The Best Personal Loans in Malaysia

|Posted by | Lifestyle, Money Matters, Personal Loan

The Best Personal Loans in Malaysia 2016 | CompareHero.my

Are you looking to start a business or get more capital for your existing business this year? Or are you planning to get that long-wished-for house renovation and repairs finally started?

A personal loan is a great financial tool, and to help you get the funds you need to realize your dreams and goals, we’ve prepared a list of the best personal loans in Malaysia for 2016!

But before you start applying for a personal loan, there are a few things that you must take into consideration in order to get the most out of your loan. After all, you want to get the best personal loan that is affordable and will suit your repayment budget in the long run. Here are some of the questions that you should include in your checklist before you submit that application form:

Are you working with a Government Linked Company (GLC)?

Like government servants, GLC employees are entitled to enjoy benefits when it comes to loan applications such as lower interest rates, longer tenure and in some cases, even rebates. So it really is worth your time to do some digging and find out if the company you’re working for is registered as a GLC in Malaysia.

How much can you afford to pay monthly?

It’s easy to get all excited with the maximum loan amount that you can borrow from the bank, but remember that it’s a loan, and you’ll have to repay it on a monthly basis with interest. Be sure to run through your budget and finances to make sure that you can afford to repay the loan. Bear in mind that the loan tenure will also affect the interest rate for your loan – the longer the loan is, the more interest you’ll have to pay – so choose .

How much are the interest rates, fees and charges?

Finding out about the amount of interest that you’ll be paying for a loan is the first thing you should always do, but many of us tend to overlook the additional fees and charges. Most banks don’t disburse the full amount of what you borrowed due to processing and stamp duty fees, any insurance premium (some banks makes it mandatory to have Takaful insurance on the loan) and the deduction for the first month’s repayment, so you need to be aware of all these fees to be able to set your budget right.

Also, take note of the early settlement and late payment fees. These could cost quite a bit, but for the latter, some banks such as Bank Rakyat even offer loans with zero early settlement fees. Bottom line is, do your homework beforehand to avoid all the additional charges!

Now that you know what to look out for before applying for a personal loan, let’s take a look at the best personal loans that the market has to offer in Malaysia this year. 

MBSB Personal Financing Mumtaz-i

Available for Government and GLC employees.
 Interest rate From 3.4% per annum for 2-4 years loan tenure.From 3.8% per annum for 5-10 years loan tenure.
Loan amount RM3,000 – RM250,000.
Tenure Up to 10 years.
Fees & charges Late payment fee is 1% from current outstanding loan amount.Early settlement fee is 1.5% of outstanding balance.Stamp duty of RM10.
Income requirement Minimum RM3,000 per month.
Eligibility requirement Minimum 19 years old.Not exceeding 60 years old or retirement age.Malaysian .

True to its meaning – Mumtaz translates to ‘the best’ or ‘number one’ in Arabic – MBSB Personal Financing Mumtaz-i offers one of the best interest rates for Government and GLC employees, from as low as 3.4% per annum to 3.8% per annum depending on the loan amount and tenure. It’s a syariah compliant personal loan that follows the Tawarruq concept in Islam.

What makes this particular personal loan as one of the most sought after among Malaysians is the fact that it offers a substantial financing of up to RM250,000 at unbelievably low interest rate, without the need of a collateral or guarantor.

There are a couple of things that you need to note before applying for this loan; firstly, you’ll need to have a working record of at least 3 years with your employer to be able to apply for this loan. Also, take note that there is a mandatory Takaful insurance package that comes with the loan upon approval.

It is also compulsory for the repayment of the loan to be deducted directly from your salary; hence a standing instruction for an automated debit for the monthly fixed installment must be established once the loan application is successful.

 The Best Personal Loans in Malaysia 2016 | CompareHero.my

Bank Rakyat Personal Financing-I Civil Servant (Rakan Pintar)

Available for Government and selected GLC employees.
Interest rate From 3.27% per annum for 1-3 years loan tenure.From 3.70% per annum for 5-10 years loan tenure.
Loan amount RM3,000 – RM200,000.
Tenure Up to 10 years.
Fees & charges  Stamp duty fee of 0.5% of loan amount.Late payment fee of 1% per annum from outstanding monthly repayment amount.No early settlement fee.
Income requirement Minimum RM1,000 per month.
Eligibility requirement Minimum 18 years old.Maximum 60 years old at the end of repayment tenure.Malaysian citizen.Minimum three (3) months of service.

