RHB Bank Bhd is targeting to approve RM1 billion in new loans within three or four months of the first phase of its newly launched RHB MY1 Revolving Home Loan plan.
“We initially have a RM1 billion cap (in new loans) before opening it up for a second tranche, and we should be able to do that in three to four months,” RHB Bank’s newly appointed head of retail Renzo Viegas said.
He said although the market for home loans was not growing as fast this year compared to last year, the bank aimed to grow its mortgage portfolio faster than market rate, and secure a top three spot in new approvals of loans this year.
He said the new home loan would boost the bank’s market share, which now stands at close to 7% of the home loan segment.
Speaking to reporters after the launch of RHB MY1 Revolving Home Loan here yesterday, Viegas said RHB Bank, the country’s fourth largest lender, may offer more retail products this year to fulfil customers’ needs.
The home loan is the first in the market with a revolving feature, allowing customers to withdraw up to the approved loan amount, which included the paid monthly instalments and any extra payments that had been credited to the loan account, he said.
He said withdrawals could be made as often as needed, without any service charge, although interest would be charged on the re-drawn amounts.
“Be it to seize investment opportunities, improve cash flow, invest in the children’s education or even purchase a second property or car, RHB MY1 Revolving Home Loan provides unparalleled flexibility,” Viegas said.
However, the combined withdrawn amount must remain within the approved home loan limit, and each withdrawal must be a minimum of RM5,000.
The home loan does not require any legal documents and customers are not charged a penalty fee for prepayment. There is also no commitment fee charged for any unused amount in the loan account, and lump sum payments can be made at any time to reduce the loan amount and interest. - By The Edge Daily
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