frequently asked questions (faqs) for latest … · frequently asked questions (faqs) no question...

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FREQUENTLY ASKED QUESTIONS (FAQS)

FAQ - Latest Update on Financial Deferment Package for Fixed Rate Financing-i Products

NO QUESTION ANSWER

1. It was previously announced that the 6-month payment deferment for fixed rate Islamic financing is automatic. Has there been a reversal in this decision?

The payment deferment is still automatic for Fixed Rate Financing-i Products, namely Personal Financing-i & Property Financing-i under Fixed Rate. What is required now is an additional step to comply with procedural requirements as announced by Bank Negara Malaysia (BNM) on 30 April 2020. This additional step is required to incorporate the changes to selling price, monthly instalments and tenure extension (if any) as a result of the deferment packages in the financing agreements.

2. Is there a change for customers to qualify for the Fixed Rate Financing-i Products payment deferment?

There is no change in the eligibility criteria for Personal Financing-i and Property Financing-i under fixed rate financing. For Personal Financing-i under Cooperative and Coshare schemes, there is an additional eligibility criteria:

i. Must not breach customer’s 60% total salary deduction due to the additional profit charge & deferred instalments that needs to be included in the instalment.

3. As it is already July, is there a change to the payment deferment period for these financing facilities?

There is no change in the payment deferment period, that is, it is effective for six (6) months starting from 1 April 2020 until 30 September 2020.

4. What is the overall process flow for opt-in cases under Personal Financing-i Mass

a. The Bank will send SMS to eligible customers on the revision to the terms of the deferment package and direct them to a dedicated landing page in the Bank’s website.

b. If customer is interested to continue with the deferment package, customer is required to complete and submit the Consent Form for Bank’s further action.

c. In the Consent Form, customers will need to agree to appoint Al Rajhi Nominee (Tempatan) Sdn Bhd (“ARNT”) to perform the commodity trading on their behalf. Customer will also need to agree to choose between the following two options:

i. Appoint ARNT to pay the 6 months instalments; OR

ii. Pay the 6 months instalments personally. If the Bank does not receive the payment amount within the stipulated time, this will be deemed that the customer has decided to opt-out from the deferment package.

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d. The Bank shall email to customer within 3 working days the exact changes on customer’s facility ie. the revised instalment & maturity date. If customer is agreeable with the changes, no further action is required.

e. Once the above is performed, the Bank will prepare a supplemental agreement which will be sent to customers via email. All the new terms shall be deemed to have been accepted by customers. Customers are to sign and return the supplemental agreement to the Bank within 14 days.

5. What is the overall process flow for opt-in cases under Personal Financing-i Coshare

a. The Bank will send SMS to eligible customers on the revision to the terms of the deferment package and direct them to a dedicated landing page in our website.

b. If customer is interested to continue with the deferment package, customer is required to complete the Consent Form and submit for Bank’s further action.

c. Other than the consent to be given to the Bank, Coshare Customers are required to provide March 2020 payslip

d. There will also a “Pengesahan Majikan” letter for Coshare Customers to complete. The Customer’s employer will provide consent to allow the revised installment from 1/10/2020 until the end of financing tenure to be deducted accordingly. Without this form Coshare Customer cannot participate in the deferment package

e. In the Consent Form, customers will need to agree to appoint Al Rajhi Nominee (Tempatan) Sdn Bhd (“ARNT”) to perform the commodity trading on their behalf. Customer will also need to agree to choose between the following two options:


ii. Pay the 6 months instalments personally once the funds have been transferred into your account. If the Bank does not receive the payment amount within the stipulated time, this will be deemed that the customer has decided to opt-out from the deferment package.

f. The Bank shall email to customer within 3 working days the exact changes on customer’s facility ie. the revised instalment & maturity date. If customer is agreeable with the changes, no further action is required.

g. Once the above is performed, the Bank will prepare a supplemental agreement which will be sent to customer via email. All the new terms shall be deemed to have been accepted by customers.

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Customers are to sign and return the supplemental agreement to the Bank within 14 days.

h. Concurrently, the Bank will refund all the salary deduction received during the deferment period to the respective Customer based on account number given by the Customer

i. Kindly take note that the salary deduction will continue after the deferment period

6. What is the overall process flow for opt-in cases under Personal Financing-i (Cooperative)

a. The Bank will send SMS to eligible customers on the revision to the terms of the deferment package and direct them to a dedicated landing page in our website.

b. If customer is interested to continue with the deferment package, customer is required to complete and submit the Consent Form for Bank’s further action.

c. In the Consent Form, customers will need to agree to appoint Al Rajhi Nominee (Tempatan) Sdn Bhd (“ARNT”) to perform the commodity trading on their behalf. Customer will also need to agree to choose between the following two options:


ii. Pay the 6 months instalments personally once the funds have been transferred into your account. If the Bank does not receive the payment amount within the stipulated time, this will be deemed that the customer has decided to opt-out from the deferment package.

