INTRODUCTION

It is so easy to get cash money now a day. We can get it in our mail box, sms,
phone call, newspaper, radio, and outdoor billboard.

Spread like a wild fire, personal loans are now fast becoming a main stream
offer by banks, a far cry from as recent as 3 years ago. And, the competition is just
getting hotter and more aggresive; Hong Leong Bank 48 hours fast approval has
been toppled by Standard Chartered’s 24 hours approval, RHB offers the longest
repayment period up to 7 years with a loan amount up to RM150,000. Other than
that, there are many of banks now are offering us personal loan such as CIMB
Express, Islamic Bank, BSN Bank, Agro Bank and Bank Rakyat and so on.

A personal loan is a loan from a lender that is not secured by any collateral such as
property. The relaxation on BNM interest rate rulling, personal loan is now flourishing
where alomost every single commercial banks have one. In its simpler form, these
personal loans are like a second credit card but the difference is only swipe once
and by that one swipe, it will max out our credit limit.

The minimum required annual income is between RM18,000 to RM24,000. With

such low income requirement, it is likely that such loan will attract younger working
population who may have many materials wants but less financial means. The
promotion message suggests the loan can be used to buy the dream holiday
package, to renovate the house or for a more noble course or to further education.

The total loan amount will be given out in one lump sum and the borrower repays the
loan in a fixed amount on a monthly basis. The loan repayment period starts from a
minimum 24 months to a maximum 60 months. The borrower is required to make the
repayments in a series of fixed installment throughout the loan period. No guarantor
or collateral needed. The application process is exactly like applying for a credit card.
The loan amount usually capped at RM150,000 or 5 times of the applicant’s monthly
income.

PROBLEM STATEMENT

I am a teacher who is teaching about 11years starting from 1998 until now.
My problem now, my old car, Nissan Sani always break down so I decided to buy
another good car, Perodua Viva.

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 My salary at now is RM3250.35 which is the gross salary is RM 2600.35 and
my allowance is RM650. Based on my salary, I want to make a personal loan from
the cheapest bank that is offering me the lowest rates that are suitable with my
salary. So I want to make a loan RM 25 000 for 10 years monthly payment.

Based on the my observation, there are 5 banks offered the cheap payment
for monthly but I need to make the cheapest loan among these banks :

