR PROPERTY MAY BE FORECLOSED IF YOU DO NOT KEEP UP PAYMENTS ON YOUR FINANCING. The information provided in this disclosure sheet is valid as at 16 th October 2018