Why do you want a personal loan?

Personal loans in Malaysia are used for a variety of different reasons. Before you start your application process, it should be clear to you how much you want to borrow, what you are planning to use the money for and how you plan to pay it back. The reason why you are getting the loan plays a role in the application process because it tells banks how you deal with money. If you are up to you ears in debt and are trying to get a personal loan for a 10-day holiday, the bank is not likely to approve your application, simply because your behavior signals bad money habits

Are you eligible for a personal loan?

Age – To qualify for a personal loan in Malaysia, you need to be over 21 years old, but not older than 60. For some loans the requirements are even tighter, requiring people to be under 55 or 50. Income – In order to be eligible for a personal loan, you need a level of income that ensures the bank that you will be capable of services the loan requirements. Most personal loans in Malaysia require you to have an income of at least RM 1,000, although RM 2,000 – to RM 3,000 is more common. Of course, the higher your income, the better. If you do have an exceptionally high income, you might qualify for a select few low-interest rate loans, only available to top earners. Residency Status – In order to qualify for a personal loan, you will need to be a Malaysia citizen or have Permanent Resident (PR) status. Credit Score – Before your loan application is approved, a thorough credit check is done to make sure that you are able to repay your loan. A poor credit history could lead to higher interest rates or loan rejection. You should always maintain a good credit history. Debt Service Ratio – If you have ever applied for acar loan, home or personal loan, you will probably have heard the phrase ‘debt service ratio’ (DSR) from the bank’s loan officers whilst they explain to you how the loan works. The debt service ratio is one of the key factors that the bank will evaluate while performing their due diligence during the loan approval process.The DSR is calculated based on the total of all your monthly debt obligations – often called recurring debt / commitment, which includes your total loan on mortgage, car loans, personal loans, your minimum monthly payments on any credit card debts, your other loans, together with the monthly commitment for the current application, divided by your net income – after the deduction of income tax / KWSP/ SOSCO (where applicable). Employment status – Depending on your employment status, you may be ineligible or will have additional requirements in order to apply for a personal loan. For example, fresh graduates will need to have at least 6 months’ pay slip to apply for a personal loan, if not some banks will require a guarantor.

How much can you borrow?

As a general rule, banks will offer a loan amount of not more than 30% of your current financial commitments. For personal loans, banks will usually offer between 2 to 3 times your monthly salaries. Calculate your financial commitments before you make the application and see if you can really afford to take up a loan. Some people may also forget to look at the loan’s requirements such as the amount of minimum salary required.

What do you need to know to compare and get the best personal loans for yourself?

- Effective interest rate (EIR) - Income requirements - Credit score - Late payment fee - Collateral or guarantor requirements

Can you afford a personal loan?

Before applying for a personal loan, you must consider your financial appetite and capability to afford one. It is suggested that every individual’s debt-income ratio should linger between 40% and 45% so that you will not be overwhelmed by debts. Debt-income ratio refers to the ratio of total debts to your income on monthly basis. For example, Ben earns RM2,000 a month and his ideal debt-income ratio is 40%, which means he can afford RM800 in terms of debts. If you really the funds to resolve your issue or achieve a certain goal, you must learn to live modestly and plan your budget well in order to sustain a healthy credit score.

Siapa yang sesuai untuk menggunakan kad kredit rebat tunai?

Kad kredit rebat tunai biasanya sesuai untuk bagi pengguna yang berbelanja dalam kategori berikut: - Bayaran bill automatik - Perbelanjaan online - Petrol - Di Pasar Raya - Farmasi - Belanja Dapur - Telekomunikasi Jika anda berbelanja dalam kategori diatas, anda patut mendapatkan kad kredit rebat tunai. Tetapi, dengan kadar rebat yang berbeza, buat kajian dan perbandingan terlebih dahulu untuk memiilih kad yang sesuai untuk anda. Kad kredit rebat tunai yang betul akan membantu anda untuk mendapatkan penjimatan maksima.

Siapa yang sesuai untuk menggunakan kad kredit Air Miles?

