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

    Personal loans are generally given to individuals from 21 to 60 years. But what if you are a pensioner? There could be instances when you need to arrange some funds urgently. You don’t have to worry as there are a few banks in Malaysia that provide personal loans for pensioners. The following are some of the best loans for pensioners that come with flexible repayment tenures and attractive interest/profit rates.

    List of Banks in Malaysia that offer Pensioners Personal Loan

    Bank Muamalat Pembiayaan Peribadi Pesara (3P) Personal Financing-i

    Bank Muamalat Pembiayaan Peribadi Pesara (3P) Personal Financing-i is a Shariah-based financing scheme based on the concept of Tawarruq. It is offered to Malaysian pensioners to settle their debt and for investment purposes.

    Features and Benefits

    • The personal financing loan tenure is from 3 years to 10 years.
    • The applicant can apply for financing amount starting from RM5,000 to RM150,000 per month.
    • The funds can be obtained via the financial package that comes with fixed and floating profit rates.
    • Wasiat or will writing is optional, but highly recommended.
    • Takaful is optional.
    • No guarantor or collaterals are required.
    • The pension is credited with Bank Muamalat and paid by JHEV for armed forces.
    • The pension credited with Bank Muamalat under Scheme A and paid by JPA.

    Eligibility

    • The applicant must be a Malaysia Armed Forces Pensioner or a staff member of federal or state government/GLC and selected organizations.
    • All government-employed applicants must be confirmed employees.
    • All non-government-employed applicants must be permanent and confirmed staff with minimum 3 years in service.
    • The repayment capacity is determined by NDI and DSR.

    Fees and Charges

    Type of Fee Fee Details
    Late Payment Fee 1% p.a. on the overdue instalment amount.
    Stamp Duty As per the Stamp Duty Act 1949 (revised 1989).
    Ibra Based on the profit of the unutilized amount.
    Wasiat or Will Writing As per the bank.

    Profit Rate

    Tenure Flat Profit Rate Floating Profit Rate
    3 to 10 years 5.50% p.a. (Base Financing Rate + spread)% p.a., capped at 11% p.a.

    Documents Required

    • 1 photocopy of NRIC (both sides).
    • 1 photocopy of pension card.
    • Pension ledger/statement.
    • Bank Muamalat saving passbook.

    Bank Rakyat Personal Financing-i

    Bank Rakyat Personal Financing-i is yet another Shariah-compliant financing scheme based on the concept of Tawarruq. This facility is designed for pensions so that they can meet all their financial requirements at ease.

    Features and Benefits

    • The personal financing loan tenure is up to 10 years.
    • The applicant can apply for financing amount up to RM100,000 or maximum 15 times the monthly gross pension.
    • Both fixed and floating profit rates are available.
    • No guarantor or collateral is required. However, you must present a guarantor if the bank requests you to.
    • Takaful coverage is optional.

    Eligibility

    • The applicant must be a government pensioner.
    • The applicant must not be older than 65 years during the end of the financing period.
    • The minimum monthly pension of the applicant must be at least RM800.

    Fees and Charges

    Type of Fee Fee Details
    Late Payment Fee 1% p.a. on the overdue instalment amount.
    Wakalah or Agency Fee RM28.30 inclusive of brokerage fee.
    Stamp Duty 0.5% of total financing (as per the Stamp Duty Act 1949 (revised 1989)).
    Ibra The total balance deferred profits divided by the profit not accrued.

    Profit Rate

    Tenure Flat Profit Rate Floating Profit Rate
    1 to 10 years Base Financing Rate + 4.26% p.a. 8.36% /4.79% p.a.
    • The current Base Financing Rate of Bank Rakyat is 4.10% p.a.
    • An additional profit rate of 1.5% will be applicable over the current profit rate for financing without takaful.

    Documents Required

    For Jabatan Perkhidmatan Awam (JPA):

    • 1 copy of MyKad.
    • Malaysia government pensioner card.
    • Pension statement.

    For Jabatan Hal Ehwal Veteren (JHEV):

    • 1 copy of MyKad.
    • Army pensioner card.
    • Ledger pensioner.