Bank Rakyat has always been known for its array of exceptional financing products, and its Personal Financing-I Civil Servant (Rakan Pintar) personal loan is worth its merit. With an interest rate of as low as 3.27% per annum, it certainly ranks as one of the best personal loan the market has to offer.

To add to its uniqueness, this personal loan doesn’t require a collateral or guarantor and the Takaful insurance policy that comes with it is optional, although advisable. After all, you never know what might happen before the completion of your loan repayment.

Most importantly, the interest rate for those who apply for this loan without the Takaful coverage is calculated differently. Without it, the interest rate for a loan tenure of up to 3 years starts from 4.06% per annum whilst the interest rate for loan tenures of up to 10 years are charged from 4.51% per annum.

The repayment method is made simple, and you will need a standing instruction from the bank account your salary is deposited in, in order to transfer repayments directly to your Bank Rakyat loan account. Successful applicants also enjoy special benefits that include a free Premium Bank Rakyat Banking Membership and cashback of RM0.50 on all MEPS and Tabung Haji transactions at ATMs.

Maybank Personal Loan

Available for Government and Private employees.
Interest rate (fixed rates) 6.5% per annum for RM50,001 – RM100,000 loan amount.7% per annum for RM20,001 – RM50,000 loan amount.8% per annum for RM5,000 – RM20,000 loan amount.
Loan amount RM5,000 – RM100,000.
Tenure Up to 6 years.
Fees & charges Late payment fee of 1% per annum from the outstanding amount.Early settlement fee of RM200 or 3% of the outstanding loan balance, whichever is higher.
Income requirement Minimum RM2,500 per month.
Eligibility requirement Minimum 21 years old.Maximum 60 years old.Malaysian citizen.

The Maybank Personal Loan is one of the fastest and hassle-free unsecured loans out there, for both Government and Private employees. It offers several very competitive interest rates depending on the loan amount (as shown on the above table) and affordable monthly repayment amounts from as low as RM102.78, depending on your loan amount and tenure.

The Personal Care Insurance Protection is optional for this personal loan, however it is still advisable for you to take it so you’ll have protection against any unforeseen circumstances. To add to its appeal, there are no stamping or processing fees imposed for the Maybank Personal Loan. The application is made simple, you can apply for it online through the Maybank2u website or walk-in to one of Maybank’s branches.

The Best Personal Loans in Malaysia 2016 | CompareHero.my

Bank Rakyat Personal Financing-i Private Sector

Available for Private and selected GLC employees.
Interest rate (fixed rates) From 6.16% per annum for 1-3 years loan tenure.From 6.89% per annum for 5-10 years loan tenure.
Loan amount RM2,000 – RM150,000.
Tenure Up to 10 years.
Fees & charges Stamp duty fee of 0.5% of loan amount.Late payment fee of 1% per annum from the outstanding monthly payment.
Income requirement Minimum RM2,000 per month.
Eligibility requirement Minimum 18 years old.Maximum 60 years old.Malaysian citizen.

Yet another entry from Bank Rakyat, its Personal Financing-i Private Sector personal loan is specifically tailored to suit private sector professionals and employees (as well as selected GLC employees). It is wholly Shariah compliant and is based on the Tawarruq concept. The interest rates will vary depending on the loan amount and follow the latest Base Rate by Bank Negara Malaysia.

There is no need for collateral or a guarantor and it is virtually free of any hidden fees or charges – although the loan is still subject to stamp duty fee of 0.5% from the full loan amount and late payment fee of 1% per annum from the outstanding monthly repayment amount. In addition to that, you’ll need to commit to the bank’s mandatory Takaful insurance package upon approval.

This loan offers up to 5x salary for those with income between RM2,000 to RM4,000, 15x salary for income between RM4,001 to RM6000 and 25x salary for income exceeding RM6,001 per month. Although this personal loan is generally for full-time employees with fixed salaries, contractual professionals and employees with salary of minimum RM8,000 monthly are also eligible to apply for this loan.

See also: Most Expensive Personal Loan

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Syaza Abd Jani

About Syaza Abd Jani

Syaza is a Content Writer at CompareHero.my, with sharp eyes on the latest sales and bargains. When not busy with work, she can be found at breezy and airy corners leisurely reading whilst munching on something chocolaty.