For Hire Purchase

PRODUCT DISCLOSURE SHEET

Please read this Product Disclosure Sheet before you
decide to choose Alliance Hire Purchase. Be sure also to
read and understand the Terms and Conditions in the
agreement before signing. Seek clarifications from your
institution if you do not understand any part of this
document or the general Terms and Conditions.

Alliance 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 to
repay the Owner by way of instalment payments based on the agreed tenure. When all instalments are fully paid, ownership
of 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

Interest computation on Variable Rate :

The interest is computed based on scheduled balance and

shall be added to the account on a monthly basis.

Any payment made which is more than the monthly

instalment payable will be treated as an advance payment.
Such payments will not in any way reduce the total interest
payable.

Variable Rate: _________% +/- Base Lending Rate

(BLR)
Current Base Lending Rate (BLR): _________%
Annual Percentage Rate: ___________%
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 can
continue 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?

Stamp Duties

As per Stamping Act 1949 (Revised 1989)

E-Hakmilik Charges

RM3.00 per registration

Charge 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 implementation
of 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 are
available on our website at www.alliancebank.com.my.

5. What if I fail to fulfil my obligations?

Late payment charges/penalty of 8% p.a. will be charged calculated on a daily basis on the overdue monthly instalment
that is not paid.
The Bank reserves the right to set-off any credit balance in your account(s) maintained with us to settle any outstanding
balance 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 in
months (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 payment
due date.
7. Do I need any insurance/takaful coverage?
A comprehensive risk motor insurance/takaful is mandatory for coverage against loss or damage to the vehicle due to
accidental fire, theft or accident and/or third party bodily injury or death, third party property loss or damage.
8. What are the major risk?
For variable rate financing, the interest rate may vary according to the changes in the Banks BLR. An increase of the Banks
BLR 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 defaults
of instalments payment or a default in respect of the last instalment payment by the Hirer.

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 ensure
that 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:
Alliance Bank Malaysia Berhad
Hire Purchase Collection Department
nd
2 floor, 3 Alliance,
3, Jalan SS15/2A
47500 Subang Jaya
Selangor
Contact Centre Tel: 03-5516 9988

Alternatively, you may seek the services of Agensi Kaunseling dan Pengurusan Kredit (AKPK), an agency established by
Bank Negara Malaysia to provide free services on money management, credit counselling, financial education and debt
restructuring for individuals. You can contact AKPK at:
Tingkat 8, Maju Junction Mall
1001, Jalan Sultan Ismail
50250 Kuala Lumpur
Tel: 1-800-88-2575
Email: enquiry@akpk.org.my

If you wish to make a complaint on the products or services provided by us, you may contact us at:
Alliance Bank Malaysia Berhad
Group Complaints Unit
15th Floor, Menara Multi-Purpose, Capital Square
8 Jalan Munshi Abdullah
50100 Kuala Lumpur
Tel: 03- 26043300
Fax: 03-5621 5624
Email: info@alliancefg.com

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 Malaysia
Jalan Dato Onn
50480 Kuala Lumpur
Tel: 1-300-88-5465
Fax: 03-2174 1515
Email: bnmtelelink@bnm.gov.my

11. Where can I get further information?

Should you require additional information on Hire Purchase financing, please refer to the bankinginfo booklet on Hire
Purchase 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 PAY

YOUR MONTHLY PAYMENT IN A TIMELY MANNER.
The information provided in this product disclosure sheet is valid as at _____________<date of issuance of this PDS>
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