Product Disclosure Sheet- Vehicle Financing-i - Bank Islam Malaysia

Product Disclosure Sheet- Vehicle Financing-i PRODUCT DISCLOSURE SHEET

Bank Islam Malaysia Berhad

(Read this Product Disclosure Sheet before you decide to accept the Vehicle Financing-i. Be sure also to read the terms in the letter of offer. Seek clarification from your institution if you do not understand any part of this document or the general terms)

Vehicle Financing-i Date : ____________________________

1. What is Bank Islam Vehicle Financing-i facility?

 Bank Islam Vehicle Financing-i facility is an unsecured/secured term financing which is calculated based on a fixed rate. Vehicle Financing-i allows you to own your dream vehicle under the contract of Bai Bithaman Ajil. 2. What is the Shariah concept and contract applicable?

 

Application of Shariah concept in this product is illustrated as follows: The illustration of the product structure is depicted below:

i.

Bank (thru Dealer) will appoint the customer as Bank purchasing agent under the contract of Wakalah (agency). The customer purchases the vehicle from the dealer on behalf of the Bank. ii. Bank sells the vehicle to the customer under the contract of Bai Bithaman Ajil (deferred payment sale) and the customer pays in instalment the indebtedness created from the sale. iii. The customer pledged the vehicle as security under the contract of Rahn. (collateral). 3. What do I get from this product?



Total financed

amount

The maximum margin of financing is up to 90% for standard application and up to 100% for special package i.e. Vehicle Financing Gradhitz-i. The final financing amount approved will be based on the Bank’s credit evaluation.

Page 1 of 5 Product Disclosure Sheet – Vehicle Financing-i (Sales) Bank Islam Malaysia Berhad Version 2.1/2013



Tenure

Tenure of financing is up to 9 years.



Profit rate

The fixed rates for Vehicle Financing-i: A. Tier 1 Rates for VF: National Vehicle

Non National Vehicle

Credit Scoring (Grade)

Margin Of Financing

Financing Rate

Financing Rate

1 to 3

Up to 100%

2.78%

2.70%

RM50,000-00 and above

RM70,000-00 and above

National Vehicle


Margin Of Financing

Financing Rate

Financing Rate

Up to 90%

2.88%

2.78%

Above 90%

2.98%

2.88%

National Vehicle


Margin Of Financing

Financing Rate

Financing Rate

Up to 90%

3.15%

3.15%

Above 90%

3.25%

3.25%

Minimum Financing Amount

A. Tier 2 Rates for VF :

Credit Scoring (Grade) 4 to 6

B. Tier 3 Rates for VF :

Credit Scoring (Grade) 7 to 8 4. What are my obligations?



Monthly amount.

payment

The monthly payment is calculated in accordance to the formula below: Fixed rate: ((P x R x T) + P) / t, where: P = Financing Amount Approved R = profit rate per annum T = Tenure of facility in years t = Tenure of facility in months



Customer is obliged to pay the monthly payments until full settlement of the financing. Should the financing tenure be extended beyond the retirement age, the customer is still obliged to pay the monthly payments. However, the customer may opt at any time to fully settle the financing. Page 2 of 5 Product Disclosure Sheet – Vehicle Financing-i (Sales) Bank Islam Malaysia Berhad Version 2.1/2013

5. What are the fees and charges that I have to pay?



Stamp duties (as per Stamp Act 1949 (Revised 1989)). i. Without guarantor RM20 (Letter of Offer RM10.00 and BBA Agreement RM10.00) ii. With guarantor RM30 (Letter of Offer RM10.00 and BBA Agreement RM20.00)

6. What if I fail to fulfill my obligations?



It is hereby agreed that the Customer shall pay the Bank late payment charges by way of ta'widh (compensation) as follows: a) Before maturity of the Facility: A sum equivalent to one per centum (1%) per annum on overdue instalment(s) until date of full payment; b) After maturity of the Facility: A sum equivalent to the prevailing daily overnight Islamic Interbank Money Market Rate on outstanding balance i.e. outstanding Selling Price less ibra’ (if any); c) Post Judgment Debt: A sum equivalent to the prevailing daily overnight Islamic Interbank Money Market Rate on basic judgment sum calculated from judgment date until date of full payment. PROVIDED ALWAYS that the above said ta’widh (compensation) rates may be varied by Bank Negara Malaysia (BNM) from time to time and shall be applied in such manner as approved by BNM.



Following an Event of Default, the Bank may combine, consolidate or merge all or any of the Customer's accounts with the Bank and the Bank may set-off or transfer any sum standing to the credit of any such accounts in or towards the satisfaction of any of the Customer's liabilities to the Bank under this Agreement.



