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

    Looking for personal loans for government employees in Malaysia? Currently, there are approximately 1.6 million civil servants in the country and the demand for personal financing is quite high in that sector. Compared to general public, civil servants get more preference when it comes to loan approvals. Unlike loans for other individuals, the monthly loan amount is deducted from the salaries of civil servants automatically.

    There are many banks in Malaysia that offer personal loans for civil servants at low profit rates.

    List of Banks that offer Personal Loan for Government Employees

    The following banks offer Civil Servant/GLC Personal Loan in Malaysia:

    Name of Personal Loan Fixed interest Rate/Profit Rate Max. Loan Amount Min. monthly income Tenure More Info.
    MBSB Personal Financing Mumtaz-i From 3.34% p.a. RM250,000 RM3,000 Up to 10 years  
    RHB Personal Financing-i for Civil Sector From 4.50% p.a. RM200,000 RM2,000 10 years  
    Bank Rakyat Personal Financing-i Civil Servant From 4.54% p.a. RM200,000 RM1,000 Up to 10 years  
    MBSB Personal Financing Afdhal-i From 3.99% p.a. RM400,000 RM3,000 Up to 10 years  
    KFH Personal Financing-i Government Sector Personal Loan - RM250,000 RM3,000 From 2 to 10 years  
    AFFIN Islamic Personal Financing-i 5.50% p.a. RM150,000 RM1,500 From 2 to 10 years  

    Reasons why Civil Servants Take Personal Loans

    Though there can be plenty of reasons why civil servants take personal loans, the following are some of the most common reasons:

    • For medical reasons.
    • For home renovations and refurbishments.
    • To secure their children's education.

    Features and Benefits

    The following are the features and benefits of the personal loans for civil servants:

    • The financing tenure of most loans is 10 years.
    • Loans come with either fixed or floating profit rates.
    • For most loans, you don’t need a guarantor or a collateral.
    • Civil servants get financing at lower profit rates when compared to other individuals.
    • Takaful coverage is optional for most of the personal loans.
    • The eligibility for most government servant loans is 18 years and above.

    Fees and Charges

    Name of fee Charges
    Stamp duty fee As per the Stamp Duty Act 1949 (Revised 1989).
    Late payment fee 1% p.a. of the total outstanding amount.

    Some of the other fees and charges associated are brokerage fees, collection fee, wakalah or agency fee, processing fees, bankers cheque, delivery charges, and security document retrieval fee. These charges will differ from scheme to scheme.

    Eligibility Criteria

    • You should be a Malaysian citizen.
    • You must be a public sector employee or selected Government-Linked Company (GLC) employee.
    • The minimum age requirement is 18 years and the maximum age criteria is 60 years at the end of the financing tenure.
    • For most loans, the minimum fixed monthly income is usually RM1,000 inclusive of any fixed allowances.
    • For most loans, you should be in service for least three months.

    What Documents Do I need?

    You need to produce the following documents when you are applying for a personal loan for civil servants:

    • 1 copy of MyKad.
    • Salary slips for the last three consecutive months.
    • Last three months’ bank statements showing salary crediting information.
    • Letter from your employer confirming employment.

    How to Apply for a Personal Loan for Civil Servants?

    • Compare personal loans for Govt. employees.
    • Choose the one that suits your requirements the best.
    • Visit the bank’s nearest branch and express your interest to apply for the loan.
    • Download and fill in the online application form or contact form available on most bank websites. A representative of the bank will get in touch with you and help you with the application process.

    Most banks have specifically designed personal loans for civil servants. You can compare the available loan facilities with loans specifically offered to civil servants and apply accordingly.

    FAQs

    Q. Do I need takaful coverage when I apply for a personal loan?

    A. Though takaful coverage is not compulsory for all loans, you are advised to take takaful against death and total and permanent disability., the bank will take care of the remaining loan amount if the unexpected happens to you. It will also lessen the burden of your near and dear ones.

    Q. What if I have to change my address?

    A. If there are any changes to your address or any other contact details, you must notify the bank immediately. When your details are updated, the bank will be able to send you correspondence on time.

    Q. Will a change in the base rate affect my monthly instalment amount?

    A. When you apply for a fixed loan facility, any changes in the base rate will not affect your monthly instalment payment. However, if you apply for a floating loan facility, the monthly instalment payment will change according to the change in the base rate.

    Q. Are all personal loans for civil servants in Malaysia Shariah-compliant?

    A. Most of the loan facilities available are Shariah-compliant. However, you could find banks that offer conventional personal loans for government employees and civil servants.

    Q. What if I fully settle the loan prior to the agreed settlement period?

    A. If you settle the loan prior to the agreed settlement period, you will have to pay an early settlement fee. The fee will differ from one loan facility to another.

    News About Civil Servant Personal Loans

    • Rising Living Standards of Civil Servants

      Civil servants in Malaysia are enjoying a better living standards in recent times. Around 1.6 million civil servants are getting benefits from the annual salary increment and pay hike, and thus, enjoying a higher standard of living that before.

      There has also been a significant rise in the job security of these employees that is resulting into the banks and financial institutions are comfortable issuing loans to these individuals. It has also been noticed that the government is disbursing the salary of civil servants on time every month without fail.

      Civil servants are also expecting twice their annual salary increment this year with an additional increment on July 1. Datuk S. Gopinath, the president of Malaysian Indian Network of Entrepreneurs Association (1MINE), said that the Prime Minister, Datuk Seri Najib Tun Razak has done an excellent job in order to safeguard the interest of civil servants in Malaysia.

      BBazaar Malaysia

      02 May 2018

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