In the n

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 TOPIC

Mr Safwan, a bachelor works as a teacher in at Sekolah Kebangsaan

Sungai Limau, Sabak Bernam. He is the oldest child of his five siblings. As
an oldest child, he has to earn his parents and siblings every month. As the
distance of his school and his parent’s house was far away, he has to rent a
house. Besides that, he had to spend a lot of money on petrol since that he
has to go and back to his parent’s house because they are not feeling well
and his school is too far. It spends more money as his village at Teluk Intan,
Perak.

Apart from that, Mr Paul Safwan has to spend more on the monthly
electrical bills, water consumed, phone bills, car loan, keepment and utility
and surely his monthly expenses. He also provides his saving budget for
emergencies.

However, Mr Paul face a problem in arranging his budget because of

the low rate of country’s economy development within his income for just RM
2 500.

To overcome his problem, he must decide on which financial institution

is suitable for him to make a personal loan about RM 50 000.00 with his
income RM 2 500.00 and the repayment period up to 15 years?

INTRODUCTION
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 We can build a successful money management through many ways.
One of
the ways is by making personal loan. Loan is an amount of money
that you borrow from a bank. Personal loan can be from Islamic or
Conventional
Financial Institution (Licensed).

In our life, we should decide firstly before we want to make a

decision, the finance aspect too. Before we want to make a personal
loan, we must study deeply about the repayment and offers given.
The repayment should be
affordable for us. So. We should plan it carefully as it suitable with our
job.

This topic is essential to help us to learn how to cope with future

challenges
using financial abilities. This situation is also aim to foster moral
values in line
with our economic development.

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OBJECTIVES

➢ To arrange the personal budget based on monthly income, personal

loan made and other payment.

➢ To find the smallest and relevant interest that offered by financial

institution.

➢ To compare the rate of interest that is offered by three financial

institution choosen.

➢ To decide which personal loan suit to the income

➢ To justify which personal loan is the best

➢ To explore and understand fractions, decimals and percentages.

➢ To appreciate the application of ratios in regular savings, simple and

compound interest.

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➢ Compare and contrast all the various offers from the financial
institutions.

MR SAFWAN‘S PERSONAL BUDGET

No BUDGET RM / Month

1 Electrical bills 50

2 Water consumption 50

3 Phone bills 100

4 House rent 300

5 Car 300

6 Parents 200

7 KWSP 275

8 Saving and 200

emergencies

9 Utility 100

10 Monthly expanse 250

TOTAL 1825

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 To find the KWSP payment:

11 % X total income

11 % X RM 2 500

= RM 275. 00

View of Mr Paul’s monthly personal budget when being interpreted in a pie

chart :

MR SAFWAN’S MONTHLY PERSONAL BUDGET

From Mr Safwan’s personal budget, we found that

A) the total for the monthly budget is RM 1825 . 00

B) The balance from the income is :

Total income (monthly) - total monthly budget

= RM 2500.00 - RM 1825 .00

= RM 675 .00

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 ANALYSIS OF
BUDGET PROPOSALS
FOR MONTHLY
AND ANNUAL EXPENSES
BASED ON MONTHLY INCOMES, OF :

BANK RAKYAT

BANK SIMPANAN NASIONAL (BSN)

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AMISLAMIC BANK
• Bank Simpanan Nasional (BSN)

Bank Simpanan Nasional (BSN) offers the maximum rate

of repayment for 18 years. Otherwise, to make sure the paying rate is same
with other financial banking, we take the repayment period for 15 years. The
percentage of payment is 3.5 %.
______________________________________________________________

To find the sum of interest for 15 years,

Interest to be paid = Loan × Interest given by institution × years for

repayment in 100
15 years

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 =RM50000×3.50×15
100

= RM 26 250

Then, the amount that should be paid is calculated by adding the interest and
loan.

Amount should = Total interest + Loan

be paid

= RM 26 250 + RM 50 000

= RM76 250

Therefore, RM 76 250 should be paid for 15 years.

To get the monthly expenses = Amount should be paid

12 ×15

=RM76250
180

= RM 423.61

To get annual expenses = Amount should be paid

15

= RM 76 250
15
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 = RM 5083.33

Based on the calculation above, it shows that Bank Simpanan Nasional ( BSN
) sum of interests for 15 years is RM 5083 . 33.

