Page 25 - FIN435 RHB vs BPMB

ADVANTAGES DISADVANTAGES
• It is flexible cause can borrow only • Need to pay an arrangement fee if

what we need at the time which may want to extend overdraft period.
make it cheaper than a loan.

• It’s easy and quick to arrange. • The bank could charge if exceed
overdraft limit without authorization.

• There Is no charge for paying off the • The bank has the right to ask for
overdraft earlier than expected. repayment of your overdraft amount

at any time.

2. Credit Card

RHB Bank Credit Card to be used primarily for the payment of goods and services.
Where any amount of the credit utilized by you has not been settled in full on or before

the due date, the unsettled amount will be subject to finance charges. RHB bank
provides 8 types of credit card and each card have different amount minimum and
maximum amount. Interest rate for those cardmembers who promptly settle their
minimum payment due for 12 consecutive months are 1.25% per month while 15% per

annum. For cardmembers who promptly settle their minimum payment due to at least
10 months or more in a 12-month cycle. The 12 months minimum payment due to cycle

will not apply to new cardmember are 1.42% per month and 17% per annum. Lastly for
cardmembers who do not fall within the above categories are changed 1.50% per
month while 18% per annum. In additions for cash advance fee, 5% of the transaction

amount or a minimum of RM15.00, whichever is higher will be charged on all cash
withdrawals and licensed betting transactions. For late payment charges maximum of

1% of the outstanding balance or a minimum of RM10, whichever is higher, subject to a
maximum of RM100. A fee of RM50 may be charged for excess limit transaction and
RM50 per card replacement fee. Below are advantages and disadvantages of credit

card.

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