FIN368 credit management system

DIPLOMA IN BANKING
CREDIT MANAGEMENT (FIN368)
INDIVIDUAL ASSIGNMENT REPORT
PRODUCT AND SERVICES: HOUSING LOAN
PREPARED BY:
NAME: DANIA SOFEA BINTI MOHD ANUAR
CLASS: MBA1195H
MATRIX NO: 2019433056
PREPARED FOR:
SIR MOHD SUFIAN BIN AB KADIR
SUBMISSION DATE:
3 DECEMBER 2021

ACKNOWLEDGEMENT
In the name of Allah, the most Gracious, the most Merciful.
Praise be to Allah, Lord of the universe who give us an opportunity to complete
this assignment without any difficult challenge. Peace and prayers be upon His Final
Prophet and messenger Muhammad.
We would like to express a special thanks to our lovely Sir Mohd Sufian
because without him, we could not do our assignment. She always guides us and
help us for completing this task. He also checks our assignment and give a comment
if we have made a mistake. Other than that, he will ensure all of his students will
complete all task for this subject without having difficulties. His contribute and
kindness that he assists have make all of us feel easier and comfortable. We feel so
proud of our great sir.
Plus, we give a big thanks for those helping us either directly or indirectly for
completed this research. We can only pray that your good will be rewarded by Allah.
Finally, to our family, friends, thanks you for the endless help and support that you
have given to us.
Thank you.

TABLE OF CONTENT
1.1 Definition of housing loan.................................................................................3
1.2 Characteristics/Features of housing loan.........................................................3
1.3 Advantages and disadvantages of housing loan..............................................5
2.1 Moratorium related to the product and services...............................................6
2.2 Advantages and disadvantages of moratorium to the customers....................7
2.3 Impact on new customer and existing customer..............................................8
2.4 Demand on housing loan during covid-19........................................................9
3.0 Conclusion and recommendation.....................................................................10
Reference...........................................................................................................11

CHAPTER 1: INTRODUCTION OF PRODUCT
1.1 DEFINITION OF HOUSING LOAN
A housing loan is a form of loan service offered by the bank or other financial
institution that a person can use to finance the purchase of a home. Normally, the
customer takes a housing loan to buy a house or a piece of land for the purpose of
building a house, renovating or repairing an existing house. A housing loan is
different from other loans like personal or student loans since the bank can use your
house as collateral. Meaning, if a person fails to pay the bank on time, they can take
the procession of the home. In addition, property is a mortgage that is used as
security until the loan repayment is completed. The bank or financial institution will
hold the title of ownership of the property until the customer completes repaying the
debt and the title of ownership will be transferred to the customer.
1.2 CHARACTERISTICS/FEATURES OF HOUSING LOAN
There are several characteristics or features of a housing loan. The characteristics of
a housing loan consists of six which is eligibility, amount of loan, period of loan,
repayment, security and cost of borrowing. Eligibility means housing loan only for
people that are above 18 years old and below 60 years old who have a stable
income that are eligible to apply for a housing loan from a bank or other financial
institution. Normally, housing loans are for low-income and middle-income groups
who do not have the money to purchase or build a house. Moreover, self-employed
people can also apply to make a housing loan by following the criteria and
requirements set by the bank.
The second characteristic is the amount of loan. The minimum amount of loan starts
from RM80,000 (Maybank) while the maximum amount of loan will be decided by the
bank by looking at the income statement of the applicant. Other than that, there are
other factors that banks are considered before deciding the repayment capacity are
age, qualifications, status of assets, liabilities, stability and continuity of occupation
and savings history.