Each bank offers personal loans at different interest rates in Malaysia. Some of these banks may provide high interest rates while the others may provide cheapest interest rates. Based on the loan amount you need, the loan tenure can be defined.
The personal loan interest rates in Malaysia have been revised in 2018.
Let us take a look at the current interest rates of a few banks:
compare personal loan interest rates Malaysia
|Personal Loan||Interest Rate (% p.a.)|
|Bank Rakyat Personal Loan Financing-i Public Sector||4.54|
|Bank Islam Personal Financing-i Package||4.99|
|Bank Islam Personal Financing-i Non-Package||6|
|CIMB Cash Plus Personal Loan||8.20|
|Maybank Personal Loan||6.5|
|RHB Personal Financing||8.18|
|Hong Leong Bank Personal Loan||9|
|MBSB Bank Mumtaz-i||3.66|
What is an Interest Rate?
Interest Rate is a fraction of the principal loan amount that has to be paid by the loan borrower, in addition to repaying the loan amount borrowed. Usually, interest rates are calculated in terms of percentage per year.
Factors that Affect Your Personal Loan Interest Rate
There are many factors that affect your personal loan interest rate:
Higher annual incomes not only allow you to borrow more but can also result in lowered interest rates as it improves your capacity to repay the loan.
- Loan Tenure:
For a longer loan tenure, the interest rate offered is higher as compared to a shorter loan tenure of 3 years or less. In order to pay minimum interest rate, you may choose a short tenure. However,make sure that you can pay the bigger slice of instalment.
Loan amount is the principal amount you need to borrow from the bank. The higher the loan amount, the lower is the interest rate.
A good credit score is essential to get easy approval on your personal loan. The good credit score will also fetch you a good interest rate. If your score is not acceptable, a few banks still grant you the loan but at a higher interest rate r would require a guarantor or some form of collateral.
Mode of Payment:
Some banks have set different percentage of interest rates based on the mode by which you plan to pay the monthly instalments. If you choose to have the instalment deducted from your salary, then you can get the loan at lower rates. With certain loans, if you choose to pay the instalments through the transfer of money electronically, the rates offered are higher.
Type of Employment:
Salaried individuals get a different rate of interest as compared to self-employed or commissioned individuals since they have a steady flow of income.
Relationship with the Bank:
If you a have had a good history with the bank or have maintained a healthy total relationship balance with the bank, then the chances of you getting a lower interest rate on your personal loan is higher. This is because the bank owns a record of your financial behaviour with them. However, this may not be the case with a new customer.
How to Get Low Rates of Interest on Personal Loan?
You can go with the following methods to get minimum interest rates on your personal loan:
- Credit Score: The essential factor to get a low interest personal loan is a good credit score. A good score implies a good repayment behaviour and instils faith in lenders.
- Collateral: You can provide a collateral to secure a personal loan. In case, if you fail to pay the loan back, the bank reserves all rights to liquidate or repossess the collateral provided and recover the loan amount.
- Guarantor: You can provide a person with a good credit score as a guarantor to your loan. In this case, you may get your loan with a lower percentage of interest. If you do not repay the loan, the guarantor will be held responsible to repay the loan.
Personal Loan Interest Rates in various banks
Bank Rakyat Personal Financing-i Public Sector:
Bank Rakyat restricts this personal loan for the public sector employees. The fixed interest rate is specified based on the payment type you choose and the repayment tenure. Here is a brief on the interest rates:
|Type of Payment||Loan Tenure||Interest Rate|
|Salary Transfer/ Salary Deduction/ Biro Perkhidmatan Angkasa||3 years or less||4.54% p.a.|
|3 to 10 years||4.99% p.a.|
|Electronic Payment||3 years or less||5.64% p.a.|
|3 to 10 years||6.26% p.a.|
Bank Islam Personal Financing-i:
The bank offers two types of personal financing—Package and Non-Package. Under Package, the fixed profit rate for one to 10 years of repayment period is 4.99% p.a. You can get the loan at this rate only when you choose Takaful Coverage with the loan. If you do not take up Takaful Coverage, then the fixed profit rate is 5.99% p.a.
Under Non-Package, you can borrow the personal loan at the rates given below:
|Loan Tenure||Profit Rates with Takaful Coverage||Profit Rates without Takaful Coverage|
|1 year to 3 years||6% p.a.||7% p.a.|
|4 years to 8 years||6.8% p.a.||7.8% p.a.|
|9 years to 10 years||7% p.a.||8% p.a.|
CIMB Cash Plus Personal Loan:
The profit rates offered by CIMB Cash Plus Personal Loan varies with the loan amount borrowed. Also, the type your employment affects the profit rates.
|Type of Employment||Loan Amount||Fixed Rate of Profit (% p.a.)|
Maybank Personal Loan:
The bank offers different interest rates for different loan amounts as given in the table below:
|Loan Amount||Fixed Interest Rate (% p.a.)|
RHB Personal Financing:
The interest rates are competitive i.e., 8.18% p.a. for a higher loan amount on a 2-year term. In contrast, for a lower loan amount, the flat interest rate goes up to 15.33% p.a. over a period of 7.5 years. The bank has a pre-defined list of interest rates based on the loan amount and the tenure. The lowest interest rates available on each of the categories of loan amount are:
|Loan Amount||Flat Interest Rate||Repayment Tenure|
|RM2,000-RM10,000||13.38% p.a.||18 months|
|RM11,000-RM15,000||13.38% p.a.||18 months|
|RM16,000-RM50,000||11.63% p.a.||18 months|
|RM51,000-RM99,000||9.90% p.a.||18 months|
|RM100,000-RM150,000||8.18% p.a.||24 months|
BSN MyRinggit Personal Loan:
The flat rates of interest offered by BSN bank are based on your income and the mode of instalment payment:
|Package/Mode of Payment||Monthly Income||Flat Interest Rate (% p.a.)|
|Klasik||RM800 to RM5,000||4.75|
|RM5,000 and above||4.50|
|Super Klasik B||RM2,500 to RM5,000||4.75|
|RM5,000 and above||4.50|
|EKSEKUTIF-1||RM3,000 to RM5,000||8.50|
|RM5,000 to RM10,000||7|
|RM10,000 and above||6|
Different interest rates are applicable when you choose to deduct the monthly instalment from your salary and from non-salary funds.
AmBank MoneyLine Personal Loan:
The MoneyLine personal loan provides different interest rates for self-employed and salaried customers.
|Employment Type||Loan Amount||Flat Interest Rate (% p.a.)|
|Salaried Employee||RM2,000 to RM20,000||9.99|
|RM21,000 to RM50,000||8.50|
|RM51,000 to RM100,000||8|
|Self-Employed||RM2,000 to RM100,000||11.99|
Hong Leong Bank Personal Loan:
The flat rates offered by Hong Leong Bank varies between 9% p.a. to 13.5% p.a.
MBSB Bank Mumtaz-i Personal Loan:
The personal loan available for public servants or employees with the facility for salary deduction with the bank are offered a flat profit rate of 3.66% p.a. For public sector/predefined private and public listed company employees, the bank offers Afdhal-i personal loan at a fixed rate of 4.40% p.a. In case of self-employed individuals and employees of public listed companies and its subsidiaries, the flat rate of profit is 6.43% p.a.
Alliance Cashfirst Personal Loan:
Alliance Bank offers personal loans at a fixed interest rate of 8.38% p.a. when you borrow an amount of RM5,000 for a tenure of seven years.