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You can get personal loans in Malaysia if you are a Malaysian, typically between 21 and 60 years old.

To qualify for a personal loan/finance you need to be:

  • A Malaysian or a Malaysian permanent resident.
  • Aged between 21–65.

Also, you will need to earn at least

  • RM9,600 per year if you are a Malaysian.
  • RM24,000 per year if you are Permanent Resident in Malaysia.

Some institutions also allow foreigners from certain countries to apply for bank personal loans. An applicant also needs to file documents that prove his residence and identity, or government-issued IDs and clearances.

In addition, proof of employment and income are needed, these details determine the maximum amount of money you can borrow. Banks also want their personal loan clients to have landline phones at home or in the office.

As one of the fast loans that banks and other financial institutions offer, personal loans give borrowers a quick way to get cash. But the borrower can also take advantage of the following extra features:

  • Flexible payment terms that allow you to pay above the required amount for your cash loans, as well as to change the terms of your personal loans, therefore helping you settle your debt faster.
  • A revolving credit line, which is a finance service that allows you to get a certain amount of cash advance for when you need the money, in exchange for paying a commitment fee.

In Malaysia, personal loans are considered as one of the easy loans to apply for because they are usually unsecured, this means that you don’t have to secure a guarantee or put up a possession of yours as collateral for the debt you’ll incur.

However, some personal loans are designated as secured, especially to people who have poor credit history but still need to secure a fast cash loans. For secured personal loans, a borrower can pledge his bank accounts or other valuable belongings as collateral in case of failure to pay back. Islamic loans are also available and follows different banking principles which makes them Shariah-compliant.

A personal loans is a line of credit provided by banks and lending companies in Malaysia to help a borrower ease into investments, consolidate debt, pay for car repairs, home renovation and more.

1. Photocopy of your NRIC (both sides)

2. If you are a salaried employee, you’ll need proof of your income. Banks accept a variety of documents to verify this, such as salary slips, tax returns, EPF statement or bank account statements. Depending on the bank, they will require a combination of these documents. In addition, if you are applying for a loan only available to Public servants and GLC employees or other special private enterprises, you often need to provide proof of employment letter by your employer. 

3. If you are self-employed, you’ll also need proof of your income. Banks accept a variety of documents such as Business registration certificate, Bank statements (usually 6 months), Tax declarations and EPF statements. Depending on the bank, they will ask you for a combination of these documents

Banks revise their personal loan rates from time to time. Personal Loan rates usually range from 3.5%–24% per annum. The loan or finance package you are eligible for depends largely on your occupation.

Some banks charge a fixed processing fee and other banks charge up to 4% of the approved loan amount. According to Malaysian law, there will be a stamp duty of 0.5% imposed on your approved loan/finance amount. Some banks will offer to pay this fee for you. In addition, you can also incur late payment fees (often a fixed 1% p.a. on the balance that is overdue) or early repayment fees.

The effective interest rate takes into account the fact that you are repaying your principal, but your total interest paid will not be reduced. Sounds complicated right? We’ll give you a short example here. Imagine you borrow $1000 for two years to buy a new mobile phone at a “flat interest rate” of 5%. You will be paying $87.50 per month for one year (effective interest rate of 9.10%).

Why is the effective interest rate almost twice as high? Let’s look at the two different calculations:

1. The loan balance is reduced every month. ((interest rate(%)/12) x loan amount) / (1-((1+interest rate(%)/12))(-loan tenure x 12)

2. The loan balance remains the same during the tenure ((Interest Rate x Years)+1)/(years x 12)) x Principal.

The Effective Interest/Finance Rate is introduced by government agencies to provide a clearer overview of the cost of borrowing. However, banks have some liberty in definition of effective interest rate and include or exclude certain factors to lower these rates. It is mandated by law for banks to notify you on the Effective Interest Rate.

When comparing loans of the same tenure, it is easier to look at the total payment you will be making on a loan. At GoBear we include all costs associated with the loan and break it down for you in easy categories so you can see what you are paying at a glance.

To qualify for a personal Loan/finance you need to be:

  • A Malaysian or a Malaysian permanent resident.
  • Aged between 21–65.

Also, you will need to earn at least

  • RM 9,600 per year if you are a Malaysian.
  • RM 24,000 per year if you are Permanent Resident in Malaysia.