Bank Rakyat Personal Loan

Bank Rakyat is a local, Islamic bank with 180+ Branches. They offer 5 different Credit Cards, and 5 Personal Loans Read more Show less

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Compare Personal Loans by Bank Rakyat Malaysia

About the loan

  • Interest rate p.a.: 6.08%
  • EIR (Effective Interest Rate): 11.22%
  • Financing size: RM5,000 – RM150,000
  • Financing duration: 12 – 120 months
  • Late Payment Fee: 1% per year on outstanding balance
  • Early Settlement Rebate: Based on remaining duration & total profit margin
  • Other Fee(s): 0.5% Stamp Duty & RM30 Wakalah fee
  • Minimum Age: 18 (years)
  • Maximum Age at financing settlement: 60 (years)
  • No collateral or guarantor required
  • Interest rate p.a.: 9.73%
  • EIR (Effective Interest Rate): 17.47%
  • Loan size: RM5,000 – RM50,000
  • Loan duration: 12 – 60 months
  • Late Payment Fee: 1% per year on outstanding balance
  • Early Settlement Rebate: Based on remaining duration & total profit margin
  • Other Fee(s): 0.5% Stamp Duty & RM30 Wakalah fee
  • Minimum Age: 18 (years)
  • Maximum Age at loan expiration: 60 (years)
  • No collateral or guarantor required

All applicants must:

  • Be a Malaysian citizen
  • Be aged 18 (minimum) to 60 (maximum) years old at the end of the loan tenure
  • Have a minimum gross income (including fixed allowances) of:
    • RM2,000 and above for permanent employees
    • RM8,000 and above for contract employees

Depending on the repayment type, you can take different loan amounts based on your income too.

If payment is to be done via Biro Perkhidmatan Angkasa, Salary Deduction, or Salary Transfer to Bank Rakyat, the income bracket and total loan amount is as follows:

  • RM2,000 – RM4,000: 15 times monthly gross income
  • RM4,001 – RM6,000: 20 times monthly gross income
  • More than RM6,000: 25 times monthly gross income

If payment is to be done via Electronic Payment, then:

  • RM1,000 – RM5,000: 5 times monthly gross income
  • RM5,001 – RM10,000: 8 times monthly gross income
  • More than RM10,000: 10 times monthly gross income

When applying for personal loans, it is important to prepare several documents that provides personal identification and verification, as well as providing documents that show your financial health and capabilities. These documents are important for banks to evaluate your risk-levels and financial health.

Documents to prepare are:

  • Copy of your MyKad (Identification Card)
  • Latest 3 months salary slip
  • Latest 3 months bank statements of salary-crediting account
  • EPF statement
  • At least ONE of the following:
    • Confirmation letter from employer
    • EA form
    • e-B Slip by LHDN

There will be several fees and charges to be paid when applying for a personal loan from Bank Rakyat.

  • Stamp duty: 0.5% of the total financing amount
  • Late Payment Fee: 1% p.a. on outstanding amount
  • Takaful: Bank Rakyat will advise you to apply for Takaful coverage when applying
  • Wakalah or Agency fee: RM28.30 (inclusive of Broker Fee)

Amidst the many different personal loan providers out there, Bank Rakyat’s personal loans have features that make it a more attractive choice for your financial needs. For example, Bank Rakyat personal loans do not require any collaterals nor guarantors when applying.

  • Competitive interest rates
  • No collateral or guarantor required
  • Low minimum age requirement
  • Low late payment fee
  • Low stamp duty charge
  • Low Wakalah fee

Bank Rakyat’s personal loans are available with either a flat interest rate (fixed interest rate) or a floating interest rate (variable interest rate).

A flat interest rate is where a fixed interest is applied on the loan repayment until the loan tenure ends. A flat interest rate is good because it gives a clear repayment amount consistently, making it easier to plan finances, but it is typically higher than floating interest rates.

A floating interest rate (or variable interest rate), on the other hand, is unlike a fixed rate in which the interest rates can vary from time-to-time. A floating interest rate is usually lower than a fixed one, however, there is the risk of the rate running higher than the fixed one.

Bank Rakyat is an Islamic cooperative bank that was established in Malaysia on 28th September 1954. It is the result of the merger of 11 union banks. However, it only became Syariah compliant with several branches in 1993, before becoming the Islamic cooperative bank it is today in 2003. That changed enabled the bank to record encouraging profits year after year.

Its products and facilities include consumer banking, commercial financing, savings, and investments, as well as financial planning products. This allows the bank to handle the demands of the modern-day consumer. They have also received various recognitions as an industry player and as an outstanding cooperative organization internationally and in Malaysia.

Bank Rakyat offers a bevy of financial products to the consumers, such as personal loans with competitive rates. Here are some Bank Rakyat personal loan features:

Your monthly instalment is calculated by Bank Rakyat, but it is typically your total financing amount + interest rate, divided by the number of months over your financing tenure.

There are several methods to paying for your instalment:

  • Salary transfer to Bank Rakyat
  • Biro Perkhidmatan Angkasa (BPA)
  • Salary Deduction (only with participating employers)
  • Electronic payment (online transactions etc)

The max loan amount and loan tenure if set by Bank Rakyat based on several factors, inlcuding the age of the person and their monthly income. Using these factors, the risks of the loan are calculated by the bank before determining the maximum loan amount and maximum loan tenure.

Yes, you will require Takaful coverage when applying for Bank Rakyat personal loans. The bank will advise to you a Takaful packing during your application.

No, Bank Rakyat personal loans are open to Malaysian citizens only.