Kad kredit Air Miles sesuai digunakan bagi pengguna berikut: - Mereka yang sering menggunakan penerbangan, sama ada dalam ataupun luar negara - Gemar berkunjung ke ruang plaza premium di lapangan terbang - Sering menggunakan penerbangan AirAsia, Malaysia Airlines, atau Singapore Airlines - Inginkan ganjaran berkaitan dengan kelab golf, termasuklah fi hijau percuma - Inginkan diskaun semasa membuat tempahan di hotel - Selalu menggunakan kad kredit semasa di dalam atau luar negara - Ingin menebus tiket penerbangan percuma, atau menaik taraf kelas penerbangan - Inginkan insurans perjalanan tambahan Jika anda memiliki ciri-ciri diatas, kad Air Miles sesuai untuk anda. Jadi, apa tunggu lagi? Bandingkan kad Air Miles di pasaran segera dan dapatkan lebih ganjaran setiap kali anda terbang!

Siapa yang sesuai untuk menggunakan kad kredit mata ganjaran?

Kad kredit mata ganjaran sesuai untuk pengguna yang: - Inginkan kad yang menawarjan ganjaran untuk setiap pembelian, tanpa banyak syarat - Pengguna setia satu jenis kad kredit sahaja - Ingin kebebasan untuk memilih ganjaran kad kredit berbanding terikat kepada satu sahaja (rebat, ataupun air miles) - Tidak sesuai untuk mereka yang gemarkan rebat ataupun air miles Kad kredit ini secara amnya sesuai jika anda gemar menebus ganjaran-ganjaran yang berbeza. Jika anda inginkan rebat petrol atau rebat tunai, kad kredit dengan rebat lebih sesuai untuk anda.

Siapakah yang sesuai menggunakan kad kredit tanpa yuran tahunan?

Jika anda mencari kad kredit asas, ianya sesuai untuk anda yang: - Jarang menggunakan kad kredit, dan hanya menggunakannya untuk keperluan sahaja - Graduan yang baru bekerja dan ingin membina sejara kredit - Pengguna pertama kad kredit yang masih belum biasa dengan cara menggunakan kad kredit dengan betul

Siapa yang sesuai menggunakan kad kredit Islamik?

Kad kredit Islamik sesuai untuk mereka yang mencari produk yang patuh Syariah, dan juga mempunyai perlindungan Takaful untuk pengguna dan keluarga. Malah, kad-kad kredit Islamik turut menawarkan faedah seperti mata ganjaran dan rebat tunai seperti kad konvensional. Jadi, pengguna bukan Muslim juga boleh mengambil kesempatan untuk memohon kad ini.

How does an Islamic personal loan work?

Islamic personal loans in Malaysia are commonly referred to with the term ‘personal financing’. It is a term that is widely used in Islamic banking instead of the term ‘personal loan’, which is used in conventional banking. Islamic personal financing in Malaysia is based on the concept of Bai’ Al-‘Inah. It is a concept which involves selling and buying back an asset by a seller (bank) on a deferred payment basis. A seller (bank) will sell to a buyer (client) on a cash basis. The seller will later buy back the transaction on a deferred payment basis, where the price is higher than the cash price. It can also be applied when a seller sells to a buyer on a deferred basis. A seller will later buy back the transaction on a cash basis at a price which is lower than the deferred price, thus the transaction amounts to a loan. In personal financing, the asset involved in the Bai’Al-‘Inah concept of buying and selling would be the cash. Other Shariah concepts used by Islamic banks are the Shariah principle of Murabahah via Tawarruq for personal financing. By definition, Murabahah is a type of sale where the commodity is sold for cash or at a deferred price. Tawarruq refers to purchasing an asset with a deferred price, and then selling it to a third party to obtain cash. Islamic banks will then charge customers an amount known as a ‘profit rate’ (essentially an interest rate) for providing them with a personal financing facility. This is because charging interest is not allowed in Islamic banking. Islamic banking uses the term profit rate rather than interest rate because of the way the financing is structured. Therefore, unlike personal loans offered by conventional banks, which have interest rates, Islamic banks will offer personal financing with a profit rate that will be defined in the personal financing contract. Under Islamic banking, personal financing is not considered a loan, but instead as the purchase and resale of an actual asset. For example, it can be a car, house, commodity or a stock, depending on the type of financing you need.

Category | CompareHero

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