Are you planning to opt for a personal loan and finding it difficult to get a competitive rate since you are a private sector employee? Because, it is often seen that banks tends to charge higher rates of interest offered to private sector employees. But, don’t worry! There are many personal loans scheme available in the Malaysian financial market to help you receive personal finance. What you have to do is shop around and find the best scheme suitable for you.
Now, what is a personal loan?
A personal loan can save you during times of financial crisis. The amount received as personal loan can be used for accomplishing a variety of tasks such as renovating your house, funding your children’s education, paying medical bills etc. A personal loan is an unsecured debt that usually charges higher rates of interest compared to other secured debts.
Benefits of personal loan for private employees
Personal loans come with a number of benefits which include:
- Provides you instant cash and protects you against financial emergencies.
- The cash received as personal loan can be sued for fulfilling a variety of personal tasks. It is a kind of all-purpose loan.
- Hassle Free loan application process.
- Fast approval and quick disbursal.
- Flexible loan repayment tenure.
Key features of personal loan for private employees
Listed below are the key features of personal loan for private sector employees:
- No guarantor/collaterals required.
- Many banks don’t to ask for loan processing fees.
- Get personal loans up longer tenures like 10 years.
How to choose the best personal loan scheme for private employees
In order to choose the best personal loan available for private employees, you need to shop around and do a primary market research. By shopping around you can compare various available in the market and choose the best card suitable for you that suits your requirement. Also, it’s important you calculate your personal loan interest rate, before you finalize a deal. You can use a personal loan interest calculator to interest rates and monthly loan repayments. This helps you know how much you can afford to borrow within your budget.
Don’t borrow beyond your repayment capacity. Because, it is you who will have to pay off the interest amount on your principal amount along with the principal amount. So, borrow a mount which you can afford to pay back without facing any problem.
Personal loan for private employee’s eligibility
The eligibility conditions for private employees include:
- Should be working with a private organization
- Minimum age should be 18 years.
- Maximum age should not be more than 60 years.
- The applicant should be a Malaysian citizen.
- A minimum annual income of RM12000 is required. It varies from bank to bank.
Interest Rate of Personal loan for private employee’s
The interest rates charged on personal loans vary from banks to banks. In Malaysia, personal loan interest rates usually ranges between 3.4% to 24% based on your loan tenure loan mount. These rates are applicable on personal loan in general which can be availed by both government s well as private sector employees as well. However, there are certain schemes such as Public Bank BAE Personal Financing-i and Bank Rakyat Personal Financing-i Private which are particularly designed for private sector employees. Theses schemes come with interest rates like 4.99% and 6.16% respectively. The above-mentioned personal interest rates are subject to change from time to time.
Document required for applying for a personal loan:
A private sector employee needs to submit the following documents:
- Copy of Identity Card
- Employee confirmation letter.
- Latest months’ salary statement.
- Latest Employee Provident Fund Statement.
- Statement of Income Tax.
Do I need to pay penalty, if I fail to repay my loan on time?
Yes, bank will charge you penalty if you fail to repay your monthly installments on time. You may need to pay 1% of your current outstanding amount on as late payment penalty.