CIMB Islamic Bank Berhad (671380-H)

FREQUENTLY ASKED QUESTIONS (FAQ)

CIMB Bank Berhad (13491-P)

1. What is Base Rate (BR)?

The Base Rate (BR) is the benchmark cost of fund of the bank in reference to KLIBOR. It is
affected by the monetary policy changes and market funding conditions.
2. Is Base Rate (BR) applicable to all types of facilities?
It is applicable to new retail loan/financing with floating interest/profit rates pegged to the
banks Base Rate (BR) except Hire Purchase financing.
3. Will the Base Rate impact on existing retail loan/financing facilities pegged to Base
Lending Rate (BLR)/Base Financing Rate (BFR)?
Existing retail loan/financing facilities with fixed financing tenor pegged to Base Lending
Rate (BLR)/Base Financing Rate (BFR) remains unchanged. Overdrafts/Cash Line facilities
with no fixed financing tenor that is renewed will reflect the new Base Rate.
4. What is the difference between BR and BLR/BFR?
Example of comparison between BLR/BFR and Base Rate:
Loan/Financing amount: RM350,000
Tenure: 30 years
Before 2 Jan 2015
Reference rate
BLR/BFR = 6.85%
Interest/profit rate
BLR/BFR 2.20%
4.65%
Effective interest/profit rate
(6.85% - 2.20%)
Monthly instalment
RM1,804

After 2 Jan 2015

Base Rate = 4.00%
BR + 0.65%
4.65%
(4.00% + 0.65%)
RM1,804

5. When will BR be adjusted?

The BR will be adjusted to reflect the changes to movement of the market benchmarks such
as KLIBOR or Overnight Policy Rate (OPR) that is significant to warrant a change.
6. How will customers be informed when there is revision of BR?
The bank will send notification letter to notify on the revised instalment amount when there is
revision of BR.
7. If I refinance my asset(s) from another bank to CIMB, will the BR be applicable to me?
Yes, BR is applicable for refinancing.
8. What will be the reference rate for top up of existing facility offered under BLR/BFR?
The top up loan will reference to BLR/BFR.


CIMB Islamic Bank Berhad (671380-H)
CIMB Bank Berhad (13491-P)

9. Can I opt to maintain my existing monthly instalment amount when the BR is
adjusted?
Yes, you can submit the request through CIMB Bank/CIMB Islamic Bank branches or CIMB
Preferred centres if you wish to maintain the existing monthly instalment amount but it will
be subject to approval.
10. Will there be any difference in BR between Conventional and Islamic retail
loans/financing?
BR for both Conventional and Islamic retail loan/financing is the same.
11. How do I calculate the revised instalment amount when there is revision of BR?
CIMB has property financing calculator to assist you to calculate the revised instalment
amount. Simply log on to www.cimbbank.com.my or www.cimbislamic.com