TERM LOAN

9 Months Ended

Sep. 30, 2021

TERM LOAN

8. TERM LOAN

8. TERM LOAN

On December 23, 2014, MYR 2,300,000 (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 charge at 2.10% per annum below the Bank’s Base Lending Rate (“BLR”) with daily rests. The BLR is currently at 6.85% for September 30, 2021.

On July 27, 2015, the Company made a drawdown of MYR 2,300,000 (approx. $609,554) on the term loan. The repayment started effectively on September 1, 2015 with a fixed installment of MYR 14,863.14 (approx. $3,561) for 240 installments.

The outstanding balance of the term loan is $332,636, of which $42,619 is due within one year and classified as short term, and $290,017 is due after one year, and has classified as long term.

Interest expenses were $8,861 and $17,718 for the nine months ended September 30, 2021 and 2020, respectively.

	September 30,		December 31,
Periods	2021		2020
Repayable within 1 year	$	42,619	$	32,058
Repayable within 2 years		32,920		33,132
Repayable within 3 years		34,023		34,242
Repayable within 4 years		35,163		35,389
Repayable within 5 years		36,341		36,575
Repayable after 5 years		151,570		204,070
Total		332,636		375,466