MKH Berhad 199 32. LOANS AND BORROWINGS (CONT’D) The hire lease liabilities bear effective interest at rates ranging from 1.71% to 6.00% (2020: 1.71% to 6.00%) per annum. The term loans and revolving credits bear effective interest at rates ranging from 1.95% to 4.98% (2020: 1.97% to 4.98%) per annum. The bank overdrafts bear effective interest at rates ranging from 5.82% to 6.70% (2020: 5.82% to 6.70%) per annum. Secured revolving credit I of RM49,444,000 (2020: RM49,444,000) is part of the total revolving credit of RM50,000,000 which is repayable by way of redemption upon the full settlement of secured revolving credit II. Secured revolving credit II of RM33,000,000 (2020: RM55,000,000) is part of the total revolving credit of RM110,000,000 which is repayable by 10 equal half yearly principal instalments of RM11,000,000 each over 8 years commencing on the first day of the 42nd month following the date of first drawdown or payment by way of redemption whichever is earlier. Secured revolving credit III of RM52,962,650 (2020: RM52,383,700) is part of the total revolving credit of RM90,000,000 which is repayable by 18 equal quarterly principal instalments of RM5,000,000 each over 4 1/2 year commencing on the first day of the 31st month following the date of first drawdown or payment by way of redemption whichever is earlier. The revolving credits are secured and supported as follows: (a) legal charge over the freehold land for property development of subsidiaries; (b) debenture by way of fixed and floating charge over the land held for property development of subsidiaries; and (c) corporate guarantee of the Company. Secured revolving credit IV of RM20,000,000 (2020: RM15,900,000) is repayable on demand. The revolving credit is secured and supported as follows: (a) legal charge over the leasehold land held for property development of a subsidiary; and (b) corporate guarantee of the Company. Term loan I of RMNil (2020: RM35,429,822) is part of the total term loan of RM55,000,000 and is repayable by 4 quarterly principal instalments of RM5,000,000 each and 5 quarterly principal instalments of RM7,000,000 commencing on the last day of the 30th month from the date of first drawdown or payment by way of redemption whichever is earlier. Secured revolving credit V of RM10,000,000 (2020: RM15,000,000) is repayable by 3 quarterly principal instalments of RM5,000,000 each over 3 years commencing on the last day of the 36th month following the date of first drawdown or payment by way of redemption whichever is earlier. The term loan and revolving credit are secured and supported as follows: (a) specific charge and assignment over all designated accounts to be opened with the bank of a subsidiary; Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2021
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