Are you struggling with multiple loans and debt? A consolidation loan in Malaysia has become an increasingly popular solution for those juggling various monthly payments.
If you’re short on cash after settling your bank commitments each month, you’re not alone. Many Malaysians face similar financial challenges, and a consolidation loan might be the solution you’re looking for.
Understanding Loan Consolidation
Loan consolidation is a financial strategy that combines multiple loans into a single loan with one monthly payment.
For example:
- A personal loan from Bank A due on the 25th of each month – RM1,250
- Another personal loan from Bank B due on the 30th – RM2,250
- A credit card payment to Bank C on the 5th – RM775
- A second credit card bill from Bank D on the 10th – RM1,745
In this scenario, you’re managing four separate payments totalling RM6,020 across different due dates.
Through loan consolidation, these four separate commitments can be combined into a single loan with one monthly payment.
Requirements to Get a Consolidation Loan
To qualify for a consolidation loan in Malaysia through Bluebricks, you must meet these basic requirements:
- Have no legal cases recorded in CTOS/CCRIS
- Earn a monthly income above RM4,000
- Be a confirmed or permanent staff member at your workplace
However, note that Bluebricks may not be able to assist if you:
- Have active legal cases in CTOS/CCRIS
- Earn a monthly income of less than RM4,000
Understanding Bluebricks Service Fees and Charges
You might wonder why Bluebricks charges service fees for consolidation loans. Here’s what you need to know:
- While banks may initially decline your loan application, Bluebricks can help you secure bank loans
- We need to pay off your existing commitments upfront (without charging interest)
- No guarantor or co-signer is required
- No collateral is needed
- We help you receive your desired cash amount in hand
Disadvantages of Consolidation Loans to Consider
Before proceeding with a consolidation loan, be aware of these disadvantages:
- Service fees are required as part of the process (No upfront payment required)
- There’s an increased risk of accumulating new credit card debt once existing cards are cleared
- The total loan amount may be higher than your current combined debts
- The bank loan approval process isn’t immediate – expect at least 30 days, depending on your CTOS/CCRIS report status
Benefits of Consolidating Your Loans
Loan consolidation offers several advantages that can significantly improve your financial situation:
- Substantial reduction in monthly payments
- Lower interest rates (potentially from 18% to as low as 3% annually, depending on your salary profile)
- Accelerates debt clearance – potentially up to 7 years faster (refer to example below)
- Improved monthly cash flow and reduced financial pressure
- Simplified finance management with consolidated payments
- Temporarily resolves financial issues and provides breathing room
- Improved credit report after clearing previous bad records
- Better chances of qualifying for future car or home loans
- No need to worry about employers knowing about poor credit report (particularly for large companies that conduct regular employee credit checks)
- Enhanced credit report after clearing previous records
A Real Example of Faster Debt Clearance
Let’s look at how debt consolidation can accelerate your debt repayment with a practical example:
Current Situation:
- Credit card debt: RM100,000 (5% monthly payment = RM5,000)
- Personal loan: RM100,000 (12% interest, 5-year tenure = RM2,666.67)
- Total monthly commitment: RM7,666.67
After Consolidation:
- Combined loan amount borrowed: RM200,000
- New interest rate: 7%
- Loan tenure: 10 years
- New monthly payment: RM2,833.33
- Monthly savings: RM7,666.67 – RM2,833.33 = RM4,833.34
The Acceleration Effect:
By using your monthly savings of RM4,833.34 for early settlement, you could potentially:c
- Accumulate RM149,833.54 in savings over 31 months
- Clear your RM200,000 loan in just 31 months instead of 10 years
- Save approximately 7 years on your loan tenure
Why Was Your Consolidation Loan Rejected?
Several factors can lead to rejection of your consolidation loan application:
- A CTOS score below 500
- Bank payment delays exceeding one month
- Outstanding PTPTN payments
- Special Attention Account (SAA) records
- Negative trade references with service providers (arrears with Maxis/Digi/Coway/money lenders)
- Debt service ratio (DSR) exceeding 70% (whereby 70% of income goes to bank payments)
How Bluebricks Can Help You
Bluebricks can help facilitate your consolidation loan by:
- Settling your outstanding loans without charging interest
- Finding banks offering the lowest interest rates (as low as 3% annually, based on your salary profile)
- Securing longer loan tenures of up to 10 years
- Assisting in obtaining higher loan amounts
The Bluebricks Guarantee
When working with Bluebricks, you can expect:
- Settlement of all debts without interest, with no guarantor or collateral required
- No upfront payments, deposits, or legal fees collected
- A single, transparent fee structure with no hidden charges
- 100% bank loan arrangement
- Direct installment payments to the bank
- Safe and legitimate processes
How Bluebricks Charges
The following factors are considered for fees:
- Current issues in your CTOS report
- What issues need settling?
