Getting a personal loan in Malaysia is easy because many banks are offering personal loans in Malaysia. If you have a stable job, you can apply for a personal loan which is a temporary solution for your money problem but more or less it is a solution.
There are many banks which are offering personal loan banking services for people in Malaysia on low-interest rates. The interest rate depends upon your job status if you are employed privately you will have to pay low interest rate and if you are a government servant you will have to pay more interest rate.
There is a number of reasons why people are hesitant in acquiring loans and the main reason is that they don’t like paying high interest rates with loans. We have listed tips and advises at the end of this article which is going help you in the process of getting your personal loan.
Getting a Personal Loan in Malaysia
Acquiring a personal loan in Malaysia takes 48 hrs because many banks are offering personal loans in Malaysia. Consider you want to borrow 30,000 Malaysian ringgits for 3 years. You have a monthly salary of 5000 RM. If you are privately employed you will have to pay 983 RM per month with an interest rate of 5.99%.
For government servants, they will have to pay 1133 RM per month with an interest rate of 12.00%. Interest rates also depend on the rapidly changing market and the production of the country.
Apply Personal Loan in Malaysia
When applying for a personal loan you will be asked some questions and you need to answer them correctly. If you want to secure your personal loan.
Personal loan approval Procedure is given below:
Getting a Conventional loan in Malaysia
Firstly, you will be asked about some basic information like your Name, Email, Phone number, and monthly income when submitting your application through the internet. Secondly, you will be asked for an identification number (IC or Passport) and the name of the place where you live. Lastly, you will be asked about your current job status and your relationship with other banks or the number of credit cards you have.
Once you have completed your application and successfully submitted. The Bank will contact you to further process your application. Duration of loan approval is between 2 to 5 business days and loan tenure can be between 1 to 7 years. You can apply for a personal loan through many banks online.
Requirements for a Conventional Personal Loan
To get a conventional loan you need to fulfill the requirements. You must be at least 18 years old Malaysian resident. You need to have minimum income as per stated by the bank.
The minimum loan amount is 500RM or as stated by a bank and you need to pay stamp duty (0.5% of the loan amount) when acquiring a loan.
Penalties for non-payment of the Personal Loan
If you are unable to pay your conventional loan in 7 years, the bank will impose penalties on you. You will have to pay 1% p.a. on the outstanding loan amount.
Getting an Islamic Personal Loan in Malaysia
You can get Islamic personal loan in Malaysia through many banks offering Islamic personal financing under shariah rules. The process of loan is the same as the conventional loan but loan requirements are different. The basic requirements for Islamic loan are given below.
Requirements for an Islamic Personal Loan
Fulfilling requirements is a must to get an Islamic loan. You need to be at least 25 years old and must have a linked bank account. Minimum income of more than 4500RM is required or as stated by the bank. Minimum financing amount is 10,000 RM or (as stated by the bank) with a maximum tenure of 8 years.
Islamic Personal loan offers a fixed interest rate of 6.99% (as stated by the bank). Bank also encourages applicants to buy a Takaful product (Islamic Insurance) along with this. Stamp duty for this loan is the same as the conventional loan that is 0.5% of the loan.
If you are unable to pay your debt in 8 years, the bank will impose penalties on you as per Shariah ruling.
Top 6 Malaysian Banks Offering Personal Loans
There are many banks offering a variety of personal loans in Malaysia. We have listed six banks offering low interest rates as compared to other banks.
|BANKS||Loan Package||Finance Value||Financing Period||Income||Profit Rates|
|Alliance Bank||Cash Vantage Personal Financing I||RM5000 – RM150000||12 to 84 months||min. RM36000||3.99 – 14.78% p.a.|
|UKHWAH||Personal Loan Package Cash I||RM2000 – RM200000||24 to 120 months||min. RM1500||4.3 – 4.99% p.a.|
|Citibank||Personal Loan||RM5000 – RM150000||24 to 60 months||min. RM48000||5.88% p.a.|
|Al Rajhi Bank||Personal Financing-I||RM10000-RM150000||24 to 96 months||min. RM60000||6.99% p.a.|
|Standard Chartered||CashOne||RM3000 – RM250000||12 to 60 months||min. RM36000||6.99% p.a.|
|Alliance Bank||Cash First Personal Loan||RM5000 – RM150000||12 to 84 months||min. RM36000||3.99 – 14.78% p.a.|
Loan Interest rate can change from time to time depending on market and the value of ringgit.
You can visit bank’s websites for more information but we have listed basic information about the personal loan packages right here.
When Applying for a Personal loan remember these tips
There are many things you need to take care of when applying for a personal loan, few of them are given below:
- Don’t acquire a loan until you have a plan for returning it.
- Limit loan funds usage to yourself.
- Consider visiting a bank for Personal Loan never give personal information on unofficial websites.
- Educate yourself about it and different products offered by banks.
- Never take the decision without calculating risk.
- Never apply for a loan with high-Interest rates.
- After acquiring Personal loan always set aside money on monthly basis to repay your debts.
- Always consider the loan as your last option.
Getting a personal loan in Malaysia is easy but it is way harder to pay it back with interest. So, I want to encourage you to start saving money for harsh times. In every difficult situation loan should be your last option because after spending borrowed money your life is not going to become easy, it will become harder. I hope this information will help you on your journey of getting a personal loan.