Financial Glossary



Rebate - Partial refund of the term charges (interest) calculated according to a formula stipulated in the Hire-Purchase Act 1967, if the hirer made an early settlement.

Redraw Facility - The flexibility granted to borrowers to withdraw surplus money repaid to banking institutions.

Reference Rate - An interest rate used by banking institutions to price a loan or credit facility. The reference rate is determined based on a formula which reflects the banking institution's cost of funds, administrative cost and business strategies. An example of a reference rate is the base lending rate.

Refinancing - The process of paying off a portion or the entire amount of the existing loan with the intention of obtaining another loan from the same or another banking institution.

Remittance - Mode of forwarding money to someone.

Repayment Mode -

Fixed monthly repayment
A scheme that allows borrowers to pay a fixed installment sum every month until the end of the loan tenure.

Flexi monthly repayment
A scheme that allows borrowers to repay a higher repayment amount than its monthly installment anytime without the need to seek banking institutions' approval.

Repossess - When the owner of the motor vehicle (i.e. banking institution) takes back possession of the motor vehicle from the hirer.

Repossessor - A person authorized by the owner (i.e. banking institution) to repossess motor vehicles from defaulted hirers on behalf of the banking institution. The repossessor has to be registered with the Association of Hire Purchase Companies Malaysia.

Revolver - Cardholder who keeps paying at least the minimum amount of payment required by the credit card issuer but not fully repaid the total outstanding balance.

Riba’ - The excess paid or received over and above the principal in a loan contract.



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