Loan(pinjaman) refers to something that is borrowed especially money. In short, loan simply means debt. After a specific period of time, loan(pinjaman) requires redistribution of financial assets. The process of loaning begins when an individual or more commonly known as the borrower acquires an amount of money from lender/principal. Bear in mind that over time, borrower must repay an equal amount of money or sometimes including interest.
In most situations, borrower will return the money on a regular basis called installments. Each payment made must carries the same amount. As mentioned previously, borrower must repay the loans together with interest which serves as an incentive between both parties.
When a borrower receives an amount of money from a legal firm, he or she must sign a contract that will list down obligations and restrictions called loan covenants. Basically, there are several types of loans available for borrower. Loans are usually categorized under secured or unsecured loan.
The term ‘secured loan’ refers to loan in which borrower pledges some asset in return for the loan. These assets usually come in the form of property to ensure that the borrower has the capability to repay it in a specific time in the form of monthly installments. In addition to that, borrowers will also pledge car as collateral for the loan.
Perhaps, one of the most widely known debt instrument is the mortgage loan. Mortgage loans are frequently used to purchase housing. The specific amount of loan is used to pay off the property. However, in most of these cases, lender or financial firms are given security which is lien on the title to the house. The lien is active right until the mortgage is paid off. Thus, when the borrower lost the ability to pay installments, then financial firms have the rights to reclaim the ownership of the property and sell it to regain the specific sum.
In some situations, borrower may use up the loan(pinjaman) to purchase car. The obligations and restrictions for purchasing a car is similar to mortgage loans. However, duration of loans for car is much shorter compared to mortgage loans. Financial firms such as banks usually offer two types of auto loans namely direct and indirect.
Bank gives loan(pinjaman) directly to borrower for direct auto loans while indirect auto loans is whereby car dealership acts as an intermediary between the customer and financial firm. Among other secured loans available are stock hedge loan, pre-settlement loan and recourse note. Stock hedge loan is a type of security lending in which borrower’s stock is hedged by the lender should the lender suffer loss while pre-settlement loan is a type of non-recourse debt whereby monetary loan is awarded during a lawsuit case. However, pre-settlement loan is only available in several lawsuit cases. Lastly, recourse note is used in most of the limited partnership agreements.
Unsecured loans are totally different from secured loans whereby monetary loans are not secured with borrower’s assets. There are several unsecured loans namely credit card debt, personal loans(pinjaman peribadi), corporate bonds, bank overdrafts and also credit facilities. Usually, rates for these loans vary as it depends solely on the lender.
Maybank offers personal loan
Maybank Personal Loan
RHB Car Loan is the most popular car laon in Malaysia
RHB Car Loan
CIMB Personal Loan offers low interest rate
CIMB Personal Loan
LOAN for government servants
Study Loan by Malaysian Government
Types of Loans(pinjaman) in Malaysia
Types of Loans