TERM LOAN

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Note 8. TERM LOAN

On December 23, 2014, MYR2,300,000 (approximately $657,507) term loan was granted to the Company for the purchase of a four-story office with a repayment period of 240 months.

The term loan was secured by the title deed for the said property and guaranteed by directors of the Company. The term loan is subject to an interest charges at 2.10% per annum below the Bank’s Base Lending Rate (“ BLR” ) with daily rests. The BLR is currently at 6.85% for June 30, 2019.

On July 27, 2015, the Company made a drawdown of MYR2,300,000 (approx. $609,554) on the term loan. The repayment started effectively on September 1, 2015 with a fixed installment of MYR14,863.14 (approx. $3,561) for 240 installments.

The outstanding balance of the term loan is $485,873, of which $21,666 is due within one year and classified as short term, and $464,207 is due after one year, and has classified as long term.

Interest expenses were $12,138 and $12,703 for the six months ended June 30, 2019 and 2018, respectively.

	June 30,		December 31,
	2019		2018
Repayable within 1 year.	$	21,666	$	21,090
Repayable within 2 year		22,696		22,094
Repayable within 3 year		23,774		23,145
Repayable within 4 year		24,880		24,236
Repayable within 5 year		26,023		25,352
Repayable after 5 year		366,834		377,584
Total Due from		485,873		493,501