Understanding How to Apply for a Loan If You’re Under AKPK

Key Takeaways

• Malaysian banks often reject loan applications from individuals under AKPK, but strategic steps can improve your chances.
• Resolve your AKPK record without upfront costs, clear negative entries, and improve your credit profile for loan approval.
• Applicants need to meet specific conditions, including stable income, employment tenure, and no active legal cases, to qualify for a personal loan under AKPK.
• The approval process involves clearing credit records, submitting updated CTOS reports, and working with experienced agencies like Bluebricks.

Navigating the process of how to apply for a loan if you are under Agensi Kaunseling dan Pengurusan Kredit (AKPK) can be challenging in Malaysia.

Malaysian banks often reject loan applications from individuals with AKPK records, even if their income is high. But don’t lose hope! With the right approach, it’s possible to obtain a personal loan for AKPK.

In this article, we explore methods to help you obtain a personal loan, even with an AKPK problem. Here’s what you should know:

• Loan Amount: Determine how much you need to cover current debts and immediate financial obligations.
• Interest Rates: Rates can vary widely, from 3% to 18% per annum, depending on your credit history and lender.*
• Loan Tenure: Repayment terms can extend up to 10 years, offering flexibility but requiring careful planning.*

*Note: Loan interest and loan tenure are determined internally by the bank based on your personal circumstances:

• Where do you work?
• Are you single or married?
• What is your educational qualification?
• Where do you live? (Living in the city is typically more expensive than in the suburbs)
• Are you employed full-time or on contract?
• Is your basic salary over RM5,000?
• What industry is your company in? (During the pandemic, for example, companies related to tourism, such as the airline industry, were considered high-risk industries)

Solutions for How to Apply Loan if Under AKPK

The Bluebricks Method offers a streamlined process to help clients resolve their AKPK records and access personal loans:

• Step 1: Settle your AKPK account without upfront costs or collateral.
• Step 2: Submit a loan application to the bank after clearing negative records.
• Step 3: Use the approved bank loan to repay outstanding debts and pay a one-time service fee.

Why This Method Works for Clients with AKPK Record

If your credit history is currently unfavourable, it’s essential to address all negative records before applying for a loan with the bank.

By resolving these issues, your credit report will show no outstanding negative entries, your credit card balances will be minimal, and your Debt Service Ratio (DSR) will reflect strong repayment ability.

This clean credit profile significantly improves your eligibility, allowing us to submit a loan application on your behalf with a higher likelihood of approval. Without addressing these issues first, the chances of rejection remain very high.

Advantages and Challenges of Applying for a Loan if Under AKPK

Advantages

• Access to immediate cash in hand for urgent needs.
• Previous negative records on your credit report are cleared.
• An improved credit report opens opportunities for larger purchases, such as cars or homes.
• Reduced risk of employer scrutiny over poor credit history, which is especially important for employees of large companies that regularly review credit reports.

Challenges

• A consultation fee is required.
• The bank loan process is not immediate, typically taking 30 to 90 days for approval.
• Taking a personal loan increases your overall financial liability.

Important Considerations When Applying for Loan if Under AKPK

Our settlement process is designed to be straightforward and transparent, with no hidden costs or unnecessary fees:

1. No Hidden or Upfront Fees

We do not charge any upfront payments, lawyer fees, document fees, account opening fees, or other advance costs.

2. Eligibility Requirements

• You must be a salaried employee earning more than RM5,000 per month.
• You must have your Employee Provident Fund (EPF) contributions regularly deducted.
• You must have at least six months of confirmed employment.

3. Ineligible Applicants

• We cannot assist clients with ongoing legal cases or summons.
• We cannot assist business owners, commission-based workers, or employees earning a monthly basic salary below RM5,000.

Our Service Fee for Personal Loans with AKPK

The service fee for personal loans for individuals under AKPK ranges from 15% to 30%, depending on individual circumstances. Several factors are taken into account when determining the exact fee:

1. CTOS Report Issues

• What problems need to be resolved?
• How much money is required to clear negative records?
• How many banks can we approach after resolving bad credit issues?
• What is the potential loan amount you can borrow after settlement?

2. Income Situation

• Is your income stable and consistent?
• What is your current income level?
• Which industry do you work in, and how does it affect perceived risk?

3. Debt Service Ratio (DSR)

• Is your DSR above 50%, impacting your repayment ability?

