One Account to Rule Them All

One Account to Rule Them All

 

Do you find yourself in a daze when it comes to financing or paying off your debts? If you answered YES, we have a solution for you to ease your finances all in ONE channel with your home loan. Yes, say goodbye to headaches and multiple interest rates on different loans. You can now have it all in just ONE place!

 

Introducing the one account to rule them all - Alliance One Account!

Did you know that the total outstanding household debt stood at a whopping of RM1,086.2 billion as at end-2016?! (Financial Stability and Payments Report 2016 by Bank Negara Malaysia) 

What does that even mean? It means that lots of folks are in debt which could lead to a bad credit score if it is not managed responsibly. It’s always good to know the difference between good credit score vs bad credit score.

Alright, let’s focus on how Alliance One Account can help you and start managing your finances better by improving your Debt Service Ratio (DSR) with the flexibility to structure between Term Loans or an Overdraft Account according to your preference.

 

Overdraft Accounts and Term Loans: What is an Overdraft Account, how does it work and how can it help you?

With today’s living cost and hike in prices on most items such as fuel, houses and cars in Malaysia, there may come a time when you run out of funds and your bank account gets barren and you can’t even get a decent meal? That is when the overdrafts come in handy. 

Overdrafts are great for both short term and long term too! So it eases your worries such as making equipment purchases or operating expenses. Alliance One Account overdraft is an evergreen credit facility till you reach the age of 60!

Also, with its revolving nature, you can keep on borrowing the money and repay it at the same time. BUT bear in mind that the bank performs an annual review based on your credit report to re-evaluate the applicant's overdraft amount limit within your borrowing period. This is the reason why overdraft is also known as the revolving line of credit.

 

What is a Term Loan, how does it work and how can it help you?

As the name suggests, the term loans are given for a medium to a long period of time which ranges between 35 years or till you reach the age of 70, whichever comes first.

 

How can Alliance One Account help you?

 

Okay, let’s just say you have a monthly income of RM8,000 and your "current financial situation" is shown in the table below:

 

BANK

LOAN

OUTSTANDING BALANCE

EFFECTIVE INTEREST RATE (p.a.)

MONTHLY INSTALMENT

A

HOME LOAN

RM350,000

4.67%

RM1,850

B

PERSONAL LOAN

RM50,000

20.00%

RM1,000

C

CAR LOAN

RM80,000

7.00%

RM970

 

D

CREDIT CARD

RM30,000

18.00%

RM1,500

 

 

TOTAL

RM510,000

 7.32%

RM5,320 (DSR: 67%)

 

With an ALLIANCE ONE ACCOUNT

HOME LOAN

Up to 90% Margin of Financing!

Example:

  •       Property Market Value = RM 1,000,000
  •       Maximum Loan Amount:

✅ Overdraft (70%) = RM700,000

✅ Term Loan (20%) – RM200,000

ALLIANCE ONE ACCOUNT SIMULATION

Home Loan

+

Personal Loan

+

Car Loan

+

Credit Card

Total Outstanding Balance to be consolidated = RM 510,000

  •                Applied Overdraft Limit:

RM350,000 + RM50,000+ RM80,000 + RM30,000

RM510,000

 

  •       Interest Rate:

Base Rate + 3.06% p.a. = 6.88% p.a.

 

Min. Monthly repayment = RM2,924*

 

*Based on the daily calculated interest rate

= Utilized amount of overdraft facility * (6.88% * No. of days in the month / 365 days)

 

 

As a result,

Save on interest = (7.32%)% – 6.88% = 0.44%

Pay Less per Month = RM5,320 – RM2,924 = RM2,396 (DSR improved by 45%)

What are the requirements?

Alliance One Account is open to Malaysians/PR/Foreigners* who have an existing home loan and to new customers of Alliance Bank.

Here is the list of requirements for Alliance One Account (AOA):

  •       Applicant must have an existing property in Malaysia
  •       Age: Minimum 21 years old
  •       Monthly Income: minimum RM4,000

 

Want to know the nitty gritty details? Get in touch with Alliance Bank and they'll walk you through the benefits! 

 

Disclaimer:

Information provided in the table above does not constitute an offer of finance. Any loan request is subject to assessment against Alliance One Account's lending criteria. Fees and charges may apply. This calculation does not take into account any fees, charges or government taxes which may apply to either the calculation of the loan amount or the monthly repayments, such as GST. (where applicable).

 

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