If you’re looking for the best personal loan in Malaysia to suit your needs, you’ve come to the right place.
At Bluebricks, we understand that applying for personal loans can be overwhelming, but fear not!
We’ll break down the key features, interest rates, and more so you can make an informed decision and secure the funds you need.
So, if you’re ready to take the first step toward achieving your financial goals, keep reading to discover the best personal loans in Malaysia!
What are the Best Personal Loans in Malaysia?
To guide you through your search for the best personal loan in Malaysia, we have narrowed down a list of the top contenders. Here’s a closer look:
1. Al Rajhi Personal Financing-i
Al Rajhi Personal Financing-i is a Shariah-compliant personal financing product offered by Al Rajhi Bank Malaysia.
Loan Features:
- Interest rates as low as 6.20% p.a.
- Borrowers receive a reduced rate of 3% if repayments are made through salary deductions.
- Al Rajhi Bank provides special financing rates for employees from certain companies or sectors.
- Loan amount of up to RM250,000
- Loan tenure of up to eight years
2. Alliance Personal Loan
The Alliance Bank Personal Loan is a popular choice for borrowers due to its low interest rates, fast approval process, and flexible repayment terms.
Loan Features:
- Interest rates as low as 4.99% p.a.
- Loan amount of up to RM150,000
- Loan tenure of up to seven years
3. AmBank AmMoneyLine
AmBank AmMoneyLine by AmBank is a personal loan that can be used for any purpose, such as debt consolidation, home renovation, education, or travel.
Loan Features:
- Interest rates as low as 6.00% p.a.
- Loan amount of up to RM100,000
- Loan tenure of up to five years
4. CIMB Cash Plus Personal Loan
The CIMB Cash Plus Personal Loan is a personal loan product offered by CIMB Bank, one of the leading banks in Southeast Asia.
Loan Features:
- Interest rates as low as 4.38% p.a.
- Loan amount of up to RM100,000
- Loan tenure of up to five years
5. HSBC Amanah Personal Financing-i
HSBC Amanah Personal Financing-i is an Islamic personal financing product offered by HSBC Amanah.
Loan Features:
- Interest rates from 4.88% to 10.5% p.a.
- Loan amount from RM6,000 to RM250,000
- Loan tenure from two years to seven years
6. Maybank Personal Loan
The Maybank Personal Loan is one of the personal loan products offered by Maybank Malaysia, a leading bank in the country.
Loan Features:
- Interest rates as low as 6.50% p.a.
- Loan amount of up to RM100,000
- Loan tenure of up to six years
7. RHB Personal Financing
RHB Personal Financing is a type of personal loan offered by RHB Bank in Malaysia.
Loan Features:
- Interest rates as low as 13.25% p.a. (equivalent to a flat rate of 7.19%)
- Loan amount of up to RM150,000
- Loan tenure of up to seven years
- On-the-spot approval and disbursement
8. Standard Chartered CashOne
Standard Chartered CashOne is an unsecured personal loan that can be used for any purpose.
Loan Features:
- Interest rates as low as 7.50% p.a.
- Loan amount of up to RM200,000
- Loan tenure of up to seven years
Read More: Personal Loan Malaysia: All You Need to Know Before Applying
What Type of Personal Loan Should You Apply For in Malaysia?
When you’re considering applying for a personal loan in Malaysia, it’s crucial to know what type of loan aligns with your specific financial needs.
Identifying the right loan for your purpose can save you money, minimise risks, and help you achieve your goals more effectively.
Here’s a breakdown of the key factors to consider when deciding the best personal loan in Malaysia to apply for:
1. Identifying Your Purpose
Before embarking on your personal loan journey, ask yourself: Why do I need this loan?
Whether it’s for a major purchase, funding your education, or any other financial goal, knowing your purpose will help you choose the right loan.
2. Secured & Unsecured Loans
Secured loans are supported by collateral, like your home, car, or even a savings account.
While they often offer lower interest rates, they come with a higher risk: If you do not repay the loan, you risk losing your collateral.
Conversely, unsecured loans do not require collateral. They are suitable for borrowers who don’t want to risk their assets but typically come with higher interest rates.
3. Conventional & Islamic Loans
Conventional loans are based on traditional banking principles where banks profit from the interest charged on the principal amount.
Repayment is made in regular instalments, and borrowers bear all the risks.
Moreover, interest rates on conventional loans can be fixed or floating, but it’s essential to note that they compound if payments are overdue.
Sharia-compliant or Islamic loans in Malaysia, however, adhere to Islamic finance principles, which prohibit interest-based transactions (riba). Instead, these loans rely on profit-sharing or fee-based structures.
Additionally, Islamic loans can be used for any purpose permitted by Shariah laws, making them a viable option for borrowers seeking ethical financing.
Read More: Home Equity Loan vs Personal Loan Malaysia: Which is Better?
How to Choose the Best Personal Loan in Malaysia
Getting the best personal loan in Malaysia requires careful consideration of several vital factors. Below are some key factors to consider to make an informed decision.
