Asia Success Award - BLR Managment
AceScube Profile - Financial Freedom Contribute to Worry Free Lifestyle
AceScube Profile - BLR (Basic Lending Rate Management)
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.
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
professionals. 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
impose 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.
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
years 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
up!
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
happen.
10. Strategic
Planning and Reasonable Loan
Payment: A Wise Solution
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
an 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
below):
12. 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 with the country’s basic laws. It
allows a win-win situation where both
the banks and the borrowees truly
benefit.
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.
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,
Service,
Support, a synergized 3-in-1 combating in the forefront the client's debt
problems.
NEWS ARTICLES SECTION
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.
Review
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
Facility;
(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
Conclusion
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.
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.