- How much money is needed for settlement?
- How many banks are available after settling bad credit?
- How much can be borrowed after settling bad credit?
- Your income situation
- Is your income stable?
- What’s your income amount?
- Which industry do you work in?
- Is your debt service ratio (DSR) over 70%?
- Does the lender consider your risk high or low?
- How much cash in hand do you need?
Why do I need to pay fees?
Typically, your loan application would be directly rejected by banks. However, Bluebricks uses lenders, bank connections, and our experience to get your loan application approved.
The consultation fees typically range from 15%-30% of the total loan amount.
How Long Does It Take to Approve a Consolidation Loan?
The fastest can be 30 days, and the longest can be 90 days. This depends on how quickly your current bank updates your record.
It also depends on how much loan amount you need (the larger the loan amount, the longer it takes).
Consolidation Loan Process
- Collect credit reports & full income document
- Get bank proposal & calculation breakdown in 3-5 days
- Sign agreement and perform settlement
- CTOS update & loan submission
- Bank approval and client repay us the fund and service fee
- Monthly direct payment to the bank
Who Should Consider a Consolidation Loan?
You might be a good candidate for loan consolidation if you:
- Feel the pinch after making monthly bank payments
- Consistently struggle to settle your outstanding credit card bills
- Have personal savings that do not reach 4 digits
- Find yourself managing multiple payment dates throughout the month
How to Check Your Bank Loan Eligibility
Before applying for a bank loan directly, assess your eligibility by checking two key factors:
First, review your CTOS score – if it’s below 500, you might face challenges getting approved by traditional banks.
Second, if you’re paying more than 50% of your monthly net salary toward bank commitments, you may have difficulty qualifying for a conventional bank loan. If either of these situations applies to you, consider seeking assistance from Bluebricks.
Consolidation Loan Calculator Guide
Want to see how much you could save with a debt consolidation loan?
Use the debt consolidation calculator to compute your current situation with a consolidated loan.
How to Use the Calculator:
- Enter the details of your current credit card debts and personal loans
- In the “Loan amount” field, input your total required loan amount
- Set the interest rate to 7% with a 10-year loan term
- Click “Calculate” to see your potential savings
The calculator will show you how many months of payments you could save by consolidating your debts.
Note that since this is an international calculator, the actual Malaysian instalment amounts may be approximately 22% higher than shown.
Should You Apply Directly to Banks or through Bluebricks Loan Agency?
You’re a good candidate for direct bank applications if you have:
- A CTOS score above 650
- Credit card usage below 70%
- Bank payments less than 50% of your net salary
If you’ve been rejected by two banks, consider seeking professional assistance through Bluebricks.
What to Do After Being Rejected by Banks?
Rather than submitting multiple applications (which we have seen clients do with 4-5 banks), take these steps:
- Understand the reasons for bank rejection
- Address these issues systematically
- Let Bluebricks help analyse your situation and find viable solutions
If I Have a Low CTOS Score and over 50% of my salary goes to Banks, Can I Still Get A Bank Loan?
Yes, consolidation loans are still possible if you:
- Are not involved in any legal cases
- Earn an income that exceeds RM4,000
What if I Want a Consolidation Loan Without Having to Pay Bluebricks Fees?
If you prefer to avoid service fees, focus on these areas:
- Make bank instalments on time consistently
- Reduce outstanding credit card balances to below 50% of credit limit
- Ensure total bank payments stay under 50% of your net salary
This way, your consolidation loan application is more likely to be approved.
Bluebricks’ Advice for Consolidation Loan Applications
- Consider the purpose of your loan:
- Need money in a short time (Bluebricks takes at least 30 days due to bad credit factors)
- Reduce monthly burden
- Want to increase monthly cash flow
- Need to clear bad credit in a short time (need to apply for credit card, buy car, house, job requirement)
- Want to avoid mental pressure caused by banks calling to chase money
- If none of the above, you can consider gradual repayment, or choose to enter AKPK
- Is there an emergency? If it is not urgent, you can slowly clear your debts
- Review your budgeting, then identify where problems occur
- Understand that loan agencies only temporarily solve your financial problems
How Much Personal Loan Can I Potentially Borrow?
We will calculate based on your:
- Credit report
- Character (income range)
- Debt service ratio (DSR)
We can help you check how much you can borrow. Just provide us with the necessary documents, and within 3-5 days, you will know the potential loan amount you qualify for.
Bluebricks Sample Proposal:
Frequently Asked Questions (FAQ)
Yes, a consolidation loan can be an effective financial solution.
