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Frequently Asked Questions

What is a hire purchase facility?
A hire purchase facility allows you to purchase consumer goods by making an initial down payment and paying the remaining amount in installments over a specified period.
What is the down payment requirement for hire purchase?
The down payment requirement is 30% of the total cost of the goods.
What fees and charges apply to hire purchase?
The fees and charges include an interest rate of 14.5% per annum, a service charge of 1%, and MMCB fees of 12,000 MMK per application.
What are the key benefits of using hire purchase?
Key benefits include easy application from uab’s dealers, quick approval, easy EMI payments through uab pay, and the ability to own high-value consumer goods with an affordable initial down payment.
Can I prepay my hire purchase loan before the end of the tenor?
Yes, prepayment is typically allowed, but specific terms and any potential penalties should be confirmed with the bank.
What happens if I miss an EMI payment?
Missing an EMI payment may result in late payment fees, higher interest charges, and potentially affect your credit score. It is important to contact the bank immediately to discuss possible solutions.
How long does it take to get approval for a hire purchase application?
Approval for a hire purchase application typically takes a few days to a week, depending on the completeness of your application and the bank’s processing time.
What documents do I need to submit when applying for hire purchase?
Required documents generally include proof of identity, proof of income, employment verification, and details of the goods to be purchased.
Are there any penalties for early repayment of the hire purchase loan?
Penalties for early repayment can vary. It is important to review the terms of your hire purchase agreement or consult with the bank to understand any applicable fees.
Is there a maximum limit on the amount I can finance through hire purchase?
The maximum limit on the amount you can finance is typically determined by the bank based on your financial profile and the cost of the goods.