PRODUCT DISCLOSURE SHEET
Read this Product Disclosure Sheet before you decide to take the
Affin Islamic Murabahah Term Financing-i. Be sure to also read the
terms and conditions in the letter of offer. Seek clarification from the
Bank if you do not understand any part of this document or the general
terms.
Murabahah Term Financing–i
1. What is this product about?
Financing facility under Murabahah Term Financing-i maybe used to finance purchase of Completed Asset such as:a.
Business Premises
b.
Land
c.
Factory
d.
Equipment
2. What is the Shariah concept applicable?
Murabahah is a mark-up sale involving three parties, i.e. the Bank purchases the Asset from the Vendor/ Supplier and
sells it to the customer at a Sale Price on a deferred payment basis.
Bank shall adopt the Murabahah for Purchase Orderer (MPO) which refers to an agreement whereby the bank
acquires and subsequently sells a specified Asset based on an undertaking to purchase by the Customer (the
Purchase Orderer). In practice, the Bank shall appoint the Customer as its Agent to source for the Asset as well as the
details and payment terms for the Asset.
3. What do I get from this product?
Total Financing Amount: RM____________
Margin of Financing: _______%
Tenure: ________years
Profit Rate:
a)
Fixed rate : _______%
The profit rate charged shall be fixed throughout the financing period.
b)
Variable rate : _______%
Base Financing Rate (BFR) + margin.
The maximum capping rate (i.e. Ceiling Profit Rate) in determining the Bank‟s Sale Price is 12.0% p.a, unless
otherwise advised by Affin Islamic Bank. However, the monthly profit will be calculated based on the Effective
Profit Rate (BFR + xx%) which will not exceed the Ceiling Profit Rate.
*BFR currently is 6.60% p.a
4. What are my obligations?
Customer has the option to pay monthly installment/ quarterly installment/ half yearly installment.
Total payment (financing amount + profit) that you will be obligated to make is not more than the Bank‟s Sale
Price agreed up front (as per Bank‟s Letter of Offer).
The Bank‟s Sale Price will be computed as follows:
Purchase Price + (Purchase Price x Ceiling Rate x Tenure)
5. What are the fees and charges I have to pay?
Stamp Duty : As per Stamp Duty Act 1949 (Revised)
Costs and charges relating to the financing documentation shall be borne by the Customer.
For venture/financing where the arrangement is made via Investment Account Platform (IAP), the relevant fees
and charges shall be applicable.
Please refer to Bank‟s Letter of Offer for any other fees.
Note:
As a GST registered company, AFFIN ISLAMIC will be charging GST at 6% for all taxable supplies made to you
st
on 1 April 2015 onwards.
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Copyright 2015 Affin Islamic Bank Berhad (709506-V)
6. What if I fail to fulfill my obligations?
Customer shall pay the Bank late payment charges by way of Ta’widh (compensation) as follows:
Before maturity of the Facility
A sum equivalent to one per centum (1%) per annum on overdue instalment(s) until date of full payment;
= Overdue profit/installment x 1.0% x no. of days overdue
365
Upon maturity of the Facility
A sum equivalent to the prevailing daily overnight Islamic Interbank Money Market Rate on outstanding balance i.e.
outstanding Bank‟s Sale Price/Rental less ibra‟ (if any);
= Outstanding balance x prevailing IIMM x no. of days overdue
365
Please refer to other obligations stated in Bank‟s Letter of Offer.
7. What if I fully settle the financing before its maturity?
The Bank does not impose a lock-in period for this facility and there is no fee imposed for early settlement before
maturity. The Bank shall grant rebate (ibra‟) which is equivalent to the deferred profit at the point of settlement.
Ibra‟ (rebate) formula:
Ibra‟ (rebate) on early settlement = Deferred profit - reasonable estimate cost incurred by the Bank.
Note:
Deferred Profit = Total Contracted Profit – Accrued Profit
Total Contracted Profit = Bank‟s Sale Price – Purchase Price (or Financing Amount)
Accrued Profit is calculated on Effective Profit Rate of the outstanding principal (of Financing Amount) being
utilized.
8. Do I need any insurance/takaful coverage?
Yes. It is compulsory. Customer is required to obtain Takaful coverage from Bank‟s panel of Takaful operator.
For MRTT, the actual contribution cost is included in the financing package, subject to terms and conditions.
Notwithstanding this, the Bank may require any other Takaful coverage as stipulated in Bank‟s Letter of Offer.
9. What are the major risks?
The payment of Bank‟s Sale Price is by way of periodical installment, an increase in the Base Financing Rate
(BFR) as in the case of floating rate will result in higher installment; but is capped at Ceiling Profit Rate of 12%.
The Bank will notify customer on changes of installment prior to the effective date.
If you have problems to fulfill your financing obligations, please contact and discuss with us.
10. Where can I get assistance and redress?

