personal loan

The banking system, comprising commercial banks, investment banks, and Islamic

banks, is the primary mobiliser of funds and the main source of financing to support

economic activities in Malaysia.

A commercial bank is a type of financial intermediary and a type of bank. Commercial

banking is also known as business banking. It is a bank that provides checking

accounts, savings accounts, and money market accounts and that accepts time

deposits. Commercial banking may also be seen as distinct from retail banking, which

involves the provision of financial services direct to consumers. Many banks offer both

commercial and retail banking services.

Islamic bank refers to a system of banking or banking activity that is consistent with the

principles of Islamic law (Sharia) and its practical application through the development

of Islamic economics. Sharia prohibits the payment of fees for the renting of money

(usury) for specific terms, as well as investing in businesses that provide goods or

services considered contrary to its principles (forbidden). While these principles were

used as the basis for a flourishing economy in earlier times, it is only in the late 20th

century that a number of Islamic banks were formed to apply these principles to private

or semi-private commercial institutions within the Muslim community.

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To know about how the financial institutions in Malaysia managing their services.

To explore the application on ratios in regular savings, simple and compound

interest especially in personal loan.

Construct visual representation of data and communicate findings through logical

and critical analysis of information

Make meaningful and rational inferences and judgments based on knowledge of

ratio

Planning budget proposal for monthly and annual expense based on monthly

income.

To enable student to write a complete report.

Manage data in a systematic manner so as to process and display information

discreetly and meaningfully

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MONTHLY INCOME

MINISTRY OF EDUCATION

Name :

Salary Number : 84052745

I/C Number :

Payment Centre : 01554 Sek. Keb. Sungai Dua

MONTHLY INCOME AMOUNT(RM)________

Basic Salary 1, 750.00

House Allowance 300.00

Government Service Allowance 300.00

Transportation Allowance 150.00

Total Monthly Income 2, 500.00

Account number: 159074894729

The table above shows the monthly income or salary. The basic salary is RM 1,750, the

house allowance is RM 300, the government allowance is RM 300 and the

transportation allowance is RM 150. Hence the total monthly income is RM 2500.

MONTHLY EXPENSES

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ITEMS MONTHLY EXPENSES

(RM)

ANNUAL EXPENSES

(RM)

House Rent 300 3600

Car Loan 250 3000

Foods 450 5400

Bills 160 1920

Insurance 70 840

Parents 150 1800

Personal Spending 200 2400

Saving 300 3600

TOTAL EXPENSES ; 1,880 22, 560

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The table and charts show the money spent for different types of item such as

house rent, car loan, foods, bills, insurance, parents, personal spending and saving.

The trend indicates that the large money spent for foods about 450 per month or about

24%.

About RM 300 per month or 16% spent for house rent and saving. The spent for

both item are secondly large. Saving is very important in our life. About 13% or RM 250

per month spent for car loan payment. It is thirdly large spent. Besides that, RM 200 per

month or 11% spent for personal spending such as accessory, medicine and many

more.

Furthermore, RM 160 per month or 8.1 % spent for the bills like as water bill,

electric bill and phone bill. 7.9% or RM 150 per month spent for parents. It was to

appreciate and thankful to them. The smallest spent about 4% or RM 70 per month was

for insurance. It was very importance for our future life.

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PERSONAL LOAN BUDGET

MONTHLY PERSONAL LOAN

BUDGET (RM)

ANNUAL PERSONAL LOAN

BUDGET (RM)

Total Monthly Income – Total Monthly

Expenses= Monthly Personal Loan

Budget

RM 2,500 – RM 1,880 = RM 620

Total Annual Income – Total Annual

Expenses = Annual Personal Loan

Budget

RM 30,000 – RM 22, 560 = RM 7440

TOTAL MONTHLY PERSONAL LOAN

BUDGET = RM 620

TOTAL ANNUAL PERSONAL LOAN

BUDGET = RM 7,440

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FORMULA ON HOW TO CALCULATE PERSONAL LOAN REPAYMENT

INCOME PER MONTH RM2500.00

RATE OF INTEREST (Based on the bank interest)

PAYMENT PERIOD 15 YEARS(Depends on the bank schemes)

AMOUNT OF LOAN RM50,000

AMOUNT OF INTEREST

total

amount of interest

AMOUNT HAVE TO PAY Amount of loan + Amount of interest = Amount Have

To Pay

MONTHLY PAYMENT

=monthly payment

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BANK RAKYAT


RATE OF INTEREST 5.80%

PAYMENT PERIOD 15 YEARS

AMOUNT OF LOAN RM50000

AMOUNT OF INTEREST

RM43500

AMOUNT HAVE TO PAY RM50000 + RM43500= RM93500

MONTHLY PAYMENT

= RM520

We must pay RM520 per month with Bank Rakyat

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CIMB BANK

INCOME PER MONTH RM2500




AMOUNT OF INTEREST

50000 15= RM37425

AMOUNT HAVE TO PAY RM50000 + RM37425=RM87425

MONTHLY PAYMENT

=RM486

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We must pay RM486 per month with CIMB bank

