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Asia Success Award - BLR Managment
Asia Success Award

AceScube Profile - Financial Freedom Contribute to  Worry Free Lifestyle
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AceScube Profile - BLR (Basic Lending Rate Management)
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1. Professional Skill Solves Client's Future Problem
      What is SIM 50 and its function? 
      Answer: No matter how long your property mortgage loans term are, SIM50 provides a 99% accurate C I S S (Customized 
      Interest Saving Scheme)  monthly installment payment account ledger in
 slashing off 50% of the mortgage interest amount
      and at the same time 
reduces the tenure (payment term) by 50%.
Ultimately SIM50 is able to protect the client from the risk
      of BLR fluctuation
and thereby allows client to make monthly repayment without hassle. SIM50 is not a Refinance scheme,
      restructuring of housing (property) loan or similar services but is a relatively new financial service to allow client legally  
      repay property loan in a manner that optimizes client's financial advantage .

      AceScube provides a 99% accurate C I S S monthly  installment payment account ledger basing on the BLR Management
      to assist the client to manage their payment term, repayment amount and loan payment planning. Because of BLR
      fluctuation, prevailing bad payment record rate, late payments or underpayment (one off payment, extra payment or monthly
      payment), if in the absence of BLR Management, whatever earlier over-payments or future payments will complicate the
      loan agreement or package. Therefore, managing unfavorable BLR will cause payment term to be extended and
      correspondingly interest rate to be increased

   C I S S

      Customised Interest Saving Scheme (C.I. S.S.) is a financial mathematical of formula based on    
      cutting-edge expertise and hands-on experiences formulated by a team of highly qualified financial
It optimises maximum savings which translates to reduced total loan  repayment
      and shorten loan period!

      The formula has been tested and proven and the result of the saving is affirmed with legal assurance.        

       Through reviewing the client's current outstanding loan amount, AceScube is able to understand the client's loan status.
        By the accuracy of our service, we can help reduce the client's loan repayment burden thus avoiding paying unnecessary 
        interest amount or having the payment term extended. First we have to diagnose the sickness and then prescribe the right
        medicine, only then the disease will be cured.

2. Guaranteed Accuracy and Legal Guarantee
The difference between 
BLR Management and Mortgage Reducing service provided by other companies is that
       Mortgage Reducing service  may  not be able guarantee this accuracy because the BLR fluctuation will cause payment
       term extended and interest rate increase if BLR rises. BLR Management will guarantee no matter how the BLR fluctuates,
       the reduction of payment term and interest saving that the client is paying.

3. 99% Accuracy
What is the basis of 99% Accuracy? Even when BLR fluctuates, it is still able to maintain the saving in the loan amount as
       well the interest amount. SIM50 assures an affordable  prepayment amount and reasonable repayment amount. Without
       SIM50 and
BLR Management it may bring about endless loan repayment, probable extension of  the payment term,   
       paying more interest amount and may incur depleting the client's savings.

4. Legal Guarantee
       AceScube has a good working relationship with lawyers in offering a complete trust in servicing the client. Client will be
       rest assured the service provided is under legal protection.

5. Trustworthiness
       What is borrowed must be repaid and this responsibility is highly practiced by banks. Breaking this principle like delaying    
       payments, banks will not give a helping hand to offenders. As for the banks, they will apply the banking rules  to
a strict slapping of extra late payment interest on top of the contracted or original interest and compounded on a
       daily basis 
which means increase in interest payment. (See News Articles below: Banks or Licensed Ah Long? and
       Borrowers Ripped-
Off by Housing Loan Contracts).

6. Maintaining Good Record
Therefore it is of paramount importance for fund conscious client seeking to reduce interest payment to adhere strictly to
       loan agreement in paying monthly repayment. Try to avoid breaking the loan agreement to prevent losing credit worthiness  
       and dire consequence of banks collecting more penalty interest amount thus saving your good name and your loss in  
       paying increased interest amount.       

Asia Success Pg 3

7. Small Saw to Cut Big Tree
     Mr. Lim (housing loan applicant) signed a loan agreement with a bank of 20-year term for a amount of RM40,500.00. On    
        31 December 2007, he found out he still owed the bank RM36,576.00. He was angry and shocked. He had paid for 16  
yet the loan amount had only reduced by RM3,400.00. The bank replied that since 1990, the interest rates had
        increased but the monthly repayment amount had not changed.

