Cash woes? A personal loan to the rescue!
  • 5 Best Personal Loans in Malaysia With Zero Processing Fees

    When it comes to the application process for any personal loan, banks charge a processing fee that can pretty much eat into a big part of your approved financing amount. However, it isn’t a given that every bank charges a processing fee for personal loan.

     Best Personal Loans with Zero Processing Fees

    In fact, there are plenty of banks in Malaysia that offer personal loans with zero processing fees. Here’s a list of the best personal loans in Malaysia that don’t charge a processing fee:

    Name of the Loan Financing Limit Maximum Tenure Best Rate (Flat Rate) Applicable Processing Fee
    Citi Personal Loan RM150,000 5 years 5.88% p.a. Zero
    Maybank Personal Loan RM100,000 6 years 6.5% p.a.
    Maybank Islamic Personal Financing-i RM100,000 6 years 6.5% p.a.
    Standard Chartered CashOne Personal Loan RM250,000 7 years 6.99% p.a.
    Alliance CashFirst Personal Loan RM150,000 7 years 8.38% p.a.

    Citi Personal Loan

    The Citi Personal Loan lets you fulfil your personal financing needs by providing a loan of up to 10x your gross monthly income. You can even get an instant, in-principle approval of your online loan application if all your documents are in order and you satisfy the eligibility criteria.

    Key Benefits

    • Borrow a minimum of RM5,000 or up to RM150,000.
    • Low flat interest rates starting from 5.88% p.a.
    • Flexible loan repayment tenures that start from 24 months and can go up to 60 months.
    • Hassle-free loan application process that doesn't involve a guarantor or collateral.
    • Zero processing fees.

    Keep in Mind

    • You should be at least 21 years of age.
    • The minimum monthly net income requirement is RM4,000.
    • The loan isn't available for foreign applicants.
    • There’s a late payment fee of 1% p.a. on overdue instalments.
    • The early settlement fee is the higher amount between RM200 and 3% of the outstanding balance if you settle the loan in the first two years or before completing half the repayment tenure, whichever is earlier.
    • New-to-bank customers are eligible to apply for a maximum loan amount of RM120,000.
    • Self-employed professionals should have a business that's been established for at least 2 years.

    Maybank Personal Loan

    While it’s all well and good to get financing when you need it, what about the time something unthinkable happens to you and your dependents are left to deal with the repayments? The Maybank Personal Loan helps you avoid this situation with Personal Care Insurance Protection.

    This insurance plan covers the outstanding loan amount in case of your death or total permanent disability during the financing term.

    Key Benefits

    • Borrow as little as RM5,000 or as much as RM100,000.
    • Flexible tenure options ranging from 2 years to 6 years.
    • The monthly repayment amount starts from RM102.78.
    • The financing amount gets insured automatically after loan approval.
    • No guarantor or collateral is required.
    • Zero document stamping and processing fees.

    Keep in Mind

    • You should be at least 21 years of age.
    • The minimum annual net income requirement is RM30,000.
    • For loan amounts between RM50,001 and RM100,000, the flat interest rate is 6.5% p.a.
    • For loan amounts between RM5,000 and RM20,000, the flat interest rate is 8% p.a.
    • For loan amounts between RM20,001 and RM50,000, the flat interest rate is 7% p.a.
    • The loan isn't available for foreigners or expatriates.
    • The early settlement fee is the higher amount between RM200 and 3% of the outstanding loan amount. This fee is only applicable in case the loan is settled in the first half of the financing tenure.
    • The late payment fee amounts to 1% p.a. on outstanding arrears.

    Maybank Islamic Personal Financing-i

    The Maybank Islamic Personal Financing-I facility works much the same way as its conventional counterpart – the Maybank Personal Loan. What makes it different is that it’s Shariah-compliant and follows the concept of Commodity Murabahah.

    According to this concept, Maybank Islamic will be your non-exclusive agent when it comes to undertaking the required Commodity Murabahah transactions related to this financing facility.

    Key Benefits

    • The minimum financing amount is RM5,000 while the maximum amount is RM100,000.
    • Flexible repayment periods starting from 2 years and going up to 6 years.
    • The repayment amount can go as low as RM102.78 per month.
    • Complimentary Personal Care Takaful Protection that kicks in automatically soon after the loan gets approved.
    • No guarantor or collateral is required.
    • No processing, early settlement, or document stamping fees.

    Keep in Mind

    • You should be at least 21 years of age.
    • The minimum income requirement for this Islamic financing facility is RM30,000 p.a.
    • Flat interest rate of 6.5% p.a. is for financing amounts between RM50,001 and RM100,000.
    • Flat interest rate of 8% p.a. is for financing amounts between RM5,000 and RM20,000.
    • Flat interest rate of 7% p.a. is for financing amounts between RM20,001 and RM50,000.
    • Foreigners or expatriates can’t apply for this financing facility.
    • The late payment fee is calculated from the overdue date until the date of full monthly payment. It amounts to 1% p.a. on outstanding arrears.