It offers three key benefits: simplified payment management by combining multiple debts into one, potentially lower interest rates compared to individual loans, and reduced monthly instalments to ease your cash flow.
Several factors can make qualifying for a debt consolidation loan challenging:
• A CTOS score below 550 significantly reduces approval chances
• Credit card usage exceeding 70% of your limit raises red flags with lenders
• Monthly loan commitments higher than 60% of your net salary indicate high risk to banks
Our checking process won’t affect your CREDIT score. This is because we use a system to calculate your debt service ratio (DSR) and your current loan interest. Plus, we leverage our connections to review how much your profile can borrow.
Moreover, we don’t require you to sign any bank application form, so it is 100% guaranteed that it will not impact your credit score.
Use this formula:
Monthly instalment = [(Loan amount x interest per annum x loan tenure) + loan amount] / [loan tenure x 12 months]
Example calculation: Loan amount = RM100,000, Interest per annum = 10%, Loan tenure = 10 years
Monthly instalment = (100,000 x 10% x 10 years) + 100,000 / [10 years x 12 months]
Monthly instalment = (10,000 x 10 years) + 100,000 / 120 months
Monthly instalment = [100,000 + 100,000] / 120 months
Monthly instalment = 200,000 / 120 months
Monthly instalment = RM1,666.67
• CTOS report: front and back IC copy
• 6 months’ latest payslips
• Latest bank statement for 6 months
• Latest EPF Details statements for 2 years
• 2 years income tax (EA), if you have
You don’t need to trust us immediately. First, review our Bluebricks Proposal and breakdown calculation. Then, decide if you want to proceed.
You can also look at our successful examples as references.
Our risk is greater than yours because we pay for the settlement first. If the consolidation loan is not approved, we stand to lose more than you. (This is why we don’t take on every case)
To protect yourself from predatory lenders and scams when seeking a consolidation loan, be alert for these red flags:
• Pressure to make an immediate decision
• Lack of a secure website (URL should start with “https”)
• Guaranteed approval without checking your credit history
• Lack of physical address for the company
• Unsolicited loan offers through various channels
• Charging upfront fees before loan approval
• Difficulty finding clear contact information
Remember, legitimate lenders will always review your financial history, provide clear terms and give you time to consider their offer. They should also have proper licensing, secure websites, and transparent contact details.
Always conduct thorough research and trust your instincts when evaluating loan offers. If something seems too good to be true, it probably is.
The key is to know how to calculate consolidation loan instalments yourself. Using the formula provided earlier, you can determine your interest rate.
If your interest is higher than 18% per year, the loan you’re considering is not from a legal money lender.
Use this formula:
Monthly instalment = [(Loan amount x interest per annum x loan tenure) + loan amount] / [loan tenure x 12 months]
Example: Loan amount = RM100,000, Interest per annum = 10%, Loan tenure = 10 years
Monthly instalment = (100,000 x 10% x 10 years) + 100,000 / [10 years x 12 months]
Monthly instalment = (10,000 x 10 years) + 100,000 / 120 months
Monthly instalment = [100,000 + 100,000] / 120 months
Monthly instalment = 200,000 / 120 months
Monthly instalment = RM1,666.67
No, they cannot.
You may refer to the testimonials below for our successful cases.
What Do Our Clients Say?
How to Get Consolidation Loan from Maybank
Maybank offers specific consolidation loan packages with favourable terms, but they have strict eligibility requirements:
Key features
- Maximum loan amount: RM200,000
- Interest rate: 5.7%
- Maximum loan tenure: 10 years
Eligibility Requirements
- Ideally should work for a government-linked company that offers salary deduction
- The company must be on Maybank’s approved list
- CTOS score must exceed 550
- No history of late payments
- DSR cannot exceed 70% of your monthly income
If you don’t meet these criteria, particularly if your employer isn’t on Maybank’s approved list, you’ll need to explore other options.
Bank applications are likely to be rejected if you don’t fulfil these basic requirements.
Can I Get a Consolidation Loan with Bad Credit?
While traditional banks typically don’t offer loans to those with bad credit profiles, Bluebricks specialises in providing bad credit loan solutions for clients with challenging credit histories.