BANK SIMPANAN NASIONAL




AMOUNT OF LOAN RM50000.00

AMOUNT OF INTEREST

50000 = RM26250.00

AMOUNT HAVE TO PAY RM50000 + RM26250= RM76250.00

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MONTHLY PAYMENT

= RM 423.60

WE MUST PAY RM423.60 PER MONTH

PUBLIC BANK





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AMOUNT OF INTEREST

50000 15= RM25500.00

AMOUNT HAVE TO PAY RM50000 + RM25500=RM 75500.00

MONTHLY PAYMENT

= RM 419.44

WE HAVE TO PAY RM 419.44 PER MONTH

BANK ISLAM

INCOME PER MONTH RM 2500.00



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AMOUNT OF LOAN RM50000.00

AMOUNT OF INTEREST

50000 15= RM 27000.00

AMOUNT HAVE TO PAY RM 50000+ RM 27000= RM 77000.00

MONTHLY PAYMENT

= RM 427.77

WE HAVE TO PAY RM 427.77 PER MONTH

BANK

RATE OF

INTEREST

(%)

REPAYMENT

PERIOD

(RM)

AMOUNT OF

INTEREST

(RM)

AMOUNT

THAT HAVE

TO BE REPAY

(RM)

MONTHLY

REPAYMENT

(RM)

BANK 5.80% 15 years RM 43500 RM 93500 RM 520.00

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RAKYAT

CIMB BANK 4.99 % 15 years RM 37425 RM 87425 RM 486.00

BANK

SIMPANAN

NASIONAL

3.50 % 15 years RM 26250 RM 76 250 RM 423.60

PUBLIC

BANK

3.40 % 15 years RM 25500 RM 75500 RM 419.44

BANK

ISLAM

3.60 % 15 years RM 27 000 RM 77 000 RM 427.77

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The graph shows that Bank Rakyat has the highest rate of interest while Public Bank has the lowest rate of interest

The graph shows that Bank Rakyat has the highest total amount of interest while Public Bank has the lowest total amount of interest

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The graph shows that Bank Rakyat has the highest total amount that have to repay while Public Bank has the lowest total amount that have to repay

The graph shows that Bank Rakyat has the highest monthly repayment while Public Bank has the lowest monthly repayment

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BANK

RATE OF

INTEREST

(%)

REPAYMENT

PERIOD

(RM)

AMOUNT OF

INTEREST

(RM)

AMOUNT

THAT HAVE

TO BE

REPAY

(RM)

MONTHLY

REPAYMENT

(RM)

PUBLIC

BANK

3.40 % 15 years RM 25500 RM 75500 RM 419.44

Based on our researched and calculation, we have made our final decision and agree to

choose Public Bank scheme loan as our personal loan. It gives us more benefits than

other bank. Why do we chose Public Bank scheme loan?

First of all, the Public Bank scheme loan gives us the lowest rate of interest. The

rate of interest is only 3.40%. the total amount of interest for 15 years is RM 25500. It is

the lowest compare with the other bank. Therefore the amount that we have to pay back

is about RM 75500.

Furthermore, after we found that we only have to pay RM 419.44 per month. It was

affordable according to our personal loan budget. With the lowest payment, it can less

our burden when paying the loan each month. Our personal loan budget is RM 620.

Therefore, we could have a balance about RM 200. Hence, we can use this RM 200 as

our monthly saving.

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BY : NOR NADIA BINTI GHAZALI

In this assignment, we were given a task to plan a budget proposal for monthly

and annual expenses based on monthly income and relevant deductions for making a

personal loan. We need to identify at least five banks whether from Islamic or

Conventional Financial Institutions and find out the various offers given by the Financial

Institutions. After that, we must make a comparison between the banks before deciding

the best bank to make a personal loan.

Actually, I not understand better about this assignment. After have some

planning, I began by reading the notes that we get from our lecturer, Mr. Gan during the

class session. From the notes, I can understand what we need in the assignment. I also

ask to the seniors about this assignment to improve our understanding.

We also went to the library and served the internet to find some additional

information. Although it was very difficult task for new students like us, it gave us an

important experience in finding information. At the end, we were very happy and grateful

as we had completed our assignment successfully on the right time. It showing our

courage and patience to fulfill the task given. Thank you.

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BY : SYAZA BINTI MAHADHIR

Thanks to God for giving me the opportunity to finish up this assignment. During

made this assignment, I can see a lot of thing that I not see before. From the beginning,

I try hardly to finish up this assignment together.

We can learn a few new skills to solve the mathematics problem especially how

to calculate the personal loan bank. Moreover, I get a lot of tips how to learn

mathematics subject successful. I feel very happy and study with more better.

Besides that, during the assignment was running, I also got the difficulty to find

the information and other reference materials about the personal loan. I need to go to

any nearer bank in my hometown to get the pamphlet and related information. about

the personal loan bank schemes. I also had some conversation with the bank officer to

know deeply about the personal loan offered.

From the Short Course Work, I got many knowledge and skills in managing our

personal budget in our daily life. In fact, I also can know the available services in several

Financial Institutions whether in Conventional or Islamic Financial Institution, especially

in making the personal loan.

Finally, I hope that this assignment will follow the guidelines given. Thank you.

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BOOKS

Jean Luttrell Weirich, 1983, Personal Financial Management, published by

Little Brown and Company

Rosli Mahmood, 1998, Perbankan dan Pemberian Pinjaman, published by

Utusan Publication and Distributors Sdn. Bhd.

INTERNET

http://en.wikipedia.org/wiki/Commercial_bank

http://www.alacrastore.com/storecontent/moodys/PBC_109641

ttp://en.wikipedia.org/wiki/Islamic_bank

http://education.yahoo.com/reference/dictionary/entry/loan

http://en.wikipedia.org/wiki/Loan

http://en.wikipedia.org/wiki/Interest

http://www.answers.com/topic/interest

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personal loan

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