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    Compare Best Personal Loans in Malaysia

    Compare & get the best personal loan in Malaysia from multiple banks that is best suited for you. Check how much you can borrow and calculate interest rate, monthly loan repayments. We offer you an easy way to find, compare and learn more about personal loans.

    Bank Name Interest Rate Tenure Processing Fees Minimum Income Required Max Loan Amount

    Maybank

    Starting from 6.5% p.a. flat rate 2 to 6 years Nil RM30,000 p.a. RM100,000

    Bank Islam

    Starting from 6% p.a. flat rate and 7% p.a. for floating rate 1 to 10 years Nil RM3,500 per month RM150,000

    Ambank

    8% p.a. to 11.99% p.a. for fixed rate 14.13% to 20.30% for floating rate 1 to 5 years Nil RM2,000 per month RM100,000

    BSN

    Flat rate starting from 4.75% p.a. to 8.5% p.a. depending on the loan Floating rate starts from BR + 0.70% where BR is 3.95% p.a. 2 to 10 years Nil RM800 or RM2,500 or RM3,000 per month depending on the type of loan applied RM200,000

    RHB

    EIR of 15% p.a. to 24% p.a. 1 to 10 years Nil RM2,000 per month RM150,000

    AEON

    Starting from 0.8% per month to 1.50% per month 1 to 7 years 4% fee for loan amounts between RM1,000 to RM10,000 2% processing fee for loan amounts between RM10,100 to RM100,000 Minimum net income of RM800 RM100,000

    Bank Rakyat

    EIR starting from 9.22% p.a. to 11.37% p.a. 1 to 10 years Nil Minimum gross income of RM2,000 for permanent employees and minimum gross income of RM8,000 and above for contract employees RM150,000

    Hong Leong

    EIR starting from 12.38% to 24.82% p.a. 1 to 7 years Nil RM24,000 p.a. RM100,000

    MBSB

    Starting from ECOF-i -0.20% p.a. where ECOF-i is 6.75% 1 to 10 years Nil RM24,000 p.a. Up to RM400,000 depending on the type of loan acquired

    Public Bank

    Starting from 4.99% p.a. 1 to 10 years Nil RM1,500 per month RM150,000

    CIMB

    Starting from 14.5% p.a.to 24% p.a. for Cash Plus Personal Loan EIR of 28.88% to 41.70% p.a. for Xpress Cash Financing-i 1 to 5 years Nil RM2,000 per month RM800 per month for Xpress Cash Financing-i RM100,000 RM50,000 for Xpress Cash Financing-i

    UOB

    Interest rates start from 9.99% p.a. 1 to 5 years Nil RM24,000 p.a. for salaried applicants RM36,000 p.a. for self-employed applicants RM100,000

    Bank Muamalat

    Starting from 5.60% p.a. for fixed rate Floating rate is Base rate + Spread capped to 11% p.a. 1 to 10 years Nil Repayment capability determined by NDI & DSR RM150,000

    Alliance Bank

    Starting at 8.38% p.a. 1 to 7 years Nil RM3,000 per month RM150,000

    What is a personal loan?

    Personal loans are one of the most sought-after loans due to the convenience and benefits they provide and the ease with which one can apply for them. But what exactly are personal loans? Personal loans are unsecured loans offered by banks and financial institutions. These loans do not require any form of collateral or a guarantor to acquire and as such are an ideal option when in need of extra financing.

    Unlike specialised loans such as home loansrenovation loanscar loans etc. A personal loan can be used for any personal requirement a borrower may have. Be it consolidating credit card dues or buying a new appliance, the personal loan may be used in any way deemed fit by a borrower.

    Features of a Personal Loan

    • The loans are unsecured and do not require a guarantor or any form of collateral.
    • The loan comes with a minimum tenure of 1 year and maximum tenure going up to 10 years.
    • The loan can be acquired in both, Islamic and conventional banking formats.
    • Personal loans have a hassle-free process and offer quick disbursal times.
    • Personal loans can be acquired with either a fixed rate of interest or a floating rate of interest.
    • Loan amounts offered under personal loans are high and can range from a minimum of RM1,000 to a maximum of up to RM200,000.