Read More: How to Secure Debt Consolidation with Bad Credit: A Complete Guide
Comparing Consolidation Loans vs Personal Loans
These two financial products serve different purposes:
| Consolidation Loans | Personal Loans |
| • Combines multiple existing debts (personal loan and credit cards) into one loan • May provide additional cash in hand • Simplifies multiple payments into one • Often offers lower overall interest rates (compared to interest rates from multiple existing debts) | • Provides a clean loan without needing to settle existing debts • Deposits cash directly into your savings account • Application may be rejected if your current commitments exceed 60% of your salary due to high risk • Fixed interest rates, making monthly payments predictable |
Consolidation Loan Rates
Interest rates typically range from 3% to 19%. Your specific rate depends on several risk factors:
- Loan amount (larger loans often qualify for lower rates)
- Debt service ratio (DSR) – lower ratio means lower interest
- Credit card utilisation – higher usage leads to higher rates
- CTOS score – better scores qualify for lower rates
- Employer type (government servants often get the lowest rates due to salary deduction options)
Malaysian Banks Offering Debt Consolidation Loans
1. RHB Bank
| Sector | Private | Civil | Pensioner |
| Loan Amount | Up to RM150,000 | Up to RM300,000 | Up to RM150,000 |
| Interest Rates | 7.62% | 3.04% | 3.80% |
| Tenure | Up to 7 years | Up to 10 years | Up to 7 years |
Loan amount: Up to RM250,000
Interest rate: 5.42%
Tenure: Up to 8 years
Minimum income: RM5,000
3. Bank Rakyat
Loan amount: Up to RM400,000
Interest rate: 2.89%
Tenure: Up to 10 years
Minimum income: RM2,000 (salary deduction preferred)
Loan amount: Up to RM400,000
Interest rate: 2.77%
Tenure: Up to 10 years
Minimum income: RM3,000
5. HSBC
Requirement: HSBC/HSBC Amanah savings or current account holder for at least 6 months
Interest rate: 7.5%
Minimum income: RM3,000
6. AmBank
Loan amount: Up to RM150,000
Interest rate: From 8.99%
Tenure: Up to 7 years
Minimum income: RM3,000
Loan amount: Up to RM250,000
Interest rate: 10.75%
Tenure: Up to 5 years
Minimum income: RM2,000
8. Maybank (GLC Only)
Loan amount: Up to RM200,000
Interest rate: 5.7%
Tenure: Up to 10 years
Minimum income: RM3,000
Note: Only available to employees of Government-Linked Companies (GLCs)
9. Bank Islam (Selected Industry Only)
Loan amount: Up to RM400,000
Interest rate: From 2.49%
Tenure: Up to 10 years
Minimum income: RM2,000
Requirement: Salary crediting and auto-deduction
Final considerations
Before applying for any bank loan, you must fulfil the following:
- CTOS score above 550
- No late payments
- DSR (debt service ratio) of not more than 70%. Otherwise, bank applications are likely to be rejected
Bluebricks Service Features & Benefits
Here are the features and benefits of Bluebricks’ bank loan services, such as applying for a consolidation loan in Malaysia:
1. No Upfront Payment
We do not ask for any payment upfront. Beware of scammers who demand advance payment with false promises. We want you to be assured that we are genuinely here to help.
2. No Interest Charged for Settlement Fund
We help clear your bad debts to boost your credit score, then secure a consolidation loan to cover these debts and our fees.
We do not charge monthly or service interest. Throughout the whole process, we are there to support you through any delays (*not caused by you).
3. Only One Fee
We have just one straightforward fee—no hidden charges or surprise costs. Unlike complex billing systems, we maintain complete transparency about what you’re paying for.
4. Proper Agreement Signed Before Execution
Before submitting any documents to the bank, we ensure a formal agreement is signed with you, keeping you in control. We only receive payment after your loan is approved, guaranteeing we will not submit anything without your explicit consent.
5. Obtain Your Proposal Within 3–5 Days
We efficiently prepare a comprehensive proposal for you in just 3–5 days. This proposal will outline the best loan options suited to your specific situation. It’s worth the short wait to get a well-crafted plan that can significantly improve your financial outlook.
6. Comprehensive Proposal
We know that one size does not fit all. Unlike agencies that push a single, often high-interest loan, we provide you with at least two tailored options. This approach allows us to find the best fit for your unique financial situation and goals.
7. You Pay Us Afterward
Our fee is only due after your loan is successfully secured and disbursed. This payment structure ensures your peace of mind throughout the process, as you only compensate us once you have seen tangible results.
8. Provision of Emergency Funds* (case-to-case basis)
At Bluebricks, we understand that immediate financial obligations—such as external debts or medical expenses—often cannot wait for the standard bank loan approval process, which can take at least 30 days.
To bridge this gap, we offer an emergency fund from our own resources to promptly address these urgent needs. After confirming your eligibility for a bank personal loan and settling your bad credit or credit card debts, we can provide this emergency fund to alleviate your burdens without immediate financial strain. The amount advanced is subsequently recovered from the new personal loan you obtain, ensuring a seamless transition to financial stability.
*Disclaimer: All information is based on personal opinion and industry experience only, and does not constitute any form of advice. Please consult with relevant professionals before making financial decisions.
