HP_PDS_CON_ENG

8/20/2019 HP_PDS_CON_ENG

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For Hire Purchase

PRODUCT DISCLOSURE SHEET

Please read this Product Disclosure Sheet before youdecide to choose Alliance Hire Purchase. Be sure also toread and understand the Terms and Conditions in theagreement before signing. Seek clarifications from yourinstitution if you do not understand any part of thisdocument or the general Terms and Conditions.

All iance Bank Malaysia Berhad

Product Name: Alliance Hire Purchase

Date: _____________(Indicate the date of issuance of this PDS e.g. 28 August 2013)

1. What is this product about?

Hire Purchase financing is a common commercial practice used for financing the purchase of a vehicle governed under the

Hire Purchase (HP) Act 1967.

In Hire Purchase financing, you are the Hirer and the Bank as financier is the Owner of the Vehicle. As the Hirer, you have torepay the Owner by way of instalment payments based on the agreed tenure. When all instalments are fully paid, ownershipof the vehicle is then transferred to you.

2. What do I get from this product?

Total Amount of Financing: RM__________

Margin of Financing: _______% of vehicle price

Tenure: ______ years

Interest Rate:

Fixed Rate: _________% p.a. flat

Variable Rate: _________% +/- Base Lending Rate

(BLR)

Current Base Lending Rate (BLR): _________%

Annual Percentage Rate: ___________%

Interest computation on Variable Rate :

The interest is computed based on scheduled balance andshall be added to the account on a monthly basis.

Any payment made which is more than the monthlyinstalment payable will be treated as an advance payment.Such payments will not in any way reduce the total interestpayable.

3. What are my obligations?

Your Monthly Payment RM

Your Final Payment RM

Total Payment Amount including the Amount Financed RM

If the financing tenure extends into your retirement age, you must make necessary arrangements to ensure that you cancontinue to repay the financing either through a saving plan or endowment policy to be arranged by yourself.

4. What other charges do I have to pay?


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Stamp Duties As per Stamping Act 1949 (Revised 1989)

E-Hakmilik Charges RM3.00 per registrationCharge Fee for Registration RM100.00

Transport Charges RM10.00

Charge Fee by RTD for Ownership Claim RM50.00

RTD Fitter Charges RM80.00-RM180.00

Vehicles Inspection Charges RM30.00

Note:

Unless otherwise specified herein, our charges exclude any current taxes and future taxes that may be imposed(including the Goods and Services Tax (“GST”)), under the relevant legislation. Upon the effective date of implementationof any such taxes in the future and wherever applicable, we will be entitled to recover such taxes from you.

21 days notice is given to you for any changes of the Hire Purchase fees and charges. The latest fees and charges areavailable on our website at www.alliancebank.com.my.

5. What if I fail to ful fil my obligations?

Late payment charges/penalty of 8% p.a. will be charged calculated on a daily basis on the overdue monthly instalmentthat is not paid.

The Bank reserves the right to set-off any credit balance in your account(s) maintained with us to settle any outstandingbalance in this financing account.

Legal action will be taken if you fail to respond to reminder notices. Your vehicle may be repossessed and any cost will

be borne by you. You are responsible to settle any shortfall after the vehicle is sold. Legal action taken against you may affect your credit rating leading to credit being more difficult or expensive to you.

6. What if I settle in full the Hire Purchase financing before its maturity?

For Fixed Rate:

You will be given a statutory rebate on the unearned interest of your Hire Purchase financing as stated in the Hire Purchase Act 1967. The statutory rebate computation is:

Statutory Rebate = Term Charges x n (n+1)

N(N+1)

Where n represents the remaining financing tenure in months (e.g. 12 months) and N represents the original loan tenure inmonths (e.g. 60 months)

For Variable Rate:

The settlement amount will be the outstanding amount plus Term Charges accrued and calculated up to the next paymentdue date.

7. Do I need any insurance/takaful co verage?

A comprehensive risk motor insurance/takaful is mandatory for coverage against loss or damage to the vehicle due toaccidental fire, theft or accident and/or third party bodily injury or death, third party property loss or damage.

8. What are the major ri sk?

For variable rate financing, the interest rate may vary according to the changes in the Bank’s BLR. An increase of the Bank’sBLR may result in higher monthly instalments and total repayment amount.

Under a HP agreement, the Bank has the right to repossess a motor vehicle after there has been two (2) successive defaultsof instalments payment or a default in respect of the last instalment payment by the Hirer.


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9. What do I need to do if there are changes to my contact details?

It is important that you inform us in writing of any change of your contact details (i.e. address and phone number) to ensurethat all correspondences reach you in a timely manner.

10. Where can I get assistance and redress?

If you have any difficulty in making payments, you should contact us earliest possible to discuss payment alternatives.You may contact us at:

Al liance Bank Malaysia BerhadHire Purchase Collection Department2

nd floor , 3 Alliance,

3, Jalan SS15/2A47500 Subang JayaSelangorContact Centre Tel: 03-5516 9988

Alternatively, you may seek the services of Agensi Kaunseling dan Pengurusan Kredit (AKPK), an agency established byBank Negara Malaysia to provide free services on money management, credit counselling, financial education and debtrestructuring for individuals. You can contact AKPK at:

Tingkat 8, Maju Junction Mall1001, Jalan Sultan Ismail50250 Kuala LumpurTel: 1-800-88-2575Email: [email protected]

If you wish to make a complaint on the products or services provided by us, you may contact us at:

Al liance Bank Malaysia Berhad

Group Complaints Unit15th Floor, Menara Multi-Purpose, Capital Square8 Jalan Munshi Abdullah50100 Kuala LumpurTel: 03- 26043300Fax: 03-5621 5624Email: [email protected]

If your query or complaint is not satisfactorily resolved by us, you can call Bank Negara Malaysia LINK or TELELINK at:

Block D, Bank Negara MalaysiaJalan Dato’ Onn50480 Kuala LumpurTel: 1-300-88-5465Fax: 03-2174 1515Email: [email protected]

11. Where can I get further info rmation?

Should you require additional information on Hire Purchase financing, please refer to the bankinginfo booklet on HirePurchase financing available at our branches and the www.bankinginfo.com.my website.

13. Other Hire Purchase-i financing packages available:

Nil

IMPORTANT NOTE: YOUR VEHICLE MAY BE REPOSSESSED IF YOU DO NOT PAYYOUR MONTHLY PAYMENT IN A TIMELY MANNER.

The information provided in this product disclosure sheet is valid as at _____________

HP_PDS_CON_ENG

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