01 October 2019

Credit Card Auto Balance Conversion


Dear Valued Customers,

Please be informed that with effect from 1 November 2019, you will be automatically enrolled for the Auto Balance Conversion programme if you meet all the eligibility criteria listed below:
  • A Malaysian Nationality
  • Annual income equal or less than RM60,000 (as per your records with Alliance Bank)
  • Did not make full payment for credit card outstanding balance for the past 12 months
  • Over the past 12 months your average credit card(s) repayment is not more than 10% of your total outstanding balances.
  • Credit Card Account is at Current status and not delinquent.
The Auto Balance Conversion is a Credit Card Programme that converts your outstanding Credit Card balances to a 36-month installment automatically every 12-month basis at a lower effective interest rate of 13% per annum. You will be notified 1-month prior to conversion If you meet the eligibility criteria listed above. There will be no processing and cancellation fee if full repayment is made prior to maturity.

Please refer to the illustration below on the process of Auto Balance Conversion and the comparison of the monthly payment due after the Auto Balance Conversion*:

a) Process of Auto Balance Conversion
Auto Balance Conversion Process
  • Alliance Bank will auto-enroll the eligible Cardholders.
  • Upon enrolment, the outstanding statement balance will be converted after the payment due date + 4 calendar days.
b) Comparison of the monthly payment due with Auto Balance Conversion*
  • With Auto Balance Conversion
  Month 1 Month 2 Month 3
Outstanding Balance (RM) 10,000 - -
Auto Balance Conversion (RM) 9,500 - -
Minimum Payment Due (RM) 500 320 320
Auto Balance Conversion Balance (RM) - 9,283 9,063
Effective Interest Rate (%) 13%
  • Without Auto Balance Conversion
  Month 1 Month 2 Month 3
Outstanding Balance (RM) 10,000 9,635 9,281
Minimum Payment Due (RM) 500 482 464
Effective Interest Rate (%) 17%

* Note: The illustration of the comparisons of the monthly payment due after the Auto Balance Conversion is based on the following assumptions:

1. Cardholder makes a monthly minimum payment of 5%.
2. There is no new retail spending or cash advance made following from the conversion.
3. The outstanding balance consists of retail spend only and revolves at 17% per annum.
4. The monthly installment amount from Auto Balance Conversion is RM320 and 100% of installment amount is demanded. You may opt out from this Programme by contacting our Contact Centre @ 03-55169988.
For more information, please refer to the following: Thank you.