d. Other than the consent to be given to the Bank, the customers are require to provide March 2020 and latest payslips for Cooperative to perform booking of revised installment in Angkasa system. The payslips must have “Cop Majikan” and signed by the respective government’s officer. This is crucial as Angkasa will not accept any payslip without this which might prevent from deduction for revised installment to commence

e. After the required documents have been completed and provided by customer, the Bank will determine the revised instalment after the deferment period and advise customers on the revised terms. Once confirmation is received then only the Bank will perform the commodity trading

f. The Bank shall email to customer within 3 working days the exact changes on customer’s facility ie. the revised instalment & maturity date. If customer is agreeable with the changes, no further action is required.

g. Once the above is performed, the Bank will prepare a supplemental agreement which will be sent to customer via email. All the new terms shall be

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deemed to have been accepted by customers. Customers are to sign and return the supplemental agreement to the Bank within 14 days.

h. Concurrently, the Bank will refund all the salary deduction received during the deferment period to the respective Customer based on account number given by the Customer

a. Kindly take note that the salary deduction will continue during the deferment period

7. Will there be any additional legal fees if a new agreement is required?

The Bank is not allowed to impose any additional charges, including legal fees, on the customers.

8. How would my Fixed Rate Financing-i Products monthly instalments change after the deferment period?

The Bank will inform each customer of the changes to his/ her Fixed Rate Financing-i Products financing payment schedule and instalment amounts respectively.

Product Tenure Instalment After Deferment Period

Personal Financing-i Mass Market

Extend for a further 6 months

Increase

Personal Financing-i (Cooperative and Coshare)

No extension

Increase

Property Financing-i under Fixed Rate

Extend for a further 6 months

Increase

Customers should weigh for themselves the pros and cons of deferring the payment, and pay particular attention to their ability to meet these payments after the moratorium. You should call or e-mail the Bank if you need more information, or if you need to discuss alternative payment arrangements.

9. Do I still have a chance to opt out of the deferment package now if I had not done so previously?

Yes. You can still choose to do so at this time by informing the Bank and resuming the monthly payments that you were making before the deferment period. See also response to Question 11 below.

10. What happens if I do not give my consent to the new terms by the stipulated time?

You will need to resume your monthly payments that you were making before the deferment period. See also response to Question 11 below.

11. What happens to the previously deferred instalments if I do not consent to the continuation of the

If you do not consent to participate and agree to the new terms by 17 August 2020, this will be deemed that you have decided to opt-out from the deferment package.

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six (6) months deferment package?

You will have to start making your current monthly instalment and then keep up with the normal monthly payments when they are due. The previously differed monthly instalments will also have to be settled accordingly so that you avoid having your account go into arrears and consequently incur charges for late payment and your CCRIS report being impacted. We are here to help should you foresee having difficulties catching up with your payments. Please contact our customer care consultants at 03-2332 6000 or e-mail to [email protected]

12. What would my Personal Financing-i Mass monthly payments look like before and after the 6 months deferment period?

Basic formula to calculate revised monthly instalment after deferment:

Monthly instalment before deferment

Monthly instalment after deferment

RM986 RM1,010 (RM24 increase)

a) (i) Total Additional Profit

(RM682 x 6) x 7% x 3 years = RM860

(ii) Additional Profit Distributed Every Month

RM860/36 = RM24

b) Monthly instalment after deferment period

RM986 + RM24 = RM1,010 This illustration is based on these assumptions:

The tenure is extended for 6 months.

Financing amount is RM50,000.

Total six 6 months principal amount is RM4,092.

Fixed profit rate is at 7.00% per annum. The profit rate remains the same throughout the tenure.

Original financing tenure is 6 years and customer has paid for 3 years.

Example above is for illustration purpose only to help customers to make informed decisions on whether the deferment package is appropriate for them.

Total 6 MonthsPrincipal Amount

x xRemaining

TenureContractedProfit Rate

Additional Profit on 6 MonthsPrincipal Amount Remaining Tenure

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Actual number may varies in the system due to truncation of decimal points and will be provided to customers upon agreeing to continue with the deferment package.

(Refer to Appendix 1 for Illustration)

13. What would my Personal Financing-i under Cooperative / Coshare scheme monthly payments look like before and after the 6 months deferment period?




RM986 RM1,207 (RM221 increase)

a) (i) Total six 6 months Instalments

Current Monthly Instalments X 6 months

RM986 X 6 = RM5,916 (ii) Six (6) months Instalments Distributed Every Month Total six (6) months Instalments / Remaining Tenure

RM5,916 / 30 = RM197

b) (i) Total Additional Profit

(RM682 x 6) x 7% x 2.5 years = RM716


RM716/30 = RM24

c) Monthly instalment after deferment period

RM986 + RM197 + RM24 = RM1,207 This illustration is based on these assumptions:

No change in original tenure.