    Benefits of a Personal Loan

    Personal loans have a myriad of benefits that make them an ideal choice when in need of additional funds. The below points describe the benefits of a personal loan and why they are the right choice:

    • Fast approval loanPersonal loans offer borrowers quick access to cash. When an emergency expense arises, it is easier to acquire the additional financing by applying for a personal loan rather than having to rely on family and friends. Some banks offer personal loans with faster approval times. The loan amount can be disbursed to the borrower within a span of 2 to 3 working days, making it an ideal choice during medical emergencies.
    • Lower interest rates: Interest rates charged by a personal loan are lower than most credit cards. Credit cards also come with the added constraint of a credit limit. If a borrower has already utilised a portion of their credit limit, it makes it harder to meet an unexpected expenses especially if the amount required exceeds the assigned credit limit. Personal loans offer a cheaper alternative that is also easier to repay thanks to their lowered rates of interest.
    • Hassle-free: A personal loan is easy to acquire and offers a higher degree of convenience and utility. The loans do not require any form of collateral or a guarantor. The loans also come with minimal paperwork as opposed to other specialised loans such as a home loan or education loan.
    • Flexibility in use: The personal loan can be used in any way deemed fit by the borrower and is not limited in its use to any one specific purpose. Thus the applications of a personal loan and its versatility make it an apt choice to meet a range of different expenses.
    • Fixed monthly payments: Personal loans also allow borrowers to repay the loan amount with ease through fixed monthly instalments. The fixed instalments allow borrowers to plan out their finances effectively and allow them to set aside the required amount to pay an instalment well in advance. It allows borrower to plan ahead and ensure they make payments even if any other expense crops up.
    • Consolidation: One of the more common uses of a personal loan, consolidating other forms of debt such as credit cards with the use of a personal loan will leave the borrower with only one payment to worry about.
    • Flexible tenures: Personal loans come with tenures ranging up to 10 years. This allows borrowers to settle on a tenure that fits in with their budget and repayment capability. Borrowers with a tight financial budget can go in for longer tenures which would lower the monthly instalment amount.
    • Credit score: If handled correctly, a borrower can boost their credit score when they apply for a personal loan and make prompt payments on the loan. Even utilising the loan amount to consolidate credit card dues can help improve credit score by bring down the total credit utilisation of the borrower.

    Eligibility Criteria for Personal Loans

    The eligibility criteria for personal loans are as follows:

    • Nationality: Most banks in Malaysia offer personal loans to Malaysian citizens and permanent residents only. There are a few banks that offer personal loans to foreign applicants as well.
    • Type of applicant: Unlike larger loans such as a home loan, a personal loan is available only to single applicants. The loan can only be acquired by one person who will be responsible for full repayment of the amount.
    • Age of the borrower: The minimum age of a borrower can range from 18 to 21 years and the maximum age of the borrower will depend on the tenure chosen. The maximum age of the borrower must not exceed 65 years by the end of the loan tenure.
    • Minimum income: Most loans require the borrower to earn at least RM2,000 on a monthly basis. This however depends on the bank. Certain banks require a minimum monthly income of RM3,000 or upwards.
    • Nature of employment: The borrower must have a source of income and can either be a salaried applicant or self-employed applicant. For salaried applicants, most loans require that they be in the service of the current employer for a minimum period of 6 consecutive months. Self-employed applicants are required to have been in business for at least a period of 24 months.

    Documents Required for Personal Loan Application

    The following documents are required at the time of applying for a personal loan:

    Salaried applicants:

    • A copy of the most recent computerised salary slip of the applicant
    • A copy of the most recent bank statement which can vary from 1 month to the past 3 months depending on the bank
    • A copy of the latest EPF contribution statement
    • A copy of the most recent EA Form or the most recent Form BE with tax receipt

    Variable salaried applicants:

    • A copy of the latest salary slips for the past 3 months
    • A copy of the latest bank statements ranging from the last 3 to 6 months
    • A copy of the latest EPF contribution statement
    • A copy of the most recent EA Form or the most recent Form BE with LHDN payment receipt

    Full commission earners:

    • A copy of the commission statement for the last 6 months
    • A copy of the bank statement showing the crediting of commission earned
    • A copy of the most recent Form B with LHDN payment receipt

    Self-employed applicants (Private Ltd, Sole proprietorship, Partnership):

    • A copy of the Business Registration Certificate
    • A copy of the latest 6 months’ company bank statement
    • A copy of the latest Form B with LHDN payment receipt

    How to calculate the personal loan monthly repayments?