Legal action may be taken if you fail to respond to the reminder notice.

 Legal action against you may affect your credit rating leading to your future credit assessment being more difficult or expensive to you.

 In the event of default in payment for more than 2 months, the Bank has the right to take possession of the vehicle and sell the vehicle to obtain proceed to set off the outstanding balance of indebtedness. If there is a shortfall, the Bank will recourse the difference from you and if there is surplus from the sale, the Bank shall refund it to you. 7. What if I fully settle the financing before its maturity?



In the event of Early Settlement of the Financing, the Bank undertakes to grant to the Customer an Ibra’ (rebate) which is equivalent to the deferred Profit at the point of settlement. Ibra’ (rebate) Formula: Ibra’ /rebate on early settlement = Deferred Profit. Note: Deferred Profit = Total Contracted Profit – Accrued Profit. i.

Total Contracted Profit = Selling Price – Purchase Price (or Financing Amount). Page 3 of 5 Product Disclosure Sheet – Vehicle Financing-i (Sales) Bank Islam Malaysia Berhad Version 2.1/2013

ii.



Accrued Profit is calculated based on Effective Profit Rate of the outstanding Purchase Price (or Financing Amount) being disbursed (or utilized).

Early Settlement: “Early Settlement” means Settlement prior to the expiry of the Financing tenure by the Customer including, but is not limited to the following situations: i. Customers who make an early settlement or early redemption, including those arising from prepayments; ii. Settlement of the original Financing contract due to financing restructuring exercise; iii. Settlement by Customers in the case of default; and/or iv. Settlement by Customers in the event of termination or cancellation of Financing before the maturity date. “Early Settlement Amount” means Outstanding Selling Price minus ibra’ on Early Settlement minus undisbursed (or unutilized) amount minus advances by the customer plus temporary excess plus advances by the Bank plus ta’widh plus Early Settlement Charges”. Note: i. Outstanding Selling Price = Outstanding Purchase Price (or Financing Amount) + Profit Overdue + Deferred Profit ii. Advances by the Bank which includes takaful contribution / insurance premium, legal fees, quit rent etc. iii. Early Settlement Charges means actual costs allowed by Shariah Supervisory Council of the Bank.

8. Do I need a guarantor or collateral?



Requirement for guarantor is applicable on case to case basis. The financed vehicle to be pledged as collateral.

9. What do I need to do if there are changes to my contact detail?



It is your responsibility and important for you to immediately inform us of any change in your contact details to ensure that all correspondences reach you in a timely manner.

10. Where can I get assistance and redress?



If you have difficulties in making the monthly payments, you should contact us earliest possible to discuss the payment options. You may contact us at: i.

Contact Centre Department Bank Islam Malaysia Berhad th 17 Floor, Menara Bank Islam, No. 22, Jalan Perak, 50450 Kuala Lumpur. Tel: 03-26 900 900 Email: [email protected]

or

ii.

Our nearest Automobile Financing Centre or

iii.

Visit our website www.bankislam.com.my for more details




Alternatively, you may seek the services of Agensi Kaunseling dan Pengurusan Kredit (AKPK), an agency established by Bank Negara Malaysia to provide free services and money management, credit counseling, financial education and debt restructuring for individuals. You can contact AKPK at: Tingkat 8, Maju Junction Mall 1001, Jalan Sultan Ismail, 50250 Kuala Lumpur. Tel: 1-800-22-2575 Email: [email protected]



If you wish to complaint on the products or services provided by us, you may contact us at: Feedback Channel & Distribution Department (Jabatan Rangkaian & Pengagihan Maklum Balas) Level 18, Menara Bank Islam No 22, Jalan Perak 50450 Kuala Lumpur. Tel: 03-2782 1281/1284/1285 Fax: 03 2782 1337 Email: [email protected]



If your query or complaint is not satisfactorily resolved by us, you may contact Bank Negara Malaysia LINK or TELELINK at: Block D, Bank Negara Malaysia, Jalan Dato’ Onn, 50480 Kuala Lumpur. Tel: 1-300-88-5465 Fax: 03-2174 1515 Email: [email protected]

11. Other consumer Vehicle Financing packages available? 

None

IMPORTANT NOTE: LEGAL ACTION MAY BE TAKEN AGAINST YOU AND BANK MAY TAKE POSSESSION OF YOUR VEHICLE IF YOU FAIL TO PAY THE MONTHLY PAYMENT OF YOUR VEHICLE FINANCING-i FACILITY.

The information provided in this disclosure sheet is valid as at April 16, 2013.
