- Increasing your loan amount in Malaysia is possible but depends on various factors and the policies of banks.
- Borrowers should consider the implications of higher monthly payments, increased interest rates, extended repayment terms, and more.
- If increasing a loan is not an option, alternatives like applying for a second loan or using a credit card for smaller amounts.
Can you increase a loan you already have in Malaysia? If you’re currently repaying a loan, this is a question you’ve likely been asking.
After all, having the flexibility to increase your loan amount can be a game-changer, especially if you encounter unexpected expenses.
Keep reading to discover the answer to this question and more below!
Can You Increase A Loan You Already Have?
When embarking on your financial journey, there may come a time when the loan amount you initially borrowed falls short of your current needs.
This raises a critical question for many borrowers in Malaysia: Can you increase a loan you already have?
The answer is nuanced, depending on various factors as well as the specific guidelines set forth by each financial institution.
How to Increase Your Loan Amount in Malaysia?
There are a few ways you can increase your existing loan amount in Malaysia. They include:
1. Topping Up an Existing Loan
Many banks in Malaysia offer the option to top up an existing loan.
This essentially means refinancing your current loan and altering the original terms based on the bank’s criteria and your financial situation.
It’s a convenient option but requires careful consideration of the new terms and conditions.
2. Debt Consolidation Options
Another avenue is consolidating your debt, possibly transferring it from one bank to another. This can potentially secure you either:
- A higher loan amount
- A lower interest rate
- An extended loan tenure
- It’s a strategy often employed to streamline finances and manage repayments more effectively.
What to Consider Before Increasing a Loan You Already Have
1. Increased Monthly Payments
A larger loan amount usually translates to higher monthly repayments. It’s crucial to evaluate whether your budget can accommodate this increase without straining your finances.
2. Higher Interest Rates
The revised loan might come with a higher interest rate, impacting the total cost of borrowing over time.
3. Extended Repayment Term
Increasing your loan can often extend the repayment period, which might mean paying more in interest in the long run.
4. Early Repayment Charges
Some loans come with penalties for early repayment. It’s advisable to check for any such charges on your original loan before opting for a top-up.
What Happens If You Cannot Increase A Personal Loan You Already Have?
If the option to increase your existing loan isn’t available, here are several alternatives you can take:
1. Apply for a Second Loan
First of all, you could apply for a second loan with a separate repayment agreement.
And while this would mean managing two different repayment plans, it could offer a lower interest rate compared to topping up your existing loan.
2. Use a Credit Card
For smaller amounts, a credit card might be a more suitable option, especially if you can repay the borrowed amount quickly to avoid high interest charges.
3. Re-evaluate Your Financial Strategies
Before opting for additional borrowing, consider other financial strategies.
Could you achieve your goal by cutting expenses or starting a side hustle? Is it possible to focus on paying off your existing debt first?
These alternatives can sometimes offer a more sustainable path to financial stability.
Bluebricks’ Comprehensive Loan and Consultancy Services
In conclusion, you can increase the personal loan you already have, but it’s not a simple choice. Careful consideration is needed before you take further steps.
This is where we at Bluebricks, a reliable bank loan and debt consolidation agency, step in to assist individuals in understanding and managing the financial aspects of securing a large loan.
We offer a range of services that cater to different needs, including:
- Personal loan services
- SME loan services
- Mortgage loan services (for buying a new home, refinancing and cashback purposes)
- Collateral loan services
Additionally, our consultancy services are tailored to your specific financial situation, considering factors like:
- The specific loan amount you require.
- The urgency with which the loan amount is needed.
- 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).
By carefully assessing these aspects, we ensure that you receive a loan product that best suits your circumstances, guiding you towards a more secure financial future.