Product Disclosure Sheet- Personal Financing-i PRODUCT DISCLOSURE SHEET (Read this Product Disclosure Sheet before you decide to accept the Personal Financing-i. Be sure also to read the terms in the letter of offer. 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? Personal Financing-i 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 Shariah concept and contract applicable? The Shariah concept used is Tawarruq which comprises of Bai Murabahah and Wakalah contracts. The illustration of the product structure is depicted below: 3. What do I get from this product? Total amount financed Tenure Profit rate 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. From 1 year (12 months) to 15 years (180 months). Customer may opt for either one of the two types of rates i.e. Fixed rate or Floating rate: Fixed rate 1-3 years - from 3.25% to 6.00% per 4-10 years - from 4.50% to 7.00% per 11-15 years - from 5.50% per Page 1 of 5
Effective profit rate 4. What are my obligations? Monthly installment amount. Floating rate 1-3 years - Base Financing Rate (BFR) 2.10% per 4-10 years - Base Financing Rate (BFR) 0.60% per 11-15 years - Base Financing Rate (BFR) + 0.25% per From 4.50% to 11.69% depending on the financing tenure. The monthly installment is calculated in accordance to the formula below: 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: P R 1 + 1200 1200 12 * T 12 * T R 1 + - 1 1200 Where: P = Financing Amount Approved R = profit rate per annum T = Tenure of facility in years Customer is required to arrange either Salary Deduction or Salary Transfer with Auto Fund Transfer or Standing Instruction for the monthly installment payments. Customer is obliged to pay the monthly installment payments until full settlement of the financing. Should the financing tenure be extended beyond the retirement age, the customer is still obliged to pay the monthly installment payments. However, the customer may opt at any time to fully settle the financing. 5. What are the fees and charges that I have to pay? Stamp duties (as per Stamp Act 1949 (Revised 1989)). Wakalah @ agency fee of RM 50.00. Page 2 of 5
6. Does Bank Islam hold my two months payment as advance payment? No. Bank Islam does not hold two months payment as advance payment. However, if the mode of payment is by way of Standing Instruction, Bank Islam may request 2 months advance payment. 7. What if I fail to fulfill my obligations? Customer shall pay the Bank late payment charges by way of ta'widh (compensation) as follows: a) Before maturity of the Facility A sum equivalent to one per centum (1%) per annum on overdue instalment(s) until date of full payment; b) After maturity of the Facility A sum equivalent to the prevailing daily overnight Islamic Interbank Money Market Rate on outstanding balance i.e. outstanding Selling Price less ibra (if any); c) Post Judgment Debt A sum equivalent to the prevailing daily overnight Islamic Interbank Money Market Rate on basic judgment sum calculated from judgment date until date of full payment. PROVIDED ALWAYS that the above said ta widh (compensation) rates may be varied by Bank Negara Malaysia (BNM) from time to time and shall be applied in such manner as approved by BNM. Legal action may be taken if you fail to respond to the reminder notice. Legal action against you may affect your credit rating leading to your future credit assessment being more difficult or expensive to you. 8. 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 the Customer 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 utilized). 9. Do I need any takaful coverage? Yes. Personal Financing Takaful Plan (PFTP) is required. Optional for secured facility. 10. Documents that I need to submit? Minimum documents required for this financing: Salary earner i. Photocopy of IC. ii. Latest 3 months salary slip. iii. Latest Employee confirmation letter. iv. Latest annual income/tax statement or latest 3 months banks statement or EPF statement. Page 3 of 5
For self employed i. Photocopy of IC. ii. Business Registration. iii. Latest 6 months Bank Statement. iv. Latest 2 years Financial Statement. v. Latest annual income/tax statement. 11. What do I need to do if there are changes to my contact detail? 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. 12. Where can I get assistance and redress? If you have difficulties in making the monthly installment payments, you should contact us earliest possible to discuss the payment options. 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: 1-800-22-2575 Email: enquiry@akpk.org.my If you wish to complaint on the products or services provided by us, you may contact us at: Feedback Channel & Distribution Department (Jabatan Rangkaian & Pengagihan Maklum Balas) Level 18, Menara Bank Islam No 22, Jalan Perak 50450 Kuala Lumpur. Tel: 03-2782 1281/1284/1285 Fax: 03 2782 1337 Email: feedbackchannel@bankislam.com.my 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: bnmtelelink@bnm.gov.my 13. Other Personal Financing-i package available? Beside normal package offering, other package available (among others) are: Non package financing. Collateralized financing. Page 4 of 5
14. Where can I get further information? Should you require additional information about Personal Financing-i product, please refer to the banking information booklet available at all our branches or contact: Contact Centre Department 17 th Floor, Menara Bank Islam, No. 22, Jalan Perak, 50450 Kuala Lumpur. Tel: 03-26 900 900 Email: contactcenter@bankislam.com.my IMPORTANT NOTE: LEGAL ACTION MAY BE TAKEN AGAINST YOU IF YOU FAIL TO PAY THE MONTHLY INSTALLMENTS OF YOUR PERSONAL FINANCING-i FACILITY. The information provided in this disclosure sheet is valid as at 1 July 2012. Page 5 of 5