       All the while, Mr. Lim had been paying the interest amount and was not aware of the total loan amount outstanding. Now he
       wishes to finish his loan payment but it
needs another 6 more years, that is to say it takes altogether 26 years to fully settle
       his home loan what he had originally plan to do it in 20 years
. This situation is impossible to happen but it was so because
       Mr. Lim was not aware of the changes in interest rate and did not have a loan payment calculation plan. The onus is on the
       loan applicant (responsibility for the correct loan repayment) and not on the bank because the loan applicant was not
       aware of the details of the mortgage interest of the loan package. And the bad news is,
BLR has a strong tendency to go

Historical BLR

Rising BLR

Asia Success Pg 4

8. Prepayments
   Different financial institutions, offer different terms and conditions for the prepayment of housing loans. AceScube first
       and foremost assists the loan applicants by studying the loan agreement whether there is any repayment condition or any
       extra payment flexibility
. If there is flexibility clause for prepayment and payment base on daily interest, it is possible to
       save substantial savings in interest payment. Most importantly, monthly repayment must be made in time or promptly.

9. Pay Special Attention To Loan Package, Emphasize on Studying Details
Loan applicants always look for the lowest interest rate but this search for the golden opportunity is not advisable.
       Applicants must not only look upon the lowest interest to pick up a loan package, the accompanying terms and conditions  
       must be highly taken into serious consideration above all else

      The applicants must look for more banks for comparison during loan application. At present, there is a strong competition    
       among the banks and to fight for market share, they will adjust the Bank Negara’s approved BLR to achieve their targets.
       As such, those seeking for financing for housing loan will ‘shop’ around looking for the cheapest rate.

      During loan application, the candidate must consider his repayment capability. Monthly repayment amount preferably must    
      not exceed 1/3 of monthly family income. If the applicant has savings or fixed deposits scheme, this will help in qualifying
      for the loan application.
The applicant must take note that as BLR increases, the mortgage interest will go up accordingly.
      Likewise, the monthly repayment amount will also increase. Or else, problem like what Mr, Lim had encountered will

 10. Strategic Planning and  Reasonable Loan Payment:  A Wise Solution
Firstly AceScube implements a Customised Interest Saving Scheme (C I S S ) for the applicant which can help
            them achieve saving of interest from 50% - 75% and correspondingly the same reduction in the payment term. It also  
            helps applicant to avoid problems in the midst of repaying the loan during the paying period. The result of the CISS will
            be ready in 3 working weeks and within 3 days applicant will able to know the result of the CISS workout
. There is no
            need of Refinancing and AceScube estimates that the adjusted repayment base on prevailing mortgage interest is
            customized within the capability of the applicant.

           Moreover, AceScube launched the BLR Management service to help client to avoid the risk brought about by the
           fluctuation of the BLR
and burden that may arise from it. As the same time when BLR goes down, the client will not
           be deprived of the benefits that results from such fluctuation
. In the forefront of managing the complex BLR fluctuation
           which may 
result in financial and loan risk, this service will remove such heavy burden from the client.

11. Debt Free Zone
While promoting the BLR Management service and on implementing the CISS and , AceScube all the more introduces
exciting service called – DEBT FREE ZONE (DEBT). Not only does it allow client to calculate their own loan payment,     
          understand their BLR loan structure, it also allows the client to obtain a solution to their loan comprising of: current    
          monthly loan structure, calculating the impact of BLR fluctuation on their loan, the result of SIM50 application (CISS) on          
          their loan
; solves the debtors’ loan repayment problems at the forefront; helps realize the goal of financial freedom
          allows client within the planned time to be free from debt and at the same time able to own more properties.

          We adopt a way of applying a small saw to cut down a big tree, bit by bit assisting the client to reveal the repayment    
          problems thus allowing them to saw off the huge debt, which the big tree represents. (See the Debt Free Zone Catalog  

Debt Free Zone

Excellent Service, Client in Mind: 99% Accurate - Money Back Guarantee  

AceScube’s launching of the 3 core services, i.e., C I S S, BLR Management and Debt Free Zone are fully in
          compliant  w
ith  the country’s basic laws. It allows a win-win situation where  both the banks and the borrowees truly

          AceScube provides a 99% accurate scheduled monthly loan repayment account ledger which easily analyzes the client's 
          repayment problem.  Once the problem (s) is isolated and free from any encumbrances after analyzing the Letter of
          Offer, AceScube will implement a suitable SIM repayment plan.

