Housing Loan Packages

Common Housing Loan Packages Offered by Financial Institutions

Term Loan  

  • A facility with regular predetermined monthly instalments. Instalment is fixed for period of time, say 30 years
  • Instalment payment consists of the loan amount plus the interest

Overdraft facility  

  • A facility with credit line granted based on predetermined limit
  • No fixed monthly instalments as the interest is calculated based on daily outstanding balance
  • Allows flexibility to repay the loan anytime and freedom to re-use the money
  • Interest charged is generally higher than the term loan

Term Loan and Overdraft combined  

  • A facility that combines Term Loan and Overdraft. For example, 70% as term loan and 30% as Overdraft
  • Regular loan instalment on the term loan portion is required
  • Flexibility on the repayment of overdraft portion