Total six (6) months principal amount is RM4,092.


x xRemaining



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Example above is for illustration purpose only to help customers to make informed decisions on whether the deferment package is appropriate for them. Actual number may varies in the system due to truncation of decimal points and will be provided to customers upon agreeing to continue with the deferment package.


14. What would my Property Financing-i under fixed rate monthly payments look like before and after the 6 months deferment period?




RM3,472 RM3,483 (RM11 increase)

a) (i) Total Additional Profit

(RM2,819) x 5% x 27 years = RM3,806


RM3,806/324 months = RM11

b) Monthly instalment after deferment period

RM3,472 + RM11= RM3,483 This illustration is based on these assumptions:

The tenure is extended for 6 months.


The total six (6) months principal amount is RM2,819.



Example above is for illustration purpose only to help customers to make informed decisions on whether the deferment package is appropriate for them. Actual number may varies in the system due to truncation of decimal points and will be provided to


x xRemaining



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NO QUESTION ANSWER

customers upon agreeing to continue with the deferment package.


New updates pursuant to Bank Negara Malaysia’s announcement on 30 April 2020. The above information is correct and updated as at 4 June 2020 and will supersede information related to all Fixed Rate Financing-i Products in questions 14, 43 and Appendix 2 in the “FAQs – ADDITIONAL MEASURES TO ASSIST CUSTOMERS AFFECTED BY THE COVID-19 PANDEMIC” dated 9 April 2020. Kindly contact: Customer Care Consultant Tel: 03-2332 6000 / E-mail: [email protected] Website www.alrajhibank.com.my

mailto:[email protected]

http://www.alrajhibank.com.my/

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Appendix 1

PeriodNormal Scenario

(Without Deferment)Balance Outstanding is Distributed Throughout Remaining Tenure

1 – 36 months

RM986

RM986

37 – 42 months(Deferment Period)

RM0 (Based on deferred principal of RM4,094, the additional cost is RM860 which will be paid

throughout the remaining tenure)

43 – 72 months 43 – 78 months

RM1,010 (RM24 increase)73 – 78 months

Total Amount Payable RM71,000 RM71,860 (RM860 increase)

Total Principal Payment RM50,000 RM50,000 (remain unchanged)

Al Rajhi Payment Deferment Package (Personal Financing-i Mass)Impact to Instalment Payment & Total Amount Payable

Assumption Financing Details

Financing Amount RM50,000

Original Tenure 6 Years (72 months)

Profit Rate 7.00%

Monthly Instalment RM986

Setting Defaulted

The above illustration of an Islamic personal financing/auto financing is based on these assumptions:

a) The tenure is extended by 6 monthsb) Financing amount is RM50,000c) Flat profit rate is at 7.00% per annum. The profit rate remain the same throughout the tenure.d) Original financing tenure is 6 years and customer has paid for 3 years.e) Actual number may varies in the system due to truncation of decimal points

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Appendix 2



1 – 36 months

RM986

RM986


RM0 (Based on deferred principal of RM4,092, the additional cost is RM716 which will be paid


43 – 72 months

43 – 72 months

RM1,207(RM221 increased due to payment of six months deferred instalments + additional

profit charged during deferment period)

Total Amount Payable RM71,000 RM71,716 (RM716 increase)


Al Rajhi Payment Deferment Package (Personal Financing-i – Cooperative/ Coshare)Impact to Instalment Payment & Total Amount Payable




Profit Rate 7.00%

Monthly Instalment RM986

Setting Defaulted

The above illustration of an Islamic personal financing under Cooperative/ Cohshare scheme is based on these assumptions:

a) No extension in tenureb) Financing amount is RM50,000c) Flat profit rate is at 7.00% per annum. The profit rate remains the same throughout the tenure.d) Original financing tenure is 6 years and customer has paid for 3 years.e) Actual number may varies in the system due to truncation of decimal points

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Appendix 3



1 – 36 months

RM3,472

RM3,472


RM0 (Based on deferred principal of RM2,819, the additional cost is RM3,806 which will be paid


43 – 360 months 361 – 366 months

RM3,483 (RM11 increase)361 – 366 months

Total Amount Payable RM1,250,000 RM1,253,806 (RM3,806 increase)


Al Rajhi Payment Deferment Package (Property Financing-i under Fixed Rate)Impact to Instalment Payment & Total Amount Payable




Profit Rate 5.00%

Monthly Instalment RM3,472

Setting Defaulted

The above illustration of an Islamic personal financing/auto financing is based on these assumptions:

a) The tenure is extended by 6 monthsb) Financing amount is RM500,000c) Flat profit rate is at 5.00% per annum. The profit rate remain the same throughout the tenure.d) Original financing tenure is 6 years and customer has paid for 3 years.e) Actual number may varies in the system due to truncation of decimal points

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