Personal Loan Guide

A personal loan is provided by a bank to you when you are in need of extra funds. The loan amount that you are eligible to apply for largely depends on your annual income earned, the higher your income the higher your personal loan amount. However, approval of your personal loan also depends on your credit score and your other financial commitments and debts under your name. You may use a personal loan to finance your education, to start a business, to pay off existing debts, or even to finance a dream holiday. Interest rates, loan tenure, and repayment terms may differ from bank to bank so be sure to use our free comparison tool to find the loan that best suits your needs.

Generally, there are three types of personal loans that you can apply for:

  • Fast Approval
  • Sometimes emergencies happen and you need cash immediately. Whether it's an unexpected medical situation or a big down payment that can't wait, you need to find ways to make the transaction happen. Getting a fast approval personal loan can save you from the hassle of scrounging every coin in the house. With it's quick approval time, you don't need to worry about where to find the money for urgent payments.

  • Civil Servant/GLC Loans
  • Government employees, civil servants, and those who work in government-linked companies can enjoy preferential interest rates with no guarantors or collateral. You can get a loan for as little as RM2,000, and up to 35 times your monthly salary, with a maximum repayment period of 10 years. Government loans also come with Shariah-compliant variants, which are also protected by Takaful insurance. GLC loans can have fixed rate or floating rates.

  • Islamic Loans
  • As with conventional consumer loans, the borrower applies for the loan from a bank or lending agency. The bank lends them an amount of money on the promise that it will be repaid regularly within a repayment period, until the amount borrowed is repaid in full. Unlike consumer loans, however, Islamic loans will not have interest rates, or other financing fees. Instead, loans follow specific rules as stated in the bank's Shariah-compliant contracts. However, there might still be fees or charges that you can incur if you make overdue payments.

Reasons to apply for a personal loan may vary from education for your children, to fund your dream holiday or wedding, transfer of loan amounts for lower interest rates, home renovations, to finance your hobbies, and even investment purposes. Whatever the reason, use our free comparison tool and complete the steps in the funnel to help us find the best loan for your needs.

To ensure your application is successful, you will need to have all the required documents in hand to submission including a copy of your NRIC, your latest payslips, a copy of the past 3 months bank statements, and your most recent EPF statement. You need to be at least 21 years old upon application of your personal loan with a good credit score, banks take this into account when they are evaluating your application. Be sure to check the minimum requirements when applying for your personal loan, or in any case, you can give our hotline a call at 012-385 0211 if you need assistance.

  • Your credit score is crucial at this point, banks will do a review of your credit history to evaluate your ability to repay your loan, your current commitments, and whether your financial heath check is in good shape. A weak credit score could mean that the bank sees you as a high risk borrower and as such, may charge you high interest rates or your loan may be rejected. Always do a check of the additional fees that come with your loan, including annual fees, handling fees, administrative fees, and any late payment fees. The effective interest rate (sometimes called EIR) is what you should look out for when comparing loans. This is because the EIR takes into consideration the compounding interest, processing and handling fees, which comes up to what you actually pay on your loan. Complete the questions in our free comparison tool when you check your eligibility for a personal loan, and you'll be able to find the best loan for your needs.

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