         After subscribing to the plans if the client  do not enjoy any saving in interest or shortening of the payment term or there is
         a 1 % difference between the C I S S payment schedule
 amount and the bank's statement figure , it is AceScube’s policy  
         to refund in full amount the management fee to the client 
concerned. This will in a big part gain the confidence of the client
         and also their support.

 Asia Success Pg 5

Asia Success Pg 6

13. Blue Ocean Strategy, United in Strength Building the Future
AceScube (M) Sdn Bhd since its planning stage, establishment and development till date had been in business for 5
          years. During this 5 years our team has grow bigger and stronger and client has also increased likewise. With a
          thank giving heart we look forward to cooperate with all of you.

14. Blue Ocean Marketing, Good Strategy will Dominate Opportunities
Assisting client to save on housing loan, shortening the repayment term, implementing the CISS, providing the Debt Free
         Zone service constitute a level playing field whereby dawning a rising sun business with full vigour, attracting the attention
         of multitudes and at the same time solves many people’s financial problem: life now is different from the crowd.

15. Symbol of AceScube
The symbol of AceScube resembles the crown signifying a unique goal and team, achieving financial
       freedom at an earlier age
. The red color signifies a burning desire to and passionate at servicing
       the client
. The word “AceScube” is a combined words of ‘Ace’ and ‘Scube’. The name AceScube
       represents ‘Ace’ (playing card ace) and ‘Scube’ represents a 3-S Cube, i.e. signifying Solution,
       Support, a synergized  3-in-1 combating in the forefront the client's debt problems.


Info Circle Borrowers ripped-off by housing loan contracts  (Reference: CAP - Consumer Association of Penang) 

The only way to protect Malaysian consumers is to have an Unfair Contract Terms Act similarly to that in the United Kingdom (UK). With such an Act, once the term or clause is deemed unfair, it becomes unenforceable. It then becomes irrelevant to the borrower how many of such unfair terms are in the contract as they are considered null and void.

Furthermore, even if the levying of certain costs is considered valid, if the charges are excessive, they will not be allowed. Such an Act to protect Malaysian consumers is long overdue.

Agreements are so lopsided and unfair? Answer: It must be contracts signed between a consumer and the bank.

Banking contracts, be it a housing loan or a credit card agreement are basically designed with the sole aim of ensuring that as much of the risks and costs are borne by the borrower. (For hire-purchase, the contracts are guided by the Hire-Purchase Act.)

Variation of Loan Interest
It is most unfair to expect the consumer to sign a contract which gives the other party the absolute discretion to vary any of the terms already agreed upon. Yet this is what consumers are subject to when they sign their housing loan agreements with the banks. The bank’s loan documentation always provides for the bank the freedom to vary their interest rate at any time. The borrower has no say to this change in the interest rate which could be at a higher rate than which he had committed to.

Some of the current terms pertaining to interest rates which can be found in loan documentation are:

As specified in item 3 of this Letter of Offer "subject always to the absolute discretion of the Bank to carry the rate from time to time whether by varying the Bank’s Base Lending Rate (BLR) and/or the margin or spread above the BLR or otherwise or pursuant to item 14(d) of the Letter of Offer” — Citibank Bhd

“….impose additional conditions, amend any terms and conditions governing the bills facilities and revise/vary the in interest rates and other charges from time to time at the Banks’ absolute discretion”. — Public Bank Bhd

Usually such terms are not highlighted to borrowers who are under the impression that the only way that interest rates could vary is if the BLR is changed and not by any other means.

For the majority of borrowers, the main deciding factor on whether to take up a particular bank’s housing loan is the rate of interest charged.

Since the interest rate is the very core of the agreement, the bank should not be allowed to change it at its own discretion.

Besides giving one party the right to unilaterally change the terms of the agreement is generally not tolerated in any contracts.

Borrower Pays Costs
The housing loan contract makes it very clear that the borrower has to pay the bank’s legal fee and the processing fee and any other fees associated with the loan.

All costs, charges and expenses including the stamp duties, penalty fees, legal fees, etc, relating to the facility (ies) shall be borne by you” — CIMB Bank Bhd (formerly Southern Bank Bhd)

The Borrower shall be liable to pay all fees and expenses in connection with to incidental to this Agreement including the Bank’s solicitors’ fee (on a solicitor and client basis) in connection with the preparation and execution of this Agreement and such other documents related thereto….” — EON Bank Bhd

A processing fee of RM100-00 is to be paid upon acceptance of this offer.” Malayan Banking Bhd (formerly Mayban Finance)

The above are costs that, are part and parcel of the banks costs of doing business and should rightly be paid for by the banks.

