• Personal Loan Against Credit Card

    What is the Difference between Personal Loan and Personal Loan against Credit Card

    A personal loan on credit card, is simply a personal loan without the hassled of the usual documentation and application acceptance delays that may be pertaining to a personal loan. A personal loan on credit card is also different from cash withdrawal facility that all credit cards provide. In both cases, EMIs are applicable is required to be made. However, a credit card charges you a higher interest rate per annum through an EMI but a personal loan against the plastic card will have a lower rate of interest.

    Personal Loan Against Credit Card

    Features and Benefits of Personal Loan against Credit Card

    The following are the features and benefits of personal loan against credit cards:

    • There are lower requirements of documents to be presented for personal loan against a credit card when compared for a regular personal finance or loan.
    • The interest rates charged for personal loan against credit cards are lower than interest rates charged EMI payment with a credit card.
    • This option is also generally free of collaterals unlike personal loans where some personal loans can be applied for with collaterals.
    • The processing fees are also lower in this case when compared to the personal loan option.
    • If you are a salaried individual, a credit card personal loan is easier to avail against a traditional personal loan.
    • Personal loan against credit card has a higher interest rate of loan repayment as compared to personal loans.

    Personal Loan Vs Personal Loan Against Credit Card

    They are both higher valuable products but here are some of the factors which you need to prioritize when choosing among the two options:

    1. A credit card has a restricted limit of credit. So, your personal loan is restricted to the credit limit of your credit when it comes to borrowing through a personal finance product.
    2. It also has a higher rate of interest, when compared to a traditional personal loan.
    3. Personal finance against a credit card is easier to get, in terms of documentation as mentioned before.
    4. It also takes less time to process and has a lower rate for processing.
    5. You also get the flexible option of repaying the loaned amount every month and settling the loan completely, based on your financial at the moment.

    Eligibility for Personal Loans against Credit Card

    The eligibility criteria are dependent on the bank, but the following will give you the basic idea for eligibility:

    1. Your credit limit on the card should be able to suffice the personal loan repayment.
    2. You should be a Malaysian resident or an expat with a visa
    3. Age eligibility is dependent on the bank in terms of maximum age limit but in general the minimum age limit for applying for personal loans against credit loan is 18 years.
    4. There is also minimum income requirement based and depending on the bank.

    General Documentation Required For Personal Loan against Credit Cards

    This list is a general documentation requirement. However, a bank may ask for more documentation than another:

    Salaried Employee:

    • Latest EPF statement
    • Copy of NRIC (both sides)
    • Salary slips for the last 3 months prior to the date of application
    • Statement of the updated monthly bank savings account or passbook for the same.
    • Any one of the following:
      • Updated BE form and Tax payment receipt
      • Updated salary account showing salary credited


    • Business Registration Certificate (ROC and ROB)
    • Copy of NRIC (both sides)
    • Updated six months company or business principle current account statements.
    • Statement of the updated monthly bank savings account or passbook for the same.
    • Updated Form B form and Tax payment receipt
    Credit Cards
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