Page 24 - FIN435 RHB vs BPMB

Advantages Of RHB Internet Banking Disadvantages Of RHB Internet Banking

Ease customer transaction activities Customer data become vulnerable and
such as money transaction and billing could lead to phishing scams such as
payment with cashless transaction. email phishing.

Convenience because it 24 hours Possibility of fraud. Some cases happen
available and customer don’t have to when scammer imposed as bank officer
come to bank branches and could saves to gain personal information such as

their time. password and id from customer.
Environmentally friendly and more Lack of personal guidance and

economic because bank don’t have to assistance from bank officer such as
use paper for documentation such as personal advisor due to no personal
receipts and can save their cost. contacts activity.

ii) Credit Facilities

RHB Bank Berhad also provides credit facilities to the customers. There are two
types credit facilities that RHB Bank provided which is short-term loans and Long-term
loans. The first product that are under short-term loans is overdraft.

1. Overdraft

Overdraft is a revolving credit that remain open as long as the borrower handles the
account in a satisfactory manner and comply to the terms and conditions stipulated by
RHB Bank Bhd. As such, the facility is subject to periodic review and repayable on

demand. Overdraft also generally used for personal consumption and it provides
flexibility to the borrower to utilize and to repay at any time needed riding on the
Current Account. Our pledge unencumbered ASB/ASW certificates to apply OD/TL with

following criteria: 95% financing for business purpose and 67% financing for personal
consumption. The characteristics of overdraft by RHB Bank offers to their customers
are up to RM95 000 for overdraft limit, up to 95% margin of financing, repayment based

on periodic review and payable on demand, ASB Board Rate is KA + 2.20% p.a.,
Current Base Rate is 3.90% p.a. and effective lending rate is 6.10% p.a. Under this

product, there are some charges RHB bank charged to their customer which is first is
insurance of RM10 for Letter of Offer, second is Commitment Fee 1% per annum only
for above RM250 000, third is Endorsement Fee depends on facilities and lastly other

Fees, Taxes and Expenses. The advantages and disadvantages of overdraft are
shown below.

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