Personal Loan Malaysia
Personal Loan in Malaysia
There are many options in applying for a personal loan in Malaysia. Many banks provide loan options to customers based on their credit record, income and repayment history. Occasionally, we will get calls from banks offering us personal loan or updating the amount that we are eligible to apply for.
In Malaysia, most personal loan application is hassle free, fast approval and no guarantor or collaterals required. Banks provide these facilities to ease customers in providing loans and easy repayment methods. Definitely that taking loans from banks will be more secure and transparent.
Customers are advised to apply loans with banks as all the terms and loan interest rates are clearly stated. If we need more briefing on the loan, customers can walk in a branch or call up the call center to discuss on the terms.
Banks also offer loan application online if you are familiar with internet banking. An application can be submitted online and if you have filled and provided all the relevant details, your loan will be processed and approved instantly. The processing period depends on which bank you are applying the loan with. It is easier to apply for loan with the bank you havesavings with as these banks have your credit scoring and payment history which will make loan application process faster.
How personal loan works?
A standard loan amount with fixed monthly instalment will be around minimum loan amount of RM5, 000and a maximum loan amount RM100, 000.Payment tenure will be minimum tenure 2 year and maximum tenure 6 years.
Customers also must understand the how the interest works on personal loan. Just say if the loan amount is RM5,000 to RM20,000 the interest rate will be 8% per annum fixed rate, loan amount RM20,001 to RM50,000 the interest rate will be 7% per annum fixed rate and a loan amount RM50,001 to RM100,000 the interest rate will be 6.5% per annum fixed rate. Basically, the larger amount you lend, the lower the interest rate.
In order for easy loan repayment methods, banks provide monthly repayment as low as RM102.78* per month (depending on the amount and banks).Not only that, there will be no documents stamping fee, waived processing fee and inclusive of personal care insurance protection for the applicant.
The best part about applying loan today is the fast approval period, compared too many years ago.
Conventional Loan & Islamic Loan
Currently Malaysians have two loan options to choose from which is the conventional loans and the Islamic loans. Islamic loans are benevolent loans that are interest / profit free. Secondly, contracts are technically not loans, but “Buy and Sell” or “Joint Partnership” agreements).
What is the basic qualification to apply for a loan?
To apply for a loan, there is a minimum criterion that we must comply:
- Individual Malaysian Citizen aged between 21 to 60 years old
- Minimum income of RM30,000 per annum
Here are the documents that we are required to provide for loan application,
If you are employed:
- Copy of NRIC (both sides)
- Latest BE form with official tax receipt
- Latest 3 months’ salary slips
- Latest 6 months’ savings account activity/current account statements
If you are self-employed:
- Copy of NRIC (both sides)
- Latest BE Form with official tax receipt
- Copies of Business Registration
- Latest 6 months’ Bank Statements
Customer also must take note of the fees & charges banks charge to ensure you understand why it’s imposed. Most personal loans application has no processing fees or stamping fees today.
We also must take note on the late payment charges which will be stated in the contract or please clarify with the banker how much the charges will be.Normally banks impose a 1%p.a on the amount in arrears, calculated from overdue date till date of full monthly payment.
For early settlement fees as well, there will be terms that we must check with the banker once your loan is approved. Best to clarify all the details so we can be prepared in managing the loans. For example some banks impose a RM200 or a sum equivalent to 3% of the outstanding balance of the loan whichever is higher, only is settled within first half of the tenure.