Concurrent Actions to Recover Loans
Such a clause gives the banks the right to recover the debt by filing foreclosure proceedings to auction the property and also a civil suit all at the same time.

The clause goes something like this: “…the Bank shall thereafter have the right to exercise all or any of the remedies available whether by this Agreement or by statute or otherwise and shall be entitled to exercise such remedies concurrently, including pursuing all remedies of sale or possession pursuant to the Agreement and civil suit to recover all monies due and owing to the Bank.”

In both exercises of foreclosing the property and the civil suit, all the expenses incurred will have to be borne by the unfortunate borrower.

The practice of using concurrent actions to recover loans by banks unnecessarily increases the debt of the borrower.

Since the borrower’s property is charged to the bank, the bank should first attempt to recover the debt from the sale of the property before filing a civil suit against the borrower.

The bank has the freedom to review and change the terms and conditions of the agreement at any time even when the borrower has been faithfully paying his instalments.

The Facility and the terms and conditions thereof are subject to review at any time and from time to time as the Bank deems fit irrespective of whether or not an event of default has occurred or is continuing. Upon such review, the Bank may unilaterally:

(a) suspend or cancel the whole or any part of the Facility

(b) declare the Facility to be forthwith due and payable and /or require procuring the release and discharge of the
      Bank from all or any liability or obligation to make any payment from the Facility to any person;

(c) vary the form, nature, manner, limit, terms and/or conditions of the Facility and /or conditions in respect of the

(d) without prejudice to the generality of ( c) above, impose additional terms and/or conditions in respect of the
      Facility; by mere notice in writing to you and the security constituted by the Security Documents and the
      Bank’s rights under the Security Documents shall not be prejudiced thereby.”— Citibank Bhd

Like the clause that allows variation in interest, it makes the position of the borrower most insecure.

Miscellaneous Unfair Terms
Sometimes processing of the loan is held up and the progress payments are not made by the bank to the developer in time. When that happens, the developer charges the borrower interest for late payment.

When the angry borrower finds out that delay is due to the bank’s side, he will then want the bank to recover the late payment charges from the bank.

However, the bank may have a clause in its agreement which says that the bank or the bank’s solicitor cannot be held responsible even if the bank or its solicitor are the ones which have caused the delay in disbursement or documentation of the loan.

At anytime, we reserve the absolute discretion to disburse the aforesaid loan or such part thereof in such manner by such time and upon such terms and conditions stipulated by or comfortable to us and our solicitors and although we may have notice of the terms and conditions of the Sale & Purchase Agreement you have entered with the Developer/Vendor in respect to which we will try to assist your compliance, we are however not obligated or legally bound to do so and by virtue thereof you expressly agree not to hold us responsibly liable or accountable for any loss damage expense or cost incurred by you as a result of any delay in disbursement or documentation of the aforesaid loan by either our company or our solicitors in relation to any Sale & Purchase Agreement or transaction you have entered with such Developer/Vendor.”Malayan Banking

Miscellaneous Unfair Costs
These are lower costs which banks should not even been charging borrowers. For example a few years ago, charging the borrower a fee for the “maintenance” of a loan was unheard of. Banks are definitely innovative in finding new ways to get more money from the borrower.

 levy a handling charge of RM12 or such other amount on each reminder sent for any amount in excess or in arrears.”

 A reimbursement expense of RM10 or other amount determined by the Bank shall be levied for the maintenance of the loan amount every half yearly. (excluding low cost houses)  Public Bank’s Home Plan 1

The only way to protect Malaysian consumers is to have an Unfair Contract Terms Act similarly to that in the United Kingdom (UK). With such an Act, once the term or clause is deemed unfair, it becomes unenforceable. It then becomes irrelevant to the borrower how many of such unfair terms are in the contract as they are considered null and void. Furthermore, even if the levying of certain costs is considered valid, if the charges are excessive, they will not be allowed. For example, in the UK, bank charges of above RM12 are considered unfair and bank customers can ask for refund for the excessive fees the banks collected in the last 6 years.

Such an Act to protect Malaysian consumers is long overdue.

Read Islamic Housing Loan Rip-Off in Utusan Konsumer January-February 2008.

