Everything You Need To Know About OCBC Personal Loan (2023)

Types of OCBC Personal Loans 

Your financial burden is lessened by the suite of solutions, which offer you advance cash at a reasonable rate and monthly payments.

1. OCBC Al-Amin Cash Financing-I

Image source: OCBC Bank

One of OCBC’s personal loans that complies with Shariah law is called OCBC Cash Financing-i. The loan is based on the Bai’ al-‘Inah system, in which loans are disbursed based on the sale and purchase of goods. This personal financing is well-structured for various needs and does not require a guarantor or collateral. With a loan tenure of three to ten years, one may receive credit limit ranging from RM 6,000 to a maximum of RM 20,000.

2. OCBC Corporate Cash-I

Image source: Yahoo UK

Only OCBC’s employees have access to OCBC Corporate Cash-I. There is no requirement for a guarantor or collateral with this Shariah-compliant loan. Amounts ranging from RM 6,000 to RM 150,000 can be financed, with repayment terms of 3 years and extended financing tenure of up to 10 years. There is a balance transfer option with this loan.

Interest Rates for OCBC Bank Personal Loans

Image source: Access Wealth

1. OCBC Al-Amin Cash Financing-I

Effective interest rate on OBCB Cash Financing-i range from 12.98% to 25.81%, which is not too awful for an unsecured personal loan.

2. OCBC Corporate Cash-I

Effective interest rates on OBCB Cash Financing-i range from 11.13% p.a. to 14.51% p.a., which is not too awful for an unsecured personal loan.

Eligibility to Apply 

A minimum monthly income of RM 2,000 is required of the applicant. Both Malaysian citizens and foreigners with permanent residence visas in Malaysia are eligible for this loan. The minimum age for applicants is 21, and they cannot be older than 60 at the end of the loan term.

Documents Needed 

Image source: Shipping Solutions

Customers must be Malaysian citizens or Permanent Residents with a gross monthly income of at least RM2,000 in order to apply for personal loans. A permanent job is also necessary.

Required paperwork for application:

  • Authentic Malaysian IC photocopy (front and back)
  • either a photocopy of a one-month pay stub or a one-year EPF statement
  • latest income tax statement

Fees and Charges 

Image source: Canstar Blue

1. OCBC Al-Amin Cash Financing-I

There are no processing fee, stamping, or legal fees associated with this loan because the financial institution will cover such costs. A 1% annual penalty is applied to any late payments. Early settlement will result in a 2.5% penalty depending on the sum or RM 150, whichever is higher. GST of 6% is applied to all service fees.

2. OCBC Corporate Cash-I

Processing fees are not a part of the loan. A 1% annual penalty will be applied to any late payments.

OCBC Al-Amin Cash Financing-I Frequently Asked Questions 

Do I receive credit for the entire loan amount in my selected bank account?

NO. A one-month advance instalment will be subtracted from the total financing sum. This will assist the consumer in avoiding paying the first instalment after the due date and incurring a Late Payment fee. However, starting with the second month, the customer must make arrangements for and assure prompt payment of all following monthly payments.

What happens if I pay more than the monthly payment?

Any payment that exceeds the required monthly instalment will be considered an advance payment. These payments are non-reducing and non-redrawable and do not affect the total profit payable in any manner.

What if I settle the loan completely before it reaches maturity?

The Bank will provide the customer an Ibra’ (rebate) if the Total Sale Price is fully paid before its maturity. However, if the settlement is completed within the first half of the Facility’s tenure, the Early Settlement Fee (if applicable) will be deducted from the refund. This fee consists of:

2.5% of the outstanding balance or RM150, whichever is larger, is the early settlement cost.

OCBC Corporate Cash-I Frequently Asked Questions 

Do I receive credit for the entire loan amount in my selected bank account?

No, a two-month advance instalment will be subtracted from the total loan sum. After that, salary deductions will be used to pay the monthly instalment amounts.

What would cause the bank to stop allowing customers to participate in Corporate Cash-i?

For any reason, including but not limited to:

When the instalments are no longer paid through direct pay deduction by your current employer, including

1. When your employment with the present employer ends; and/or

2. Regarding your decision to stop the direct monthly salary deduction

What if I settle the loan entirely before it reaches maturity?

The Bank will provide the customer an Ibra’ (rebate) if the Total Sale Price is paid in full prior to its maturity. However, the Early Settlement Fee will offset such a reimbursement (if any)

Settlement before the end of facility tenure may occur in the following circumstances, but is not limited to them:

  1. Termination or cancellation of the Facility before its maturity date. 
  2. Early settlement or early redemption, including when resulting from prepayments.
  3. Full settlement through restructuring of the Facility. 
  4. Settlement following an event of default. 
  5. Settlement after an event of default.

If the sale price is paid in full before the maturity date, the branch must accept the early settlement payment in person.