    Standard Chartered CashOne Personal Loan

    The Standard Chartered CashOne Personal Loan facility is the only option on this list that works in tandem with a Standard Chartered credit card. The principal amount you pay every month for this loan will be converted into a spending limit on this card.

    Key Benefits

    • Get a Standard Chartered Visa Platinum Credit Card whose annual fee is waived for life.
    • With each monthly loan repayment, the paid principal amount will be converted into a credit limit for you to spend on this credit card.
    • Enjoy low flat interest rates starting from 0.583% per month.
    • Existing customers are eligible for flexible repayment tenures that go up to 84 months.
    • New-to-bank customers are eligible for repayment periods that go up to 60 months.
    • No processing, early settlement, or document stamping fees.

    Keep in Mind

    • The minimum age requirement for this loan is 21 years.
    • The minimum monthly income requirement for this loan is RM3,000.
    • 0.583% per month/6.99% p.a. is the flat rate. Flat rate is provided only for your ease of comparison. Your monthly Standard Chartered CashOne instalment is a fixed sum. However, the bank determines the proportion of the instalment which relates to the payment of the principal amount and the interest amount for each instalment using monthly rest and reducing balance method. The bank does this by calculating the amount of interest payable each month using the effective interest rate on the outstanding principal amount. Financing rate offered may differ depending on eligibility. Other terms and conditions apply.
    • You can choose to settle the loan amount before the term matures. You must give the Bank at least one month’s written notice in advance of your intention to settle the facility. Upon receiving your notification, the Bank will calculate and notify you the early settlement amount payable and the latest date of payment for the amount. The early settlement amount must include all accrued but unpaid interest, fees and charges in connection to the Facility.
    • Eligibility for self-employed professionals is subject to 100% site visit verification.
    • Foreigners or expatriates can’t apply for this loan.
    • The late payment fee is calculated on daily rest basis and amounts to 1% p.a. on outstanding arrears.

    Alliance CashFirst Personal Loan

    The Alliance CashFirst Personal Loan can be your go-to financing option whether you need money for your business or for personal use. A high financing limit and long repayment duration only add to its overall appeal.

    Key Benefits

    • Flexible loan tenure options starting from 12 months and going up to 7 years.
    • Borrow a minimum loan amount of RM5000 or a maximum amount of RM150,000.
    • There’s no need for a guarantor or collateral.
    • Low interest for monthly repayments starting from 8.38% p.a.
    • Facility for easy repayment through allianceonline.

    Keep in Mind

    • You should be at least 21 years old to apply for this loan.
    • You should earn a minimum annual income of RM36,000 to apply for this loan.
    • There’s a late payment fee of 1% p.a. on outstanding arrears.
    • Stamp duty of 0.5% on the total approved loan amount.

    With processing fees taking a sizeable chunk of your loan amount, it does make sense to apply for loans that have zero processing fees. If you’re wondering about your options when it comes to such loans, this list of personal loan options will surely help you get the right offer.

    FAQs

    Q. Do personal loans have prepayment penalties?

    A. Yes. Most banks include an early settlement penalty if you choose to settle your loan way before the set tenure. You may be charged up to RM200 or 3% of the outstanding balance as the early settlement fee.

    Q. What to know before choosing a personal loan?

    A. There are several factors you must consider before choosing a personal loan. The major ones among them are:

    • Loan amount you are eligible for
    • Loan tenure
    • Interest rate applicable
    • Documents required
    • Bank/financial institution
    • Approval period
    • Requirement of collateral/guarantor
    • Repayment affordability
    • Fees and charges

    Q. Why banks charge a personal loan processing fee?

    A. Banks charge a processing fee in order to cover the cost of processing your loan request. Such charges vary from one bank to another amounting to a very small percentage of the actual loan amount, i.e. 1%-2% of the loan amount approved. However, some banks do not charge a processing fee.

    Q. Can I get a refund of the processing charge I paid if my loan application is rejected?

    A. No. Processing fees are usually non-refundable. You will not receive a refund no matter if your loan application is approved or rejected.

    Q. When should you prefer credit from banks with no processing fee?

    A. A bank with no processing fee is preferred when you need a specific amount at hand. Consider a situation where you need RM20,000. If you apply for a loan amount of RM20,000 and 2% processing fee is applicable. Then, you will receive RM19,600 after debiting the processing fee of RM400 from the loan amount. In this case, you will have to apply for a loan of RM20,408 to get RM20,000 in hand.

    In the case of a zero processing fee loan, you can apply for a loan amount of exactly how much you need. A processing fee will not be deducted from the amount you receive in hand.

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