Document background
The Loan Transfer Application Letter is a crucial document in the Malaysian banking system that initiates the process of transferring an existing loan facility between financial institutions. It is commonly used when borrowers seek better interest rates, more favorable terms, or improved service from a different bank. The document must comply with Malaysian banking regulations, including the Financial Services Act 2013 and Bank Negara Malaysia guidelines. This letter typically includes comprehensive information about the existing loan, the applicant's current financial status, employment details, and the desired transfer terms. It serves as the primary document for evaluation by the receiving financial institution and forms the basis for their assessment of the transfer request. The letter should be accompanied by various supporting documents as specified by Malaysian banking requirements, such as income proof, existing loan statements, and property valuations where applicable.
