Everything You Need To Know About Public Bank Personal Loan

According to shareholder funds, Public Bank is the largest domestic bank in Malaysia. Small to medium-sized businesses and retail clients are its main targets. Teh Hong Piow, the then-general manager of Malayan Banking, formed the bank in 1966. In 1967, the bank went public on the Malaysian Stock Exchange. 

Customers can get loans from Public Bank to buy a house, a car, or start a business. Currently, Public Bank is promoting a wide variety of loans. But what caught my eye were BAE Personal Financing-I and BAE AG Personal Financing under Public Bank Islamic.

Image source: Personal Loan Malaysia

An unsecured personal financing product called Public Islamic Bank BAE Personal Financing-i is made available to government agency employees. The lending amount for this personal loan ranges from RM 5,000 to RM 150,000. Additionally, it offers great financing and a comparatively modest installment.

Public Islamic Bank BAE Personal Financing-i

Image source: Pinjamin Peribadi

The foundation of BAE Personal Financing-I is the Bai Al-Inah idea, which refers to a financing facility with underpinning buy and sell transactions between the lender and the consumer. The idea is founded on Shariah and involves a financier purchasing an asset from a consumer on an immediate basis.

The financier’s price is considered the disbursement made under the facility. A deferred payment basis is then used to sell the asset to the customer; the price is then paid in installments.

Only employees of the public sector working for the federal and state governments are eligible for this personal loan. The minimum and maximum loan terms are 2 and 10 years, respectively. Customers who apply for a loan may be eligible for loans ranging from RM 5, 000 to RM 150 000, depending on their eligibility. Public Bank will collect the monthly loan payment from the customer’s wages in order to simplify the payment process.

Customers benefit greatly from Public Bank’s rapid loan amount up to RM 150,000 and hassle-free payment options for loan period ranging from 2 to 10 years because these loans are immediately taken from salary deduction by fixed monthly repayment thanks to a specific arrangement with their employers.

Another crucial aspect is that no guarantor is necessary to apply for a loan. Additionally, there is no early termination cost if borrowers intend to repay the loan in full (please double-check during the period of your loan application).

Requirements to Apply

Anyone employed in the public sector or on the panel list of GLCs is the sole group eligible for this loan. All federal and state government employees are eligible to apply for the loan.

Public Bank has a fairly open process for loan applications in order to meet the convenience of personal financing with BAE Personal Financing-I needs of its customers. Customers must be Malaysian citizens, aged 20 or younger and less than 58, and have a steady job with at least three years of service in one of the Public Bank’s approved agencies.

Additionally, the applicant must make at least RM 3,000 per month in monthly salary.

The procedure of loan approval takes a few business days. Your chosen Public Bank account will receive the transferred borrowed funds once they have been approved.

Documents Needed to Apply 

For salaried personnel, you must submit a copy of your most recent pay stub for the previous three months, your most recent EPF statement, or both.

Other documents needed are the latest 3-month savings/current account statement/passbook, employer confirming position, and most recent EA, or Latest 1-year tax returns and tax receipts

For clients who are self-employed, you must provide:

the most recent 3-month savings/current account statement/passbook, the most recent EPF statement, the most recent 1-year tax returns, and tax receipts, a copy of the business registration certificate, and the most recent salary slips spanning three to six months.

Fees and Charges

  • Processing fee: RM10 each
  • Early Termination fee: 1% per year on the arrears of outstanding for each facility (daily rest basis)
  • Late payment charge: 1% per year on the outstanding
  • For example, the fee is calculated as follows:
  • Late payment charge = Outstanding financing installment X 1% X number of days outstanding.

Can I pay off my Personal Financing-i loan from Public Bank BAE early?

Yes, you can do that since there is no penalty for paying off your personal loan before it settles.

The remaining unearned profit charges will also be refunded by Public Islamic Bank as a bonus.

If I’m blacklisted, are I still eligible to apply for Public Bank BAE Personal Financing-i?

Depending on your credit history with other financial institutions, as all of this information (current debts for credit cards, personal loans, mortgages, and auto loans) will be recorded in CCRIS/CTOS (a system that collect credit information on borrowers, not blacklisting them).

The best course of action would be to change the habit and start making your payments on time in order to avoid more difficulties if you have bad credit because of irregular payments.

If you can demonstrate that you are managing your own finances rather than taking on extra debt, Public Islamic Bank is more likely to approve your Public Bank BAE Personal Financing-i application.

Do I require a Takaful policy to cover this personal Islamic loan?

Image source: HOI Insurance & Takaful

You are urged to purchase a Takaful policy from Takaful Ikhlas Bhd or AIA Public Takaful Berhad to cover the remaining loan sum for this Islamic personal financing in the case of your passing or being totally and permanently disabled.

This Takaful insurance is a single contribution that, upon distribution, is deducted from the agreed financing amount.

Pre-existing conditions are not covered, though, so be sure to get your health examined!