    Any amount borrowed under a personal loan must be repaid through monthly instalments. Having a vague idea about these instalments prior to applying for a loan is not good enough. When undertaking large financial commitments, it is imperative to get as close to an informed guess as possible as to how much the instalment would amount to.

    In order to calculate the instalment amount and figure out if the desired loan amount can be repaid or not, we can make use of a personal loan calculator. These calculators give borrowers an idea of the payments they would be facing by calculating various parameters such as the loan amount, the tenure, the interest rate charged by the bank, and any additional charges imposed by a bank such as processing fees.

    Borrowers must enter the parameters and click on calculate in order to view their monthly instalments.

    How to Apply for a Personal Loan?

    One should apply for the loan only after carrying out thorough research and comparing personal loans offered by various banks. Once a borrower has decided on the personal loan of their choice, they can apply for it through the following ways:

    • Apply Personal Loan Online: Most banks offer an option of applying for a personal loan online. Borrowers can click on the apply option on the bank’s website and will be redirected to an application form which then has to be duly filled and submitted to the bank along with the required supporting documents.
    • Netbanking: When applying for a loan with a bank that a borrower is already a customer with, they can apply for the personal loan by logging on to their netbanking facility.
    • Leaving contact details with the bank: Many bank websites provide borrowers with the option of leaving their contact details with the bank. The bank will then have a representative reach out to the borrower within 1 or 2 working days and initiate the application process.
    • Offline: Borrowers can also choose to visit the nearest branch of the bank they wish to apply the loan from and request for an application.

    Types of personal loans in Malaysia

    Personal loans can be classified on the basis of the interest rate offered, whether the loan is conventional or Islamic and whether a collateral is required or not. The following are the main types of personal loans available in Malaysia:

    • Unsecured personal loansPersonal loans, by their very nature are unsecured loans and as such, this type of personal loan is the most common variant offered to almost anyone who applies for a loan and meets the eligibility criteria. Typically, a borrower can apply for a personal loan just as they would for a credit card. There is no need of putting up any assets or have a guarantor when applying for the loan.
    • Secured personal loans: There are personal loans available that require borrowers to put up collateral or have a guarantor. Such loans tend to offer lower interest rates since the risk is lower for the bank. Personal loans often require collateral when the borrower does not meet a certain income criteria. This might include a poor credit score, a low salary or a combination of both. In some cases, banks offer secured personal loans when the requested loan amount is higher than what the bank has on offer.
    • Islamic personal loans: These loans are basically the same as conventional loans but are based on the principles of Shariah. The loans work a little differently as compared to conventional personal loans. These loans work most commonly on the principle of Bai Al-Inah which basically involves a selling and buying back transaction by a bank using a deferred payment basis. As such, these loans are commonly referred to as personal financing rather than personal loans. Since Shariah laws prevent them from charging any interest rates, banks charge borrowers a profit rate for providing them with the personal financing facility.
    • Fixed interest rate personal loans: The main identifying feature of these personal loans is that the rate of interest charged remains fixed throughout the tenure of the loan. These loans come with the added advantage that regardless of how volatile the market conditions can get, borrowers will continue to make fixed repayments until the loan reaches maturity. The downside is that borrowers can only pay the required instalment amount. If they pay a larger instalment sum in order to clear the loan faster, they will face additional charges.
    • Variable interest rate personal loans: These loans are the opposite of a fixed rate of interest loan and as the name suggests, borrowers will be charged a rate of interest that depends on market rates. Any fluctuations in market rates, be it positive or negative, will directly affect their payments. If the market rates go up, the interest charged increases and hence the instalment amount will also increase. The advantage of such a loan is that if the market rates are low, then borrowers will enjoy lower rates of interest and will have lower instalments to pay.

    Points to consider before applying for a Personal Loan

    Here are a few points to consider before applying for a personal loan.