    RHB Pensioner Personal Loan

    When you apply for RHB Pensioner Personal Financing-i, you get access to funds to alter to all your short-term financial requirements. This Shariah-compliant financing scheme is based on the concept of Commodity Murabahah via Tawarruq arrangement.

    Features and Benefits

    • The personal financing tenure is up to 10 years.
    • The applicant can apply for financing amount up to RM100,000.
    • No guarantor or collateral is required.
    • Takaful coverage is compulsory for this loan facility.
    • No early settlement fee will be charged if the loan amount is paid before it matures.

    Eligibility

    • The applicant must be a government pensioner (army service, other government ministries, departments or agencies.
    • The minimum age requirement for this loan scheme is 40 years.
    • The applicant must earn a minimum of RM750 as gross pension payment.
    • The applicant must be a Malaysian.

    Fees and Charges

    Type of Fee Fee Details
    Late Payment Fee 1% p.a. on the amount in arrears.
    Stamp Duty 0.5% of total financing (as per the Stamp Duty Act 1949 (revised 1989)).
    Brokerage Fee RM30 per application.
    Takaful Depends on the financing amount, age of the pensioner, and financing tenure.

    Profit Rate

    Tenure Flat Profit Rate Floating Profit Rate
    Up to 10 years 5.25% p.a. -

    Documents Required

    • 2 photocopies of MyKad (both sides).
    • 2 copies of Kad Pesara Kerajaan Malaysia/Kad Pesara Tentera.
    • 1 copy of Penyata Pencen (JPA)/Lejar Pesara (JHEV).
    • 1 photocopy of RHBIB savings account passbook/statement (compulsory for new customer).
    • 1 redemption statement of other banks/financial lenders (must be an original).

    How to Apply for a Pensioners Personal Loan?

    There are two ways to apply for a pensioner loan:

    Online application

    • Go to the bank’s official website.
    • Under ‘Personal Loans’, select the scheme of your choice.
    • Download, print, and fill in the form.
    • Submit the form along with the mandatory documents to the nearest branch.
    • If you are unable to submit the form at the branch, check if they have other ways to submit the form (fax, email, etc.).

    Offline application

    • Walk into any of the bank’s branches.
    • Express your interest to apply for the loan/financing.
    • Fill in the application form provided by the bank.
    • Submit the filled form along with the mandatory documents required.

    Conclusion

    Whether you need money for medical purposes or to renovate your home, as a pensioner, you can also apply for a personal loan. Not only do they come with attractive interest/profit rates, but loan approval is also quick and hassle-free. You can compare the available bank loans for pensioners and choose the one that suits your preferences the best. Also, take a look at some of the personal loans available for civil servants.

    FAQs

    Q. What is the benefit of taking takaful coverage?

    A. When you take takaful coverage, you are covered if the unexpected happens to you. The bank will repay your loan amount in case of death or total and permanent disability. Takaful is not compulsory for pensioners loans, but it is highly recommended as it protects your family members from financial burden.

    Q. Do you need to submit a security deposit when you opt for an unsecured loan for pensioners?

    A. This will depend on the type of financing scheme you are opting for. You may or may not be asked to submit a security deposit for a pensioners’ loan.

    Q. Do pensioners’ personal loans come with early settlement option?

    A. If you are able to arrange funds before the loan matures, you can repay the bank the loan amount. However, some banks could charge an early settlement fee on the outstanding amount.

    Q. Is the Base Financing Rate same for all banks?

    A. No. the Base Financing Rate differs from bank to bank. The rate could change with changes in the economy or due to market fluctuations.

    Q. What is the maximum financing amount I can apply for?

    A. The maximum financing amount will vary from one scheme to another. For Bank Rakyat Personal Financing-i and RHB Pensioner Personal Loan, the maximum loan amount you can get is RM100,000. If you need more financing, you can opt for Bank Muamalat Pembiayaan Peribadi Pesara (3P) Personal Financing-i. You can get up to RM150,000 under this facility.

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