Cash woes? A personal loan to the rescue!
  • Personal Loan for Foreigners

    If you are an expat residing and working in Malaysia, it is possible for you to get a personal loan. Not all banks in Malaysia offer personal loans for expats due to the risk associated with lending money to someone with no local ties. But certain Malaysian banks do offer personal loan schemes for expats.

    How does it work?

    The application process when you apply for a loan will be similar to the usual process. The eligibility criteria would mostly be the same. The required documents would be little different for an expat when compared to a Malaysian citizen.

    You would have to produce a current or valid work permit to apply for a personal loan. You also need to be employed full-time. You also may have to present a guarantor to co-sign for your loan.

    The processing time may depend on the bank as per its terms and conditions. Some may disburse the loan within a day or so and some may take a week or two. The interest rate would depend on the personal loan scheme as not all loan schemes are available for foreigners.

    Required documents to apply for Personal Loan

    Some documents required by banks are:

    • Copy of valid passport
    • Copy of current and valid work permit
    • Bank statement (6 months)
    • Payslip (3 months)
    • Malaysian employment contract letter (if required)
    • Income tax returns (if required)

    This list is not exhaustive. Each bank may have different terms set on required documents. You may be required to any additional documentation the bank may require.

    What can you do to get a personal loan easily?

    • You can start by opening a bank account in Malaysia. It could be either a savings or a current account. This will help you to develop a working relationship with the bank. If your bank account reflects a good financial routine, it may be easier for you to get a personal loan from that bank in the future.
    • Try and talk to a bank representative to better explain your situation This can be done either by visiting the branch in person or by contacting the bank through their customer care numbers. Some banks offer an online application process wherein a bank representative will reach out to you when you fill in the application form and leave your contact details.
    • You can open a fixed deposit account with the bank from whom you want to borrow a loan. This could help you to get a loan later as the bank would have access to your fixed deposit which can serve as collateral for a loan.
    • It would be better if you could show additional sources of income. Also make sure to disclose all additional income sources when paying and filing your taxes. Include your tax returns in your loan application. Do remember that you need have full time job in order for the bank to even consider your application.
    • Do not apply for a higher loan amount and instead, opt for a lower amount. Lower amounts are not only easier to repay, they are also easier to approve since your repayment capacity for such loans would be high.
    • While applying for a personal loan with a guarantor, ensure that the guarantor that you are going to present to the bank is a reliable person with a good credit history. You can also get someone who is in good standing with the bank to introduce you, and give you a reference letter.   
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