• BSN
• AGRO BANK
• BANK RAKYAT
• ISLAMIC BANK

BANK PAYMENT FOR MONTHLY (10 TOTAL PAYMENT FOR 10

YEARS) YEARS

AGRO BANK RM 313 RM 37560

CIMB EXPRESS RM 325 RM 39000

BANK
BSN RM 315 RM 37800

BANK RAKYAT RM 328 RM 39360

ISLAMIC BANK RM 325 RM 39000

• CIMB EXPRESS

According to my pay slip

• Total salary : RM 3250.35

• Gross salary : RM 2600.35
• Allowence : RM 650.00

• Deduction

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 Zakat : RM 10.00

Angkasa : RM 1505.01

Lembaga Tabung Haji : RM 100.00

Total of deduction : RM 1615.01

• Net pay : RM 1635.34

Monthly expenditure

Types of expenditure Amount

Food RM 300.00
Rental house RM 350.00
Bils RM 100.00
Total amount : RM 750.00

Net pay – total amount of expenditure

RM 1635.34 – RM 750.00 = RM 885.34

LOAN FOR BUY PERODUA VIVA: RM 25 000 for 10 years monthly payment

Agro Bank

Monthly payment : RM 313.00 × 10 × 12 =RM 37 560

Profit : RM 37 560 – RM 25 000 = RM 12 560

(%) for 10 years : RM 12560RM 25000 × 100 = 50.24 %

(%) for a year : 50.2410 = 5.024%

CIMB Express Bank

Monthly payment : RM 325 × 10 × 12 = RM 39 000

Profit : RM 39 000 – RM 25 000 = RM 14 000

(%) for 10 years : RM 14 000RM 25 000 × 100 = 56 %

(%) for a year : 5610 = 5.6%

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BSN

Monthly payment : RM 315 × 10 × 12 = RM 37 800

Profit : RM 37 800 – RM 25 000 = RM 12 800

(%) for 10 years : RM 12 800RM 25 000 × 100 = 51.2 %

(%) for a year : 51.210 = 5.12 %

Bank Rakyat

Monthly payment : RM 328 × 10 × 12 = RM 39 360

Profit : RM 39 360 – RM 25 000 = RM 14 360

(%) for 10 years : RM 14 360RM 25 000 × 100 = 57.44 %

(%) for a year : 57.4410 = 5.744 %

Islamic Bank

Monthly payment : RM 325 × 10 × 12 = RM 39 000

Profit : RM 39 000 – RM 25 000 = RM 14 000

(%) for 10 years : RM 14 000RM 25 000 × 100 = 56 %

(%) for a year : 5610 = 5.6%

• GRAPH

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CLOSURE

According to the five banks that I had research which are Agro Bank, Islamic Bank,
CIMB Express Bank, Bank Rakyat and BSN, I already decided to choose Agro Bank.
The reason why we chose the bank because of it offering me the lowest rates which
is 5.024% a year and for ten years it is only 50.24% compared to the four banks. It is
also provides the cheapest personal loan payment that is only RM 313.00 a year and
RM 37 560 for ten years.

When I chose Agro Bank to make a personal loan, I found that the cheapest
payment is benefit to me because the amount of balance after the deduction from
the net salary minus total expenditure is greater among the four banks. So the
greater balance could be expenses to the other necessary. I am sure that my
decision is absolutely correct to choose Agro Bank as making my personal loan.

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 Name : Nur Diyana binti Shaiful Bahri

Alhamdulillah, thanks to Allah because finally my friends and I had completed

this KKP Mathemathics, the task of Numerical Literacy very well. This assignment
was given to all the PPISMP Semester One students at the Al-Farabi Hall with a
concise and compendious briefing by Mr. Mohd Yusof bin Mohd from Mathematics
Department. This assignment required us to work in a group of 3. Therefore, my
friends and I who are Wan Nur Ashikin and Nur Syafiqah decided to form one team.
From 13th September to the submission date on 1st October we have only 19 days to
complete this task.

On top of that, I need to take some brochures from several banks to make a
comparison of the personal loan’s rates. I need to choose the cheapest personal
loan that is corresponding with my monthly income so that I can repay the loan that I
made. Besides that, I need to plan my annual expenditures to avoid the over
budgets.

I found this project has its own strength and its weakness too. The strength
are this project actually exposes me to know more about the personal loan that I
might use it in the future, so from this project I learn much about how to calculate the
rates and its payment too. Other than that, this task also teaches me how to plan my
expenditures monthly and annually so that I manage my money economically. The
good thing is it also provides me more information about the deduction of the
monthly pay and how to keep the balance of the salary for any necessary and
emergency.

Unsparing, this task is very beneficially because it has its own values which
provide us to cooperate and assist each other, share the information and opinions
that we got to complete this task very excellently. The personal loan that the selected
banks in this task which are Agro Bank, CIMB Express Bank, Islamic Bank, Bank

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Rakyat and BSN have their own rates to offer me to make a loan to the their bank.
Actually, I need to think the cheapest and reasonable rates and the payment that is
corresponding to my salary. It teaches me to determine the right bank for me to
make a loan.

The weakness of this task is the time is running out obliviously because do
not have much time to research for many banks that are offer maybe the lowest
rates besides the banks that I found. In addition, I can’t find any reference from the
books because of the limited resources from the library. The third weakness is the
services from the certain banks was unsatisfied because of the bank officer was too
busy to give me the information about how to make a loan. The most weakness that I
found was I should meet my lecturer to ask about this task early and not meet my
lecturer last minute to complete this task.

To overcome this weakness I should not postpone this task until last minute
and go to many banks to ask by myself about how to make a loan and learn more
about the rates which other banks offer besides the banks that I found. Besides that,
I should do more research in the internet to find the suitable book for the personal
loan or go to the library or bookshop to find more knowledge about the personal
loan. Not for this task but also my knowledge and preparation in the future. To avoid
this weakness happen next time, I need to make appointment to meet the bank
officer to get more information relates to the assignment. The most important to
prevent this weakness I should meet my lecturer to ask how to calculate the rates
and payment more often so I can avoid less mistakes.

Entirely, this task has its own advantages and strength that are useful for me
although in the beginning I thought it was very difficult to complete it but lastly I found
this task is very interesting to learn. The weakness should not be neglect at all
because I have to against the problem that I found and I hope this weakness could
be overcome next time.

