A Comprehensive Guide on Bank Islam Personal Loan (2023)

Bank Islam Personal Financing-i Fixed Rate Package is a personal financing plan from Bank Islam Malaysia Berhad. This personal loan plan is also known as Bank Islam Personal Financing-i (package with fixed rate) or Bank Islam Flat Rate Personal Financing-i Package.

There are two Personal Financing-i Package plans offered by Bank Islam, namely:

i) Personal Financing-i Fixed Rate Package and;

Bank Islam Personal Financing-i Fixed Rate Package is an unsecured Islamic personal loan that is 100% Shariah compliant. This means you do not need to submit any collateral or provide a guarantor to apply for this loan.

ii) Personal Financing-i Floating Rate Package

This personal loan is similar to the above as mentioned, just that it differs in the interest rate. This personal loan offers a financing rate from the range of 4.42% p.a to 4.52% p.a.

The Ultimate Guide to Personal Financing-i Fixed Rate Package

Image source: ERATUKU

Personal Financing-i Package is offered to those who serve in the Public Sector, i.e. government employees, employees of government-linked companies (GLCs), employees of statutory bodies and also private sector employees from selected companies.

The amount of financing offered is from RM10,000 to RM300,000 with a maximum financing period of up to 10 years. The profit sharing rate charged is very reasonable which is 4.99% p.a (without Takaful coverage).

Eligibility to Apply 

Bank Islam does not impose strict conditions for the application of this personal financing plan. Here are the eligibility conditions that you need to comply with if you want to apply for this loan.

  • Malaysian.
  • Aged between 18 years to 60 years.
  • Working/Serving in one of the following categories:

– Government Staff.

– Employees of Government Linked Companies (GLCs).

– Staff of Statutory Bodies.

– Private Employees (selected Public listed companies in the Islamic Bank Package).

  • With a monthly income of RM2,000 (gross salary) or an annual income of RM24,000 (gross salary).
  • Not blacklisted by any Bank in Malaysia or AEON Credit.
  • There is no account under Special Attention Account (SAA).
  • Not under the auspices of AKPK.

Documents Needed 

Image source: Bank Islam Malaysia

If you meet the eligibility requirements set by Bank Islam and want to apply for Bank Islam Personal Financing-i Fixed Rate Package, here are the documents you need to prepare.

  • Copy of Identity Card (MyKad).
  • Copy of Salary Slip for the last 3 months.
  • Copy of Bank Statement (salary crediting) for the last 3 months.
  • Latest position confirmation letter.
  • One of the documents below: – A copy of the latest EPF (EPF) statement; – Copy of latest income statement (Form BE/eBE/EA/EC).

Fees and Charges 

Image source: Bank Islam Malaysia

  • No processing charges

Like most Islamic personal loans, Bank Islam does not charge any processing charges if your Personal Financing-i Package application is passed. However, it is necessary to pay the agency charge and the monthly installment advance charge. 

  • No early termination charges

Bank Islam will also not charge any early termination charges if you intend to settle your loan earlier than the agreed period. You will also be given a rebate (Ibra’) by Bank Islam.

The following are charges or fees that will be charged by Bank Islam if your Personal Financing-i Fixed Rate Package application has been approved.

  • No processing charges.
  • Stamp Duty charges of 0.5% of the passed amount.
  • Agency Charge (Wakalah) RM50.00
  • Advance payment equal to 2 months of monthly installments. You do not have to pay installments in the first two months of the financing period.
  • Other charges for this financing are as follows.
  • A late payment fee of 1% of the outstanding balance.

Benefits and Features of Bank Islam Personal Financing-i Package With Fixed Profit Rate

As one of the pioneers of Islamic financial institutions in Malaysia, Bank Islam offers several attractive features for Personal Financing-i Fixed Rate Packages. Here are the features and advantages of this personal loan plan.

100% Shariah compliant

This loan is a fully Shariah compliant Islamic personal financing plan with the concept of Tawarruq, and Murabahah commodities.

No collateral

Since this is an unsecured personal loan, the applicant does not need to provide collateral or submit a guarantor to apply.

Flexible financing amount

You can apply as low as RM10,000 to RM300,000 for this Personal Financing-i Package. A high amount for an unsecured personal finance plan.

Fast approval

You only have to wait less than 5 working days to find out the result of your Bank Islam loan application after you send all the necessary documents.

Flexible payment methods

You can make monthly payments for your Personal Financing-i Package through Employer Salary Deductions (PGM) or salary transfers to Bank Islam through Autodebit.

Frequently Asked Questions 

My salary deduction has exceeded 60%, can I apply for Bank Islam Personal Financing-i Fixed Rate Package?

The general eligibility requirement for the personal financing plan is that the salary deduction does not exceed 60%, unless stated otherwise in the application eligibility requirements section above. However, this is not the main factor that determines whether a loan application is approved or not because there are many other factors that play a role. In other words, even if the salary deduction is more than 60%, but the credit record or financial record and the debt service ratio (Debt Service Ratio) are beautiful – you can try to apply.

I have a blacklist on the CTOS report. Can I apply?

This plan is not offered to those who are blacklisted in the CTOS report. However, if the blacklist record in the CTOS report is not from a financial institution (bank/cooperative/AEON/PPW) and is from a telco company, motor shop, etc. – you can try to apply.

How do I pay back or what is the installment payment method?

Reimbursement can be made through standing instruction/order, Auto Debit/Direct Debit, Employer’s Salary Deduction (PGM) or simply just salary transfer.