• Am Islamic Bank

Am Islamic Bank is an Islamic Financial Institutions that

offers the period payment up to 180 years with other special offers. The
maximum rate within the period wanted is 24 years. Thus, to sychronise with
other bank, we take the payment period up to 15 years only . The interest
provided by this institution is 6.30 %.
______________________________________________________________

To find the sum of interest for 15 years,

Interest to be paid = Loan × Interest given by institution × years

for in 15 years 100
repayment

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 = RM 50 000 × 6.30 × 15
100

= RM 47 250

Then, the amount that should be paid is calculated by adding the interest and
loan.

Amount should = Total interest + Loan

be paid

= RM 47 250 + RM 50 000

= RM 97 250

Therefore, RM 97 250 should be paid for 15 years.

To get the monthly expenses= Amount should be paid

12 ×10

=RM97250
120

= RM 810 . 42

To get annual expenses= Amount should be paid

15

=RM97250
15
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 = RM 6483.33

_____________________________________________________________

Based on the calculation above , it shows that Am Islamic Bank sum of

interests for 15 years is RM 6483 . 33

• BANK RAKYAT

This bank , ‘ Bank Rakyat ‘ make a delightful offer in

honour of Hari Raya. It offers the payment rate up to 15 years with an
interest provided by this institution is 5.00%.

______________________________________________________________

To find the sum of interest for 15 years,

Interest to be paid = Loan × Interest given by institution × years

for in 15 year 100
repayment

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 =RM50000×5.00×15
100

= RM 37 500

Then, the amount that should be paid is calculated by adding the interest and
loan.

Amount should be paid = Total interest + Loan

= RM 37 500 + RM 50 000

= RM 87 500

Therefore, RM 93 500 should be paid for 15 years.

To get the monthly expenses= Amount should be paid

12 ×10

=RM87500
120

= RM 729.16

To get annual expenses= Amount should be paid

15

=RM87500
15

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 = RM 5833. 33

______________________________________________________________

Based on the calculation above, it is found that Bank Rakyat sum of interests
for 15 years is RM 5833. 33

TABULATING THE DATA BASED ON THE REPAYMENT RATE AND

FINANCIAL INSTITUTIONS

6.3%

5.0%

3.5%
DECISION

WHICH FINANCIAL INSTITUITION IS THE BEST FOR MR SAFWAN?

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B SIMPANAN AMIB BANK RAKYAT
NASIONAL
 After a conscientious searching, we conclude that the best financial
Institutions for Mr Safwan are Bank Rakyat.

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 This does not means that the other bank is bad, but those banks are
not quite suitable for now Mr Safwan’s conditions and state. I think it is the
most suitable for Mr. Safwan to choose it. Furthermore, Bank Rakyat declares
many offers that give benefits to him.

Among Bank Rakyat offers are :

• The payment rate for 15 years

• Special for teachers in honour of teacher’s day

• No need to subsidise back

• A subsidise till RM 150 000 , including their customer’s desire’s things

• Without guarantee

• Instant improvement

• Constant interest rate

• Take care of Takaful Insurance

Thus, by these offers it may help Mr Safwan in arranging his budget

wisely. He does not more to worry about his responsibilities towards his
family mainly his beloved parents. He; in the other hand can manage his
saving in order to handle the implementation of low rate of country’s economy
development.

Besides that, after the calculation made, it shows that Bank Rakyat
serves the constant value of interests for 15 years which is RM 5833 . 33
compared the two bank that the value of interest will increase every year. We
can see that through this table above :
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To concrete this perspective, we would like to complete this task with the table
of interests for Bank Rakyat within the loan of RM 50 000 and the payment
period up to 15 years.

CONCLUSION

After we investigate and calculate all the budget, interest and the
amount of money should be paid per month, we had found the best financial
institution. Every personal loan to be made should have its own terms and
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conditions. All the offers given by the financial institutions are to give
opportunity to us to manage our daily personal utility. Facilities provided was
based on the method that allow the postponed payment to minimize our
financing load or save budget from more expensive loan.

A person can make two types of personal loan. They are government
employees, statutory bodies and private employees. For private employees
the loan is valid in 24 hours. This is one of the special advantages for them.
Every loan has its own interest rate. The interest rates depend on the
institutions. The financial institution will enact the interest rate and the
repayment period.

Last but not least, the government must encourage the people by
organising some campaign about loan officially in order to produce people
with systematic daily management.

BIBLIOGRAPHY

Pamphlet of bank
1. BSN
2.AM ISLAMIC BANK
3. BANK RAKYAT

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