Unsecured personal loans mean that you need not present any guarantor or collateral to be eligible for these Unsecured loans. Many banks offers a variety of unsecured personal loans which have different interest rates, loan tenures and loan limits. Read further for more information on various unsecured personal loans and how to choose the right personal loan for your need and financial ability.
Best Unsecured Personal Loans from Top Banks
The below section highlights the best unsecured personal loans overall in Malaysia:
- Standard Chartered CashOne: The Standard Chartered CashOne Personal Loan is offered at an interest rate of 6.99% p.a. You can choose a loan amount of minimum RM1,000 up to maximum of RM150,000. This personal loan is offered for salaried or self-employed applicants.
- Bank Rakyat Personal Financing-i Private Sector: The Bank Rakyat Personal Financing-i Private Sector Loan is offered at an interest rate of 6.89% p.a. You can apply for an approved loan amount up to RM150,000. You can enjoy a flexible loan tenure that starts from 1 year up to 10 years. This personal loan is offered to full time staff of private organisations.
- Alliance Bank CashFirst Personal Loan: The Alliance Bank CashFirst Personal Loan is offered at an interest rate of 8.38% p.a. You can apply for a financing amount of minimum RM5,000 up to RM150,000. You can choose a loan tenure from anywhere between 1-7 years. This personal loan is offered to Malaysian citizens, and permanent residents working and living in Malaysia.
- HSBC Amanah Personal Financing-i: The HSBC Amanah Personal Financing-i Personal Loan is offered at an interest rate of 8.75% p.a. You can get an approved loan amount starting from minimum RM6,000 up to maximum RM150,000. The loan tenure for this personal loan starts from 2 years up to 7 years. This personal loan is offered to Malaysian citizens who work for the government, private organisations, and who are self-employed.
- Maybank Personal Loan: The Maybank Personal Loan is offered at an interest rate of 8.00% p.a. You can get financing from a minimum of RM 5,000 up to a maximum of RM150,000. You also get a flexible loan tenure that starts from minimum 2 years up to maximum 6 years. This personal loan is offered to all Malaysian citizens who work in government sector, private sectors, and who are self-employed.
Best Personal Loans For Excellent Credit
When you have an excellent credit score, you can easily get a personal loan as long as you meet the other requirements imposed by the bank. You will get personal loans approved with low interest rates which is a huge advantage for you. Read on for a list of best personal loans when you have an excellent credit score.
- Standard Chartered CashOne Personal Loan: This personal loan comes with a low interest rate of 6.99% p.a. You can apply for this loan if you are anywhere between 21-65 years old. You can get this personal loan approved within 7 business days if you are eligible.
- Bank Rakyat Personal Financing-i Private Sector: This personal loan has a low interest rate of 6.89% p.a. You can apply for this loan if you are aged between 21-60 years. You can easily get this loan approved within 5 business days if you are eligible.
- Maybank Personal Loan: This personal loan is offered at a low interest rate of 7.00% p.a. You can apply for this loan if you are aged between 21-60 years. If you are eligible, you can get this loan approved within 2 business days.
Best Personal Loans for Average Credit
Even if you maintain an average credit score, you can get personal loans approved easily. You need to meet the other requirements set by the bank. At times, you may find the interest rates a little higher when compared to the loans you may get with an excellent credit score. Below is a list of personal loans that are best suited when you have an average credit score.
- Alliance Bank CashFirst Personal Loan: This personal loan comes with a fixed interest rate that ranges from 4.99%-14.78% p.a. You can apply for this loan if you are aged between 21-60 years. If you meet the eligibility criteria, this loan can be approved within 48 hours.
- HSBC Amanah Personal Financing-i: This loan is offered at a fixed interest rate of 8.75% p.a. You need to have a minimum salary requirement of RM5,000 to be eligible for this loan. If you are eligible, this loan can be approved within 3 business days.
- UOB Personal Loan: This loan is offered at a fixed interest rate between 9.99% p.a. to 11.99% p.a. The age requirement for this loan is 21-55 years. You can choose a loan amount from a minimum of RM5,000 up to a maximum of RM100,000. If you are eligible, you can get this loan approved within 7 business days.