If you have difficulties in making payments, you should contact us earliest possible to discuss payment
alternatives.

If you wish to make a complaint on the products or services provided by us, you may contact us at:
Affin Islamic Bank Berhad
th
15 Floor, Menara Affin Bank
80 Jalan Raja Chulan
50200 Kuala Lumpur
Telephone
:
1-800-88-3883
Fax
:
03-2026 5982
E-mail
:
[email protected]
Website
:
http://www.affinislamic.com.my

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:
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Copyright 2015 Affin Islamic Bank Berhad (709506-V)
Tingkat 8, Maju Junction Mall
1001, Jalan Sultan Ismail
50250 Kuala Lumpur
Telephone
:
1-800-88-2575
E-mail
:
[email protected]

If your query or complaint is not satisfactorily resolved by us, you may contact Bank Negara Malaysia LINK or
TELELINK at:
Block D, Bank Negara Malaysia
Jalan Dato’ Onn
50480 Kuala Lumpur
Telephone
:
1-300-88-5465
Fax
:
03-21741515
E-mail
:
[email protected]
11. What do I need to do if there are changes to my contact details?
It is important that you inform us (written notice to be sent to the account holding branch) of any changes in your
contact information to ensure that all correspondences reach you in a timely manner.
12. Where can I get further information?
Should you require additional information on financing, please contact us at our nearest branch to you or call our Call
Centre at 03-55223000 or visit our web site www.affinislamic.com.my for further details.
13. Other facilities available.
The Bank offers other term financing-i facilities with different concept such as Ijarah Term Financing-i, Istisna‟ Term
Financing-i, Musharakah Mutanaqisah Term Financing-i & Tawarruq Term Financing-i.
IMPORTANT NOTE:
YOUR PROPERTY MAY BE FORECLOSED IF YOU FAIL TO SERVICE THE MONTHLY INSTALLMENT
PAYMENT FOR FACILITY.
Disclaimer:
This Product Disclosure Sheet is for information purposes only and does not constitute any advice on any matter
discussed. All information and materials including those on services, products, financial information, data, text or other
items are provided strictly „as is‟, and „as available‟ and is so provided for your information and reference only. AFFIN
ISLAMIC does not guarantee the usefulness or adequacy of the information provided and shall not be liable for any
errors and will not be responsible for the consequences of reliance upon any opinion or statement contained herein or
for any omission. The precise terms and conditions of these products are specified in the GENERIC AND SPECIFIC
TERMS AND CONDITIONS APPLICABLE FOR ALL ISLAMIC DEPOSIT ACCOUNTS/ PRODUCTS/ SERVICES
and other terms and conditions applicable for these products (if any) which are available at AFFIN ISLAMIC and
AFFIN BANK branches and at www.affinislamic.com.my /www.affinbank.com.my. In the event there any inconsistency
(ies), conflict (s), ambiguity (ies) or discrepancy (ies) between the Bahasa Malaysia and English version of this
“Product Disclosure Sheet”, the English version of these “Product Disclosure Sheet” shall prevail. Notwithstanding the
aforementioned where request is made by the customer for the Bahasa Malaysia version of the “Product Disclosure
Sheet” herein, Affin Islamic Bank shall provide the same to the customer and if the agreement is entered into on this
basis, then the Bahasa Malaysia version of the “Product Disclosure Sheet” shall prevail. This Product Disclosure
Sheet is confidential and may not be reproduced (in whole or in part) to any other person without the prior written
permission of AFFIN ISLAMIC BANK BERHAD.
The information provided in this disclosure sheet is valid as at 8 August 2016.
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Copyright 2015 Affin Islamic Bank Berhad (709506-V)