Solar Plus Loan

This conventional term loan pays for the purchase and installation of a residential solar photovoltaic system, which generates electricity from sunlight. Repay it over 3–10 years. After you confirm installation, the bank pays the approved solar company.

Interest is calculated daily at a variable rate. The Standardised Base Rate (SBR) follows Bank Negara Malaysia’s Overnight Policy Rate, so your interest and monthly instalments can rise. The September 2026 disclosure illustrates SBR of 2.75% plus 2.40 percentage points, giving 5.15% a year; this is an illustration, and your letter of offer sets your terms. Pay each monthly instalment in full and on time. If you pay by standing instruction, update it when SBR changes. The bank may revise instalments if payments do not cover monthly interest, less than 10% goes towards principal, a revision is made or requested, or payments would not clear the loan by maturity.

Extra money paid after your instalment and charges counts as an advance payment, rather than a repayment that reduces the loan principal. It offsets the balance used to calculate interest, up to 30% of the outstanding balance including charges. You may withdraw these advance payments with written notice; the fee is RM50 per request, plus applicable government tax.

The processing fee is RM0, subject to service tax. The product disclosure says no disbursement fee applies. There is no lock-in period or early redemption or settlement fee; speak to the bank if you want to settle early. Stamp duty follows the statutory scale; legal fees follow the Solicitors’ Remuneration Order, and valuation fees follow the Board of Valuers, Appraisers and Estate Agents Malaysia scale. A redemption statement for individual home financing costs RM50 plus applicable tax. A request to change pricing costs 0.1% of the outstanding balance, with a minimum of RM100 and maximum of RM200, plus applicable tax. Optional document and statement requests and payment services can attract charges, and postage or courier costs apply where relevant.

Late payments attract 1% a year on the amount overdue, with interest compounding where applicable. Additional interest increases the contracted rate by 1.50 percentage points on the third occurrence of being 31 days overdue within 12 months, and by 2.50 points at 100 days overdue. At the first tier, the contracted rate is reinstated when the account is less than 31 days overdue; at the second tier, the surcharge falls to 1.50 points when it is less than 90 days overdue. The bank may use money in your accounts with it to repay the debt. If you do not respond to its reminders, it may sell the secured property or take legal action; you bear the costs and any debt left after the sale. Default can also affect your credit score. Contact the bank immediately if you cannot pay.