Categories of Housing Loan

4 Main Categories of Housing Loan

The following we will share with you the 4 main categories of Housing loan types in Malaysia. Each of these have their own different functions. Generally, banks housing loan packages fits into this categories. In order to choose the most suitable bank's package it will be good to know the difference between this categories. This is the most basic thing that you need to know before choosing a Home Loan:-

CONVENTIONAL HOUSING LOAN
•Monthly repayment of facility at stipulated date
•Payment of Principal and Interest
•Monthly Rest
•Have to inform bank on prepayment and withdrawal
•Half Yearly or Yearly Loan Statement
•Not so Flexible

OVERDRAFT
•Interest Calculated on daily basis
•Only pay interest until facility is prepaid
•Amount Prepaid can be withdraw anytime
•Cheque Account Facility
•Monthly Statement
•Interest Rate is higher than normal loan

FIXED LOAN
•Fixed tenure, interest rate and installment every month.
•Banks offered under Islamic Banking under Syariah Principles.
Higher Interest Rate than normal loan.
•Insurance Companies also offering under their Fixed Rate Package

FLEXI-LOAN
•Combination of Term Loan and Overdraft
•One Account
•Monthly installment to be paid
•Interest Rate calculated on Daily Basis
•Interest Rate higher than normal loan
•Can Make extra Payment anytime to reduce Principal and save interest. Extra Payment can be withdraw anytime.
•Utilization of Cheque Account, ATM and Internet Banking
•Monthly Statement
•Set-Up Fee of RM200 and Monthly maintenance Fee of RM10.