    • Have a good credit score: This goes without saying but having a good credit score can be the deciding factor in having a loan approved. Late payments on credit card bills and recently acquired lines of credit can hamper one’s score. Borrowers must check their credit score before putting in an application. If the score is in bad shape, further applications will only lower chances of approval. A borrower must ensure they continue making prompt payments on their other open lines of credit and apply for a loan when their score is in a better standing.
    • Income requirements: Borrowers should make sure they meet the required income criteria set forth by respective banks in order to have their loan applications successfully approved. The higher the applicant’s income, the easier it is to repay the loan.
    • Nature of employment: Many banks consider the nature of employment when reviewing a loan application. For self-employed borrowers, the business must be in operation for a prescribed number of years and should be profitable. For salaried applicants, the monthly salary along with the designation and number of years worked in a company can be a deciding factor. Those who constantly change jobs or have recently joined a company might find it harder to have their loan applications approved.
    • Repayment capability: Regardless of the loan amount borrowed, a borrower must first ensure that they have the capability of making the payment. Borrowers should ensure monthly payments are made on time and that they should go in for a loan only after taking into account their current financial limits.
    • Affordability: This includes the interest rates charged by the bank, the fees and charges of the loan, and other commitments of the borrower. If the borrower has other loans or instalments to pay, it reduces the amount of disposable income left to repay a new personal loan. Borrowers who have a high TDSR also have lower chances of new loan applications being approved.
    • Loan amount: One of the contributing factors of affordability, it is important for borrowers to not only settle on a loan amount that they can utilise correctly but also choose an amount that can be paid off as early as possible.
    • Interest rates: A cornerstone of affordability, the interest rates of a loan can decide how affordable a loan is. Personal loans with longer tenures are especially susceptible to higher interest rates. The lower the rates of interest, the more affordable a loan is.
    • Select the right tenure: Selecting the right tenure can not only help with the repayment capability but can also save the borrower a ton of money. Borrowers should aim to pay off their loan as soon as possible. Shorter tenures will result in higher instalments but the total interest paid will be much lower. On the other hand, borrowers who go in for longer tenures will face lower monthly instalments and while the lower amounts can easily be paid, the overall interest paid throughout the tenure will be much higher. Borrowers should take into consideration their financial constraints and other commitments and expenses and choose an appropriate tenure
    • Avoid multiple applications: When looking for a personal loan, borrowers must steer clear of making multiple applications across different banks. Doing so will send a message of being credit hungry but can hamper chances of successful application.
    • Do the research: When going in for a loan, borrowers should shop around. They must carry out research and take into account not just the interest rates charged but other fees and charges of a loan as well. These additional charges can change the affordability of a loan quite drastically especially when two or more loans offer similar rates of interest.

    Personal Loan FAQs

    Q. Does a personal loan require any form of collateral?

    A. No. A personal loan is an unsecured product and as such does not require the borrower to put down any form of collateral or have the loan co-signed by a guarantor. Some banks do however provide the borrower with the option of doing so in case the loan amount requested is much higher than the available amount offered by the bank.

    Q. Are there any restrictions on the use of a personal loan?

    A. No. Unlike home loans meant specifically for a home, car loans for purchasing a car and education loans meant for pursuing further studies, a personal loan does not require any specific purpose and can be used in any way deemed fit by a borrower. If the borrower meets all the requirements and credit checks set forth by a bank, they are free to use the loan amount anyway way they please, whether it is to consolidate credit card debt or whether it is for more frivolous pursuits.

    Q. What are the income requirements for a personal loan?

    A. Most personal loans come with an income requirement of RM2,000 per month or RM24,000 annually. The annual income requirements can change depending on the bank the applicant is borrowing from.

    Q. Can one apply for a personal loan when they do not meet the income requirements?

    A. The income requirements for a personal loan are a major factor in the success of approval of the loan application. These requirements are set forth by banks to ensure that a borrower can repay the loan amount. When a borrower does not meet the income requirements, they will either have their loan application rejected or based on how much they actually earn, will receive a loan with a lower loan amount and a higher interest rate.

    Q. Is there a limit to how much one can borrow?

    A. Yes. Depending on which bank is offering the personal loan, there are maximum and minimum loan amounts that one can borrow. These limits are based on a number of factors such as the salary of an applicant, the occupation, and other factors of their credit score such as repayment history and existing debt.

    Q. What factors decide the approval of a loan application?

    A. There are a myriad of factors that go into the approval or rejection of a loan application. Even with a very high salary, an applicant can stand to have their applications rejected solely based on the fact that they have a high number of existing debts or a poor payment record. Instances of late payments on credit cards can tarnish an applicant’s payment record. The credit utilisation of an applicant can also decide whether an application is approved or not.

    Even multiple applications for a personal loan or credit card can hamper chances of having the application approved as it sends out a message that the applicant is credit hungry and can result in the application being treated as a risk. Chances of approval are higher when borrowers apply for a loan from a bank where they are already a customer.

