While obtaining a personal loan, you are required to meet the eligibility criteria set forth by the bank. Let’s have a look at some general eligibility criteria for obtaining a personal loan in the country.
Personal Loan Eligibility Criteria
You need to meet the following eligibility criteria when you apply for a personal loan:
- Nationality criterion:
As per the bank’s norms and the type of loan, you need to be a Malaysian citizen, or a permanent resident to acquire a loan facility. A foreign citizen or an expat can also apply for personal loan schemes offered by certain Malaysian banks by either providing valid set of documents or having a guarantor co-sign the loan.
- Age criteria:
In most of the cases, you need to be meet a minimum age of 21 years. The maximum age criteria may differ bank to bank with most banks setting the maximum age limit to around 55 to 60 years.
- Income criteria:
It differs based on the loan acquired. Your income plays a crucial role in deciding the loan amount that you will be offered by the bank. Most personal loans require you to have a minimum annual income between RM24,000 to RM36,000.
- Education criteria:
This is primarily applicable on the student/education loan schemes. You should have an acceptance letter from the university you intend to carry out your studies. You also need to ensure you have a guarantor when you don’t meet the age or minimum income criteria.
Personal Loan Eligibility According to Banks
Let’s have a look at what some of the top Malaysian banks are demanding when it comes to eligibility criteria for a personal loan.
Eligibility for personal loan in AEON Bank
If you want to get an AEON personal financing, you need to meet the following parameters:
- You have to be a Malaysian citizen.
- You need to be 18 years or older.
- Your minimum monthly income should be RM800.
Eligibility for personal loan in Alliance Bank
Eligibility criteria for Alliance Bank Personal Loan are as follows:
- Malaysians and Permanent Residents working and residing in Malaysia.
- Malaysians citizens working in Singapore, but residing in Malaysia.
- You have to be at least 21 years old and must not exceed 60 years of age at the end of the loan tenure.
- Your monthly income should be at least RM3,000 or RM36,000 p.a.
Eligibility for personal loan in Hong Leong Bank
The following are the eligibility criteria for Hong Leong Personal Loan:
- You need to be a Malaysian citizen aged between 21 and 60 years.
- The minimum annual income should be RM24,000 p.a.
Eligibility for personal loan in UOB Bank
- You minimum age must be 21 years.
- Your maximum age should not exceed 55 years.
- The minimum salary limit for salaried applicants is RM24,000 p.a.
- The minimum salary limit for self-employed applicants is RM36,000 p.a.
Eligibility for personal loan in Maybank Islamic Bank
- The facility is available for Malaysian citizens only.
- Minimum age needs to be 18 years whereas maximum age criteria is 65 years for ASB/ASB2 financing and 60 years for the personal loan financing-i.
- You must earn a minimum income of RM30,000 p.a. for the Maybank Personal Financing-i.
Factors Affecting Personal Loan Eligibility
- Credit score:
Having a healthy credit score is very important to get a personal loan. A credit score is determined by your banking habits and a bank carries out an assessment every time you apply for a loan facility. Thus, having a good record, and no outstanding or overdue loans is important while applying for a new loan facility.
- Income and employment status:
Your earning decides the approved loan amount. You can be a salaried employee or self-employed. But having a steady flow of income is highly important while applying for a personal loan. The bank will assess if you can pay off the loan amount within the given timeframe.
- Age criteria:
There are chances that your personal loan application might get rejected because you do not fit within the designated age limit. A young applicant will find it easy to get a personal loan while someone who is in his 50s might face difficulties while obtaining a loan as per tenure of his/her choice.
- Credit utilisation:
If you consistently seek out new sources of credit either by making loan applications or over-utilising your credit card, it gives of a signal to banks that you are credit hungry and it can affect your credit score negatively.
Personal Loan Eligibility for Foreigners
Though a personal loan is granted based on the criteria like age, and income, other factors may also be important if you are a foreign citizen and looking to obtain a personal loan in Malaysia. Let’s have a look at what other criteria are taken into consideration while giving a personal loan to a foreigner:
During the application process, being a foreigner or expat, you may need to submit additional documents such as:
- A valid passport
- Visa details
- Documents related to work permit
- Identity proof
- Income proof
- Residential proof
- The employer’s letter for validation
- Based on the bank’s discretion, a guarantor may also be required
Personal Loan Eligibility for Non-salaried Borrowers
As a non-salaried applicant, you need to follow the below given eligibility criteria:
Apart from the regular age related documents and identity proof, you need to submit the following documents to be eligible to get a personal loan:
- Copy of NRIC or MyKad (both sides)
- Latest BE Form with official tax receipt
- Copies of Business Registration certificate (if applicable)
- Latest bank statements for 6 months
- Company’s bank account details (if applicable)
- Any other document if asked by the bank
How to Increase Personal Loan Eligibility in Malaysia?
- Maintain a good credit score:
You can get a positive credit assessment by following a few tips. Do not have any impending loans while applying for a new one. Maintain a savings account of fixed deposit account with a bank where you are applying for the loan.
- Selection of a bank:
Choosing a bank you already have an existing relationship with will help in the processing of the application.
- Consider your age and income:
Maintain a regular income cycle, no matter what profession you are working in. Also, if you are young, you will have better chances to be eligible for a loan facility.
Q. Are personal loans offered to businesses?
A. Yes, personal loans can also be offered for various businesses that are in their initial stages. Brand-new businesses might find it difficult to get a business loan since they wouldn’t have the required number of years in operation and wouldn’t be able to meet the annual turnover or profit criteria set forth by such loans. In this scenario, a personal loan might come in handy to fulfil smaller requirements of capital.
Q. How to check personal loan eligibility online?
A. You can go to any bank’s official website and search for the criteria set forth for a personal loan. Most banks will display age and income criteria for a particular loan. if you meet the criteria, you can also make use of personal loan calculators that are also found on most bank websites. these calculators will estimate your monthly instalment based on the loan amount, tenure, and interest rate you enter.
Q. How banks calculate personal loan eligibility?
A. The bank calculates whether you are eligible to pay for the instalments or not by taking into account your income, your credit score, tenure chosen, and the loan amount you have requested.
Q. Can I be eligible for a personal loan if my monthly income is below RM1,000?
A. There are many banks in Malaysia that offer personal loans to a candidate with a lower income limit. You can check the banks’ official websites or contact their customer care department to have your queries answered.
Q. Can I get a personal loan if I am a blacklisted by CCRIS?
A. You can apply for a personal loan if you are blacklisted by the CCRIS (CEntral Credit Reference Information System). But Whether or not you will receive the loan depends on the bank’s policies. However, you should refrain from applying for the loan until such a time when your credit score is in a better condition.
Q. Can I get a personal loan for a small repairing work for my house? Or do I have to apply for a home loan to get the repair done?
A. You can apply for a personal loan for a small house repair related financing. Many Malaysian banks also offer house renovation loans that can be utilised in this scenario, but if your financial need is smaller, you can always opt for a short duration personal loan scheme.
Q. Am I eligible for a personal loan scheme in Malaysia if I am a self-employed individual in the country?
A. You can get a personal loan as a self-employed foreigner in the country. You just need to provide your Business Registration Certificate or License and income tax submission proofs along with other documents while applying for the loan.