1. Interest Rates and Fees
One of the most critical aspects to consider when looking for a personal loan in Malaysia is the interest rates and associated fees.
It’s advisable to obtain quotes from multiple financial institutions and compare the annual percentage rate (APR) offered by each.
2. Loan Amount and Tenure
Evaluate the minimum and maximum loan amounts each bank or financial institution offers and ensure they can provide the loan amount you need for your specific purpose.
Additionally, consider the available loan tenures, which can range from 60 to 120 months, and select a term that aligns with your budget and repayment capability.
3. Eligibility Criteria
Review the eligibility criteria set by banks and financial institutions. These criteria may include factors such as:
- Age
- Citizenship status
- Employment history
- Creditworthiness
It’s crucial to ensure you meet these criteria to avoid wasting time on applications that are likely to be declined.
4. Income Requirements
To qualify for a personal loan in Malaysia, your income often plays a pertinent role.
So, be sure to know the banks’ and financial institutions’ minimum income criteria and confirm that your earnings meet or exceed their requirements.
5. Credit Score
Check your credit score and understand your creditworthiness. Different banks and financial institutions in Malaysia have varying credit score requirements, so choose one that aligns with your credit profile.
Furthermore, be aware of how your credit score will impact the interest rate you’ll receive; the higher your score, the lower the interest rate.
6. Repayment Options
Another factor to consider when choosing the best personal loan in Malaysia is the repayment options available.
Some banks and financial institutions offer flexibility in terms of payment frequency (e.g., monthly, bi-weekly) and payment methods (online, automatic withdrawals, cheques).
You should choose the option that aligns with your financial preferences and capabilities.
7. Early Repayment Penalties
Review the bank’s or financial institution’s policy regarding early repayment penalties. This is because they may charge fees for paying off the loan before the agreed-upon term.
If you plan to make early payments, opt for banks and financial institutions with minimal or no early repayment penalties.
8. Interest Rate Type
Next, understand whether the bank or financial institution offers fixed or variable interest rates.
Fixed rates provide predictability, as your interest rate remains constant throughout the loan term.
In contrast, while variable interest rates might start lower, they can fluctuate, which might alter your monthly payments.
9. Terms and Conditions
Lastly, it’s essential to carefully read and compare the terms and conditions of the loan agreements, especially any fine print.
Look for clauses that may impact your ability to repay or involve hidden fees. A thorough understanding of these terms can prevent unpleasant surprises down the road.
By paying attention to the nine factors above, you can easily navigate personal loans in Malaysia and select the option that best suits your financial needs and goals.
Read More: How to Pay Off Debt: Effective Ways to Pay Off Debt Fast
How Bluebricks Can Help You Find the Best Personal Loan in Malaysia
Navigating the financial market for the best personal loan in Malaysia can be difficult.
However, with a trusted bank loan and debt consolidation agency like Bluebricks, this journey becomes more manageable. Here’s a list of the services we offer:
- Personal loan services
- SME loan rejected services
- Mortgage loan rejected services (for buying a new home, refinancing and cashback purposes)
- Collateral loan services
Expert Loan Consultancy Service
Bluebricks isn’t just a loan provider; we’re also your financial advisor. Our team has the knowledge and skills to suggest the most fitting loan product based on several individual circumstances.
They include:
- The specific loan amount you require.
- How quickly you need the funds.
- Whether you or your parents own a property that has been held for over ten years.
- Your income level.
- Your CTOS score (such as your credit score and credit history).
Best Personal Loan Malaysia – FAQs
Whether you’re a first-timer trying to understand the basics or someone well-acquainted with borrowing in Malaysia, questions will always arise.
Thus, we’ve crafted this comprehensive FAQ guide on the best personal loans in Malaysia to answer common questions and clarify the intricacies of the country’s lending environment.
The best personal loan in Malaysia can vary depending on your specific financial situation, credit score, and borrowing needs.
Moreover, different banks and financial institutions in Malaysia offer personal loans with varying interest rates, loan amounts, and repayment terms.
Some of the major banks in Malaysia that offer personal loans include Maybank, CIMB, Public Bank, Hong Leong Bank, and RHB Bank, among others.
Alliance Bank offers the best personal loan in Malaysia, if you’re looking for one with a low interest rate.
Starting from 4.99% per annum, their personal loan comes with a substantial financing amount of up to RM150,000 and a flexible repayment tenure of up to seven years.
Once you’ve chosen the best personal loan for your situation, you can use it for a variety of purposes, such as:
- Debt consolidation
- Settling high-interest debts such as private loans and loan shark or ah long loans.
- Securing start-up capital for a new business.
- Settling bad credit history concerns such as AKPK, late payments, and Special Attention Account (SAA).
- Managing your monthly overhead expenses.
- Covering medical bills.
- Financing home improvements and repairs.
- Addressing unforeseen financial obligations.
