Friday, August 7, 2009

Bank Loan

We went to sign the letter of acceptance with EON bank for their Super Easi Flexi Loan. Apparently, one has to apply for a current account with this loan and minimum amount to open an account is RM500. Some "hidden cost & procedures" that we have discovered with EON's loan:

- RM10 monthly fee will be charged for each current account (RM3600 gone into thin air for a 30 years loan)
- Since you have a current account, most probably you want to view your transaction online. Then you need to apply an ATM card which charges RM8/ year
- Stamp duty of RM10 (one time deal)
- You are forced to apply for their credit card. It is stated in the loan offer letter. I think this is really unethical. How can you literally force people to apply for a credit card?
- You need to sign a blank form for Uni Asia fire insurance application. In case the developer (or you) fails to renew the fire insurance, they will "apply" the insurance for you and charge to your loan.
- MRTA charges go into Term Loan which you must start paying once loan takes into effect (Not when the house is completed)

We should have check out AmBank's loan offerings. Nevertheless, we still signed the loan offer letter, haha.


  1. Erm, prsonally, i do not view it as a hidden cost because when we sign the agreement, we must need to inquire every details of the loan. We do not sign blindly, if you calculate properly, you will able to save a lot of interest payment than what you are paying for normal loan. Please do the calculation. Anyway, it is really a good information for all the buyer.

  2. glad I took my loan with AmBank. interest rate's BLR-2.2%pa, MRTA waived, simple straightforward HL so no need for a current account, and no need to take up any credit cards either.