NAME : NUR SYAFIQAH BINTI JASNI

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 Alhamdulillah, thanks to ALLAH for giving me a good health so that I can do
my assignment in well. Lastly, I managed to complete my assignment and I hope my
lecturer will be satisfied with my task. This task must do in grouping so I had chosen
2 persons from my classmates that I looked can give a good cooperation to me.
They are Wan Nurashikin Wan Roslan, Nur Diyana Shaiful Bahri and me,
Nursyafiqah Jasni. This task we got on 13 September 2009 and will be submit on 1
October 2009. At first, when I got a task for this subject, I feel very worried because
for me it has some difficulties which it is related with a bank. Although I got this task
2 days before my ‘ Hari Raya’ holiday and that time I had a lot of another
assignments, my friends and I still did this project very hardworking. From my
observations, I think the advantages that I got from this project are I knew how to
make a personal loan from the banks. The experience through this project is it very
useful to me for my future especially when I want to make a loan by using my salary.
From this project also, I had gain my knowledge about the banks such as the rates of
monthly payment, the bank which offered the cheapest rates and payments, how
many years I must take if I make a loan for any amount. Besides that, I can make a
comparison of the rates that offered by the bank. This project also made me know
many rates of payment in different banks. Furthermore, I knew how much profits or
interests that the banks got from this personal loan. From the comparison that I had
made, I was identified which the bank give the most cheapest, so when I want to
make a loan for one day, I can do a budget in a month. For disadvantages, my
friends and I did this task in rushly condition because it was holiday so, we cannot
discuss together. We can just take the brochure from the banks and discussed when
we came back here, to this institute.In addition, I started my task late. I did not have
a pay slip at that time yet. I got the pay slip 3 days before submit this task.

I had a lot of information about the personal loan and many brochures from
the banks but I do not have an enough time to do with the lot of classes and an
outdoor activities. I looked for my lecturer to ask about this task because I really

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don’t understand about a calculation of the rates of payment and about the bank but
I understand the lecturer is busy. If the students are very busy, the lecturer must be
very busy too.Alhamdulillah, a day before this task must be submitted, I get ask the
lecturer. After this, when I have or get a new assignment, I will do early although I do
just a little. When I have an assignment in grouping like this, I think we must
separate when do the task. If we want do together, it makes late and more to speak
or eat than do the task.

NAME : WAN NUR ASHIKIN BT WAN ROSLAN

Give thanks to Allah because give me a very good health and give me
strength to do mathematics task with my beloved friends Nur Diyana Bt Shaiful Bahri

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and Nur Syafiqah Bt Jasni. My friends and I work hard to finish our task. This task
are grouping of 3 consist me Wan Nur Ashikin Bt Wan Roslan, my friends Nur
Diyana and Nur Syafikah. This task was given on 13th September 2009 and must be
submit on 1st October 2009.On 13th September 2009, Mr Mohd Yusof Bin Mohd was
explain about the task.

So the reflection is about the strength and weaknesses when doing this task.
After we got the task,we had decide to go to bank that offer the personal loan. After
that we can compare all the rates of payment among the bank to got the chepers
rates of payment for personal loan. The strength while doing this task is,my friends
and I got experience and got knowledge about personal loan. Actually, we don’t
know what is personal loan. So we decide to go to bank that offer personal loan and
meet someone who can story us about what is personal loan. I think this is intresting
task because when we got the task we think it is so dificult to do because we don’t
know what is personal loan. But for this task, we thing we must know personal loan
because it can help us for our future.

The next strength is, we got more knowledge when we go to BSN. We meet
the bank staff to get more information about personal loan. Lastly, my friends and I
get permission to meet the bank staff. He is Mr Mohammad. He expalain to us about
personal loan and from that we know more about personal loan and how to calculate
the rates of payment.

The sterenght from this task is my friends and I can give a very good respond
for this task. We cooperate to do this task very well even we don’t know about this
task before this. And we also do this task on holiday.

We also have weaknesses for this task. We don’t have enough time to do this
task because this task are given before holiday. But we can start early like before
holiday because we must go to bank at Kuala Terengganu. It is difficult to us
because we don’t have any transport to go there. And because we are junior or new
students in this ipg so we don’t know where is the bank located. So it become more
difficult to us.

Second, we must got brochure from bank first. So my friends and I go to bank
on 3rd Raya Fiest. We can get the brochure but we cant discuss together because
we are in different place.so we decide to do it after holiday at the hostel. But it make

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me more stress because we not got enough sleep to finished this task problem. We
also just have 4 days to do this task.

So to overcome this weaknesses, we try to finished this task in 4 days. And

we coorperate without any complain to make sure our task are finished and complite.
We also meet Sir Hamdan to settle our problem in this task. And we try to use our
time to finished this task very well.

REFERENCE
• http://smartconsumerbanking.com/2007/02/23/cashing-in-on-personal-
loan/
• http://www.bsn.com.my/pinjaman/sandaranstt.asp
• http://www.agrobank.com.my/article.cfm?id=813
• www.bankrakyat.com.my
• www.bankislam.com.my
• www.cimbbank.com.my

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APPENDIX

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