Unlock the Value of Your Assets for Financing with Collateral Loan Services

A collateral loan lets you borrow money by using an asset—like property—as security. Because the loan is backed by an asset, FIs offer higher loan amounts and lower interest rates than unsecured loans.

How It Works:

• Pledge an Asset – Use your properties like apartments, condos, shop lots and lands with a value up to RM100 million as collateral.
• Asset Valuation – The FI assesses its value to determine the loan amount.
• Loan Approval & Disbursement – Once approved, you receive the funds.
• Repayment – Pay off the loan in fixed monthly instalments.
• Asset Recovery (If Needed) – If repayments are missed, the bank may claim the asset.

Financial institutions accept various property assets depending on their value and liquidity, like houses, commercial properties, and land.

Example: A business owner pledges a shop lot worth RM1 million to secure an RM500,000 loan at a lower interest rate.

The amount depends on the asset’s market value and the bank’s Loan-to-Value (LTV) ratio, up to 50-60% of market value.

Example: A borrower pledging a condo worth RM600,000 could receive up to RM300,000 (50% LTV).

If repayments are missed, the bank has the right to seize and sell the collateral to recover the outstanding balance.

Potential Consequences:

• Asset Seizure – The FI may take over the pledged asset.
• Legal Action – Some FIs may pursue legal claims for unpaid amounts.
• Credit Score Impact – A default will lower your CTOS/CCRIS credit rating.

How to Avoid Default:

• Borrow only what you can repay comfortably.
• Ensure you have a stable income before applying.
• If struggling, discuss restructuring options with your bank.

Collateral loans typically offer higher loan amounts, lower interest rates, and easier approval, while unsecured loans are better for short-term borrowing.

Example: A borrower needing RM300,000 for a business expansion would get better terms with a collateral loan secured against the property than with a personal loan.

Yes. Since the loan is backed by an asset, FIs focus more on asset value than credit score. Borrowers with low credit scores can still qualify, though interest rates may be slightly higher.

The approval process typically takes three to four weeks, depending on the asset and documentation. 

Estimated Timeline:

• Loan Application & Asset Valuation – 3-5 working days
• Submission & Review – 1 week
• Approval & Loan Agreement Signing – 1 week
• Loan Disbursement – Cash received within 2-3 weeks

While collateral loans have lower interest rates, borrowers should be aware of additional costs:

• Loan Processing Fees – 5-6% (varies by bank and FI)
• Valuation Fees – 3-0.75% (deducted from loan amount)
• Legal & Stamp Duty Fees – 2% of the loan amount
• Early Settlement Fees – 6 months of interest charged for early loan repayment

Bluebricks ensures you get the best loan terms with the highest approval chances by:

• Providing Personalised Consultation – We assess your asset and financing goals.
• Matching You with the Right Bank – We connect you with FIs offering the best rates.
• Helping Rejected Applicants – If you’ve been denied, we help improve your financial profile.
• Speeding Up the Process – We handle paperwork and negotiations for faster approvals.

Example: A borrower rejected by Bank A due to a low credit score worked with Bluebricks and successfully secured an RM500,000 loan from Bank B with better terms.

Getting a collateral loan with Bluebricks is simple:

1. Schedule a free consultation to assess your loan options.
2. Submit your asset details for valuation.
3. We match you with the best bank for your financial needs.
4. Loan gets approved, and you sign the agreement.
5. Receive your funds within weeks.