Cash woes? A personal loan to the rescue!

Private Sector Personal Loan

As the name suggests, private sector loans are financing schemes offered to employees who work in the private sector. These loans come with attractive interest rates and are offered by some of the most prominent banks in Malaysia. Take a look at some of the loans/financing schemes offered to private sector employees.

Private Sector Personal Loan

Some Private Sector Personal Loans Available in Malaysia

Loan/Financing Offered By Interest Rate/Profit Rate Loan/Financing Amount Tenure
AmMoneyLine AmBank 8% p.a. (flat rate) RM2,000 to RM100,000 1 to 5 years
HSBC Amanah Personal Financing-i HSBC From 10.5% p.a. (flat rate) Up to RM150,000 Up to 7 years
CIMB Cash Plus Personal Loan CIMB Bank From 8.2% p.a. onwards (flat rate). RM2,000 to RM100,000 Up to 5 years
Citibank Personal Loan Citibank From 5.88% onwards RM5,000 to RM150,000 2 to 5 years
Maybank Personal Loan Maybank From 6.5% p.a. onwards RM5,000 to RM100,000 2 to 6 years
Alliance Cashfirst Personal Loan Alliance Bank From 3.99% p.a. onwards (flat rate) RM5,000 to RM150,000 From 1 to 7 years

Features and Benefits

  • The financing amount starts from as low as RM2,000 and can go up to RM300,000, depending on your monthly salary.
  • The loan/financing tenure can go up to 10 years.
  • Most banks offer loans that don't require a guarantor or a collateral.
  • While it is compulsory for some banks to make takaful/insurance coverage compulsory, some banks leave it as optional.

Interest Rates

Private sector personal loans have either fixed or floating interest rates. The rates differ from bank to bank. Usually the fixed flat interest rate starts from 3.99% p.a. like Alliance Cashfirst Personal Loan, one of the personal loan schemes offered by Alliance Bank. The floating interest rates are pegged to each bank’s base interest rate. For instance, BSN MyRinggit offered by BSN Bank comes with a floating rate starting from Base Rate + 0.85%.

Fees and Charges

Fee Type Amount
Processing Fee None
Disbursement Fee None
Stamp Duty 0.5% of the total financing amount as per the Stamp Duty Act 1949 (revised 1989)
Brokerage Fee Usually around RM30
Will Writing or Wasiat As per the bank (optional or compulsory)
Early Settlement Fee or Ibra Usually 1% to 3% of the loan amount
Late Payment Fee 1% p.a. on monthly outstanding due

Eligibility Criteria

  • You be at least 18 years to apply for a loan. However, most loans are offered to individuals from 21 to 60 years of age.
  • You should be employed at any private sector companies, government-linked companies, multinational companies, or education sector companies as listed by each bank.
  • You should either be a salaried or a self-employed individual.
  • Most banks offer loans to individuals who are Malaysian citizens or have Malaysian PR status.

Documents Required

Salaried individuals

  • 1 photocopy of MyKad/NRIC.
  • Recent 3 months’ salary slips.
  • Recent 3 months’ bank statement.
  • Latest EPF statement.
  • Confirmation letter from employer confirming employment.
  • Latest EA Form.

Self-employed individuals

  • 1 photocopy of MyKad/NRIC.
  • Recent 6 months’ bank statement.
  • Form 9, 24, 49 or Business Registration Certificate.

How to Apply for Private Sector Personal Loan?

Online application

You can visit the personal loan scheme page on the bank’s official website and click on ‘Apply Now’. They will be redirected to a page where they will have to fill in their personal information and contact details. There will be an option to upload the mandatory documents as well. Once the documents are uploaded, you will have to click on ‘Submit’.

Offline application

You can also visit the bank’s nearest branch and request for the application form for the personal loan scheme. They will have to carry the mandatory documents as proof of identity and income. Once you submit the form and the documents the bank will let them know when the loan will be disbursed.

Personal Loan Calculator

Almost all banks have personal loan calculators on their respective websites. By using these calculators, you will have an idea how much instalment they will have to pay every month. When they compare the personal loan schemes offered by various banks using calculators, they will know which one is the best scheme for them. You will have to fill the required field on the calculators (financing amount, interest/profit rates, and loan tenure). Though the rates vary from bank to bank, the calculators will give an approximate idea how much instalment has to be paid.

Compare various personal loans and apply accordingly. Make sure to check whether you are eligible for the loan before applying!


Whether you are a self-employed or a salaried individual, you can apply for a private sector personal loan to cater to your immediate financial commitments. Compare the loans/financing schemes available by checking the interest rate/profit rate, the total financing amount, the tenure, and the fees and charges before making a decision. Apart from private sector loans, banks in Malaysia also offer personal loans for civil servants and pensioners.


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

A. Personal loans are usually disbursed within 2 working days after approval. However, this could vary from bank to bank.

Q. Do I need to take takaful coverage along with my private sector personal loan?

A. While takaful coverage is compulsory for a few banks, some highly recommend taking one. Takaful coverage takes care of the monthly instalments if the unexpected happens to you. It covers death and total and permanent disability.

Q. Do the loans come with a lock-in period?

A. Most personal loan schemes come with a lock-in period. If the loan is settled early, youwill have to pay an early settlement fee.

Q. As a self-employed individual, will I get a private sector personal loan from any bank?

A. Some banks offer private sector personal loans only to permanent salaried employees. However, there are banks that offer personal loans for self-employed as well.

Q. What is the maximum loan amount I can get?

A. Usually, banks offer financing amount up to RM150,000. However, some personal loan schemes like MBSB Private Sector PF-i offer up to RM300,000.

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