Info Circle Bank or licensed Ah Long?  (Reference: CAP - Consumer Association of Penang) 
Some banks charge higher interest than moneylenders. When a bank charges interest on a loan at a rate that is higher than that of a moneylender, does it not make the bank a licensed Ah Long?

When banks charge a compound interest on loans, when licensed moneylenders do not, does it not make them licensed Ah Longs? Banks and Ah Longs, what is the difference? The truth is that often consumers find it hard to tell whether they are dealing with banks or Ah Longs.  Both are in the business of making profits by lending out money and both can be ruthless in their own ways.

Bank Loan More Expensive than Moneylender’s

Consumers cannot take for granted that the loan from the bank will always be cheaper than that of moneylenders.

Under Section 17A of the Moneylenders Act 1951,   moneylenders can charge interest of up to 12% per annum for secured loans and up to 18% per annum for unsecured loans. To charge anything higher would be breaking the law.

For banks, it is a different story. There is no limit on the interest that they can charge on loans. Most of the time their interest is lower than that of moneylenders.

We have come across a case where the interest charged for a personal loan taken from a bank is very much higher than that can be legally charged by a licensed moneylender.   Yet, unlike moneylenders, the bank is not breaking any law.

CIMB Xpress
The CIMB Xpress is an Islamic personal loan which many may find appealing. (Islamic loans  are open to non-Muslims as well). According to its brochure, the requirements for the loan are minimum and the rates are affordable. No guarantor is required for a loan that is less than RM5,000 and  the applicant only needs to have a monthly salary of RM800 to apply.  The applicant can apply for a loan that is 5 times his salary and the loan can be approved within 24 hours.

For a loan of RM3,000 for 5 years, the repayment works out to be RM3.62 per day. This does not seem much but the rate of profit (equivalent to the interest charged on a conventional loan) on the loan is high, at 2% per month or 24% per annum.

In a year, the borrower would have paid RM1,320 and at the end of 5 years he would have paid RM6,600.

ABC Moneylender
If the RM3,000 loan were to be taken from a moneylender, the interest charged is 18% as it is an unsecured loan. 

This is cheaper than CIMB  Xpress’ 24% rate of  profit.

For a loan taken from ABC moneylender, the total interest charged on a loan of RM3, 000 for 60 months is RM2, 700.  The monthly instalment works out to be RM95 per month or RM3.12 per day. 

At the end of the 5 years the borrower with the loan from ABC Moneylender saves RM900.

Now who says it is always cheaper to take a loan from a bank than a moneylender?

Is it ethical for banks to charge interest that is higher than that of  moneylenders?

Double Standards on Compound Interest?

There are 2 ways to calculate interest for loans — simple interest or compound interest.

Simple interest is interest which is calculated only on the principal amount. Compound interest is where interest is calculated on the principal plus interest incurred in the previous periods. 

When compound interest is applied, the debt will grow faster than under simple interest.

For example, if the penalty interest on late payment is RM100 and the balance outstanding is RM10,000, compounding allows the bank to charge interest on the total of RM10,100.  If simple interest is being used, the bank will only be allowed to calculate interest on the outstanding balance of RM10,000. 

Section 17 of the Moneylenders Act 1951 prohibits directly or indirectly, the use of compound interest by moneylenders.

However, banks do not face such restrictions on compound interest. By charging compound interest they are effectively charging  interest upon  interest and that is why the debt increases tremendously.

Anyone who has defaulted on his housing loan or credit card payment will  understand how fast debt accumulates because interest is being compounded.

Compounding interest increases the debt much faster and thus allows the banks to make even more money.

Why should the banks be allowed to compound interest when moneylenders are not allowed to do so?

What does Bank Negara have to say?

Read the Moneylenders Act in Utusan Konsumer July-August 2008.

Never Ending Payment Eng

Islamic Loan Eng

The Sun
Never Ending Payment Chin
Never Ending Payment Chin
Islamic Banking Chin
Sin Chew News

Solution - 方案
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SIM75 Eng
SIM75 Chin

Thank you for your time viewing the  BLR Management articles on housing loan. If you need to have your loan reviewed and adjusted for the SIM50 or SIM75 (SIM - Slashing Interest Methodology), contact Charles Lim at 016-7376830. 

Prepare the necessary photocopy of documents as listed above AceScube application checklist.  

Thank you and have a great day.

谢谢播出时间观赏BLR管理房屋贷款的文章。有需要把您的贷款审查及以 SIM50 或 SIM75调整 (SIM 利息削减管理), 请联络  Charles Lim 于 016-7376830.