Home Loan Types in Malaysia

Home Loan types offered by financial institutions in Malaysia generally divided into to main types.

Term Loan

 • Monthly instalments are fixed for a period of time

 • Payments consists of the loan amount plus the interest

Overdraft Facility

 • A facility with credit line granted based on predetermined limit

 • No fixed monthly instalments as the interest is calculated based on daily outstanding balance

 • Allows flexibility to repay the loan anytime and freedom to re-use the money

 • Interest charged is generally higher than the term loan

Term Loan and Overdraft Combined

 • A facility that combines Term Loan and Overdraft. For example, 70% as term loan and 30% as Overdraft

 • Regular loan instalment on the term loan portion is required

 • Flexibility on the repayment of overdraft portion

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