4. Risk Assessment by Lender

• Does the lender view you as a high- or low-risk borrower?

5. Cash-in-Hand Needs

• How much cash do you need immediately to meet your financial requirements?

6. Why Do I Need to Pay a Fee?

Submitting a loan application directly to the bank is unlikely to succeed if your credit history is unfavourable. This is where our expertise comes in.

Bluebricks leverages its network of funders, strong connections with banks, and extensive experience to secure loan approval on your behalf, ensuring you get the financial support you need.

Read More: Mortgage 101 Malaysia: What is Loan-to-Value Ratio?

How to Apply Loan if Under AKPK – The Duration

Approval timelines for AKPK personal loans typically range between 30 and 90 days. The exact duration depends on:

• Record Updates: The speed at which your current bank updates your credit records.
• Loan Amount: Larger loan amounts may require additional processing time.

How to Apply Loan if Under AKPK

Here’s a step-by-step breakdown of the process:

• Collect Credit Reports and Income Documents
• Receive Bank Proposal and Calculation Breakdown Within 3–5 days
• Sign Agreement and Settle Debts
• CTOS Update and Loan Submission
• Bank Approval and Fee Settlement
• Monthly Direct Payments to the Bank

What is AKPK?

The Agensi Kaunseling dan Pengurusan Kredit (AKPK) is a trusted government agency in Malaysia that specialises in helping individuals manage their debt effectively.

AKPK provides a range of services designed to promote financial literacy and stability, including:

• Financial education
• Financial counselling
• Debt Management Programme (DMP)

Through these offerings, AKPK equips individuals with the skills and strategies necessary to achieve financial independence and cultivate healthy financial habits.

Introducing AKPK’s Debt Management Programme (DMP)

The Debt Management Programme (DMP) offered by AKPK is a structured initiative designed to help individuals regain control of their debt and achieve financial stability.

However, the programme is not suitable for everyone, as certain eligibility requirements must be met.

To be eligible, individuals must not be declared bankrupt or involved in any ongoing lawsuits. Additionally, applicants must have sufficient net disposable income to cover their living expenses after contributing to the debt repayment plan.

Furthermore, the total outstanding debts of the applicant must not exceed RM2 million. For those who qualify, the DMP provides a tailored solution to manage debt effectively, paving the way toward a more secure financial future.

Read More: What is Balance Transfer in Malaysia & How Does it Work?

Programme Benefits

Participating in AKPK’s Debt Management Programme (DMP) offers significant advantages to individuals struggling with debt. These include:

1. A Personalised Debt Repayment Plan

The DMP provides a customised repayment plan tailored to each individual’s financial circumstances.

Factors such as income, living expenses, and existing debt obligations are carefully assessed to create a plan that allows participants to meet their commitments without undue financial strain.

2. Help from Expert Negotiators

AKPK acts as a mediator between debtors and creditors, negotiating favourable terms on behalf of the participant.

This could include lowering interest rates or extending repayment periods, making debts more manageable. By doing so, debtors can save significantly over the repayment period while avoiding loan defaults.

3. Free-of-Charge Services

Unlike many credit counselling programs that charge fees, AKPK’s DMP is a non-profit service that is offered at no cost. This ensures that individuals seeking financial assistance do not face additional financial burdens.

4. A Simplified Repayment Process

AKPK simplifies debt management by consolidating all debts into a single monthly payment.

This streamlined process helps participants keep track of their payments, reduces the risk of missed payments, and prevents further damage to their credit scores.

Additionally, the reduced complexity alleviates the stress of managing multiple obligations, allowing individuals to focus on rebuilding their financial health.

How to Apply for Loan if Under AKPK with Bluebrick’s Help

As a bank loan and debt consolidation agency in Malaysia, Bluebricks specialises in helping individuals with AKPK records regain financial stability and access personal loans. With our tailored approach, we ensure solutions that match your unique financial needs and goals.

Our expertise includes:

• Personal loan services
• SME loan services
• Mortgage loan services (to purchase a new home, refinancing and cashback purposes)
• Collateral loan services

Bluebricks Service Features & Benefits

Here are the features and benefits of Bluebricks’ bank loan services, such as applying for a loan if you’re under AKPK, while addressing common worries people have:

1. No Upfront Payment

Unlike scammers who demand advance payments, we never ask for money upfront. Your security is our priority.