    Q. Upon successful approval, will a borrower receive the loan amount they requested?

    A. Not necessarily. When an application is approved, a bank has rated the borrower either as a high-risk or a low-risk candidate. The loan amount approved will be based off this rating. Assume an applicant who is an existing customer of a bank applies for a loan and has the application approved. If this applicant has maintained a good record of making payments on credit cards or other lines of credit, meets the income requirements, and has applied for and successfully repaid loans from the same bank numerous times in the past, then the chances of the requested loan amount being granted are quite high.

    On the other hand, if the same applicant applies for a loan from the bank but has an ongoing long-term loan such as a mortgage loan with the bank, then the applicant might only be granted 80% of the desired loan amount as opposed to 100%. Even though the applicant might meet income requirements and has a decent credit score and a good record of repayments, the bank would have deemed the applicant as slightly riskier since a portion of the applicant’s income will go towards servicing existing loans.

    And if the applicant is deemed as high risk then an even lower sum of say, 50% of the requested loan amount might be offered.

    Q. What is the maximum tenure of a personal loan?

    A. Personal loans have a limit of 10 years. However, many banks offer personal loans with tenures ranging from 1 year up to 7 to 8 years. As a good rule of practice, a borrower must aim to repay the loan amount as quickly as possible. This will not only allow them to get over the commitment or burden of debt but can also help them save a lot on interest charges.

    Longer tenures can result in lower monthly instalments but it also means that by the end of the tenure, the borrower would have ended paying a much higher amount due to the interest rate charged. Thus, it is important for a borrower to also take into consideration the affordability of a loan rather than just focus on their repayment capability

    Q. Can one apply for a personal loan if they have been blacklisted by the CCRIS?

    A. Chances of having loan applications approved are quite difficult. Depending on the nature of the blacklist, an application may or may not be approved. If the applicant was blacklisted for having defaulted on a loan a long time ago but has since made significant improvements on their score, the chances of having an application approved are slightly higher. But if the applicant has been blacklisted or filed for bankruptcy recently then it is highly unlikely that their application will be approved. Making multiple applications across different banks can further damage the chances of approval.

    Q. How long will it take for the loan amount to be disbursed?

    A. Disbursal times range from bank to bank. Approval of an application take anywhere between 2 to 5 working days and the loan amount will be disbursed within one working day from date of approval. There are loans that offer faster approval times as well.

    Q. How many personal loans can a borrower have?

    A. While there is no limit to the number of loans one can have, the chances of having new loan applications approved when a borrower already has an open personal loan are quite low. This is because until the loan has been fully repaid, the borrower’s debt servicing ratio will be quite high. Taking on a loan at such times might signal a bank that the borrower is credit hungry and is a high risk candidate.

    Latest News About Personal Loan

    • Hengyuan Secures RM1.7b from Three Major Banks

      Hengyuan Refining Company Berhad has secured RM1.7 billion (US$430 million) financing facilities from three major banks for scheduled upgrades and pending maintenance work for the refinery.

      The financing facilities include a term loan and a revolving credit line. While the former will be used to refinance the existing term loan of the company, the latter will be used to cater to the refinery’s working capital needs. Hengyuan has signed bilateral agreements with Ambank (Malaysia) Berhad., China Construction Bank (Malaysia) Berhad and Maybank International Labuan branch.

      Hengyuan chairman, Wang YouDe said that going forward, the company will continue its endeavour to analyse the aspects of the company’s operations in order to increase efficiencies and manage costs.

      BBazaar Malaysia

      24 January 2018

    • PTPTN sees increase in Loan Repayment Collections

      PTPTN or The National Higher Education Fund Corporation saw an increase in its loan repayment collections which stood at RM3.4 billion up to October of this year. The loan repayment collection for the same period in 2015 stood only at RM1.5 billion.

      Datuk Dr Mary Yap Kain Ching, the Deputy Minister of Higher Education has attributed the increase in loan repayments largely to the success of PTPTN’s #BolehBincang campaign.

      With loan repayments coming in, the Deputy Minister also said that 4,545 PTPTN borrowers which comprised of 2,733 Public Institution students and 1,812 Private Institution students, had obtained first class degrees and were exempt from paying back their loans.

      The minister also stated that the ministry has not only been promoting the welfare of students but also that of the lecturers by offering merit-based promotions and grants for high-impact research.

      BBazaar Malaysia

      13th December 2017

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