When to Opt For a Personal Loan?
Personal loans are an ideal way to get funds that you can use for a number of reasons. You may want to pay huge medical bills or may find yourself in middle of an urgent home renovation. You may need funds for education or to go on a vacation with your family and friends. If you own a small business, you may need funds at time to run and maintain your business. At such times personal loans allow you to use the approved funds according to your needs, preferences and convenience.
Unsecured Personal Loan vs Secured Personal Loan
Unsecured personal loans are loans where you have no need to provide a guarantor or collateral to the bank to approve the loan. Most personal loans offered in Malaysia are unsecured personal loans. As you do not provide any collateral or guarantor, unsecured personal loans may require you to pay a higher interest rates when compared to other loans. Banks in Malaysia are now offering unsecured personal loans at low interest rates with reasonable monthly instalments so that it is affordable for everyone.
Secured personal loans are loans where you have to provide a guarantor or collateral to be eligible for this loan. A guarantor must be someone with a stable financial ability as the guarantor becomes responsible to repay your loan if you are not able to repay for any reason. If you have to provide a collateral, then it must be in form of a car, house or land. The bank would possess or seize the collateral if you do not repay the loans. The bank may use the collateral as per its conditions and rules.
How to Pick the Best Unsecured Personal Loan?
It is easy to choose the best unsecured personal loan as per your budget, financial stability, need and preference. You need to know about your need, and the knowledge required to choose the best loan. You may consider some factors mentioned below to see which personal loan is ideal for you.
Reason for the Loan:
You need to consider why you require a personal loan in the first place. Some personal loans are granted for a specific purpose which may be designed according to that particular need. The payment amount, interest rates and loan tenure of such loans would be customised for that need. Check whether such loans are available which may fulfil your need.
Credit score plays an important role while applying for personal loans especially unsecured loans. Check whether you have a good credit score or not before you apply for a loan. If you have a low credit score, banks may offer personal loans with higher interest rates which may pose a burden on your finances. At times, banks may also refuse to grant you loans based on your credit score. Check for loans that are offered to those with low credit score, and see whether the terms and conditions of that loan can be borne by you.
You need to have a good credit score if you want to be eligible for unsecured personal loans. Since you do not provide a guarantor or collateral, you need to be a low risk customer for the bank to accept your loan application. If you have a good credit score, you can get personal loans at low interest rates. You may get additional benefits as well along with the loan. You can find out details of personal loans that are offered to those with good credit scores.
Terms & Conditions:
Another factor that you need to consider is the terms and conditions of the personal loan you are applying for. You need to check the loan tenure offered and the interest rates any personal loan that you are interested in. If you go for a longer loan tenure, you may have to pay low monthly instalments. If you opt for a shorter loan tenure, you need to be ready to pay high instalment amount each month.
Try to figure out as what would be the average monthly payment you can afford each month according to your finances, and how long would you be able to pay that amount? Based on that knowledge, you can compare and choose a personal loans that will suit your needs and preferences.
Applying For Loans:
After you have finished your research, compared and reached a decision about getting a personal loan, do not go ahead and fill multiple applications with several banks. Banks do look at your credit score, history and report as a part of the application process. If you apply multiple times, they can view you as someone desperate for funds which may not prove to be positive for you. It is always better to apply at 2-3 places and see how it goes before you proceed with further applications.
If you are finding it difficult to get a personal loan for a particular loan amount, then instead of applying for the lump sum you can apply for 2 personal loans instead. You can mention this in your application or to the bank representative.
How to Apply for the Best Unsecured Personal Loan?
Your research and planning would have helped you to decide on a particular personal loan is best suited for you. You can check the bank website or ask a bank representative for further information required to be eligible for the loan. You have to submit certain documents and fill up an application form. Keep all the required documents ready and fill up the application for with relevant information.
Some banks would allow you to apply online whereas some banks expect you to visit their branch to apply for a loan. You can get this information on the bank website. If you are required to visit the branch, carry all the relevant documentation with you while you do so. Once you have completed the application process, the bank representative would inform you of the time required to process the personal loan. For online applications, the bank would contact you to inform about the application process.