2. No Interest Charged for Settlement Fund

We help clear your bad debts to boost your credit score, then secure a personal 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.

Sample Documents

Here is an AKPK CTOS sample:

How Do You Check If You Have AKPK?

To check if you have an AKPK record, you can purchase a CTOS report via Touch n’ Go and send it to us.

Our specialists will review the report and provide a free assessment to determine whether you have the AKPK status. Alternatively, you can check your status yourself using the sample guidelines we provide.

Another option is to submit a copy of your IC to Bluebricks, and we’ll assist you in obtaining the latest CTOS report at no cost. Our specialists will analyse the report and help you understand your credit standing.

If you have a ‘K’ status under the CCRIS details section of your credit report, this indicates that you are currently enrolled in the AKPK programme.

Can I Still Borrow a Bank Loan if I Have AKPK?

No, banks will not approve any loan applications while you have an active AKPK record.

However, Bluebricks has a solution for this situation. We can help you pay off your outstanding debts under AKPK first.

Once your AKPK record is cleared, we can then assist you in obtaining a new bank personal loan, provided you meet the following criteria:

• You must be a salaried employee earning RM5,000 or more monthly, with EPF contributions, at least six months of confirmed employment, and a stable job status.
• Applicants with ongoing legal cases or summons are not eligible.

These conditions ensure that you have a strong foundation for managing a loan effectively, even with a previous AKPK record.

What Options Do Customers with AKPK Have for Borrowing a Bank Loan?

Customers with AKPK records have several options to secure a bank loan, depending on their timeline and approach:

1. Slow Method (Saves on Consultation Fees)

• Low or Poor CTOS Score (300-650): Maintain consistent and timely payments to the bank for 6–12 months. Clear any Special Attention Accounts (SAA) and trade references. Once your score improves to 650 or above, you can apply for a personal loan.
• Late Payment History: Ensure timely payments for 6–12 months. After late payment records are delayed or removed (typically after six months), you can apply for a personal loan.
• SAA (Special Attention Account): Negotiate repayment terms with the bank and apply for a personal loan only after clearing the account.
• AKPK Programme: Exit the AKPK programme, settle all outstanding debts yourself, and wait for records to clear. New loans can only be applied for after clearing old debts or completing the AKPK programme, which takes up to 10 years.
• Trade References:
• Koperasi Trade: Negotiate repayment terms with Koperasi and clear debts before applying for a personal loan.
• Money Lender Trade: Resolve debts with money lenders, then apply for a personal loan.
• Telecommunication and Buy Goods Trade References: Negotiate repayment terms with the respective companies and clear debts before applying for a loan.

2. Fast Method

Work with a loan agency to resolve AKPK records quickly, allowing you to apply for a personal loan faster.

3. Borrow from Money Lenders

Money lenders are generally more lenient with AKPK records. However, loans are typically smaller, and interest rates are significantly higher (above 18% annually is considered loan sharking).

Bluebricks’ Advice for People with AKPK Records Seeking Personal Loans

When seeking a personal loan with an AKPK record, Bluebricks advises the following:

1. Determine the Purpose of Your Loan

• Do you need funds urgently (e.g., for emergencies or short-term needs)? Keep in mind that resolving bad credit can take at least 30 days.
• Do you need to clear your AKPK record quickly to apply for a credit card, purchase a car or home, or meet a job requirement?
• Are you looking to reduce the mental strain of constant calls from banks chasing repayments?

2. Assess the Urgency

• If there is no immediate need, consider clearing your AKPK record gradually before applying for a personal loan.

3. Review Your Budget

• Evaluate your financial habits and identify where improvements can be made to avoid falling into debt again.

4. Understand Temporary Solutions

• Recognise that loan agencies can offer temporary relief, but long-term financial stability requires sound budgeting and debt management.

How Much Personal Loan Can I Borrow with AKPK?

The maximum personal loan amount an individual can borrow is up to RM400,000 from a single bank.

The loan amount you can borrow depends on several factors, including your credit report, income range, and Debt Service Ratio (DSR).

Bluebricks provides a detailed assessment to determine your potential loan amount. Once you provide the necessary documents, we can calculate your eligibility and give you an estimate within 3–5 days.

Sample Proposal

How to Apply Loan if Under AKPK – FAQ

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