Key Takeaways
- Personal loan apply online applications offer convenience, speed, and accessibility, while in-person applications provide personalised assistance and are suitable for specific situations.
- Consider your preferences and specific financial circumstances when choosing between the two options.
Are you considering a personal loan in Malaysia and wondering whether to apply in-person or to opt for a personal loan apply online?
Making the right choice between these two application methods can significantly impact your borrowing.
In this article, we’ll help you decide between in-person and online personal loan applications in Malaysia.
We’ll outline the advantages and disadvantages of each method, allowing you to make an informed choice that suits your financial preferences and requirements.
In-Person vs Personal Loan Apply Online in Malaysia: Which is Better?
When applying for a personal loan in Malaysia, there are several important factors to consider between applying online and in-person. Listed below are some of the key considerations:
1. Convenience
a. Online
Applying online offers a high level of convenience, enabling you to initiate the loan application process from anywhere and at any time.
This flexibility eliminates the need to physically visit a bank or financial institution.
b. In-Person
In contrast, in-person personal loan applications require scheduling an appointment, commuting to a physical branch, and dedicating time to fill out paperwork, which may not align with your schedule.
However, it’s worth noting that not every bank requires a face-to-face meeting with a banker for the application process.
Some banks facilitate entirely remote applications, where documents can be emailed to the banker, and the entire process from application to disbursement can be completed without physical interaction.
This streamlined process often involves online document submission, waiting for processing, and online agreement signing with voice recording. Funds can be disbursed within one to two days.
2. Speed
a. Online
Online loan applications tend to be faster, as you can receive an instant approval decision in many cases.
Additionally, funds can be disbursed to your account on the same day or the next business day, resulting in seamless access.
b. In-Person
Applying for a loan in person, however, involves waiting for a loan officer to review your application and documents.
The processing time typically ranges from one to five working days, depending on the completeness and accuracy of your documents.
3. Personalisation
a. Online
Online applications may lack a personal touch as you primarily interact with a website or app and communicate with customer service through digital means such as phone, email, or chat.
b. In-Person
Applying in person offers a personalised experience, as you can discuss your financial situation, ask questions, and negotiate terms directly with a loan officer.
This can lead to better loan options, especially if you have an existing relationship with the financial institution.
Experienced loan officers understand how to fill out the information accurately and know which documents are best to submit to the bank.
Also, they can identify any inappropriate language or discrepancies in bank statements.
Additionally, they are aware that certain transactions in EPF records may not be advantageous for your loan application. This expertise can significantly impact the success of your loan application.
4. Cost
a. Online
Online loan providers may offer lower interest rates, fewer fees, and reduced charges compared to traditional banks and credit unions. Furthermore, they frequently provide more flexible repayment terms and options.
It’s important to note that even if the loan application is facilitated through platforms like RinggitPlus, banks still need to provide commission to the platform and the banker involved.
Similarly, there are marketing costs and banker commissions involved in these transactions.
b. In-Person
Applying for a loan in person can be more expensive, as some traditional banks may impose higher interest rates, fees, and charges.
The interest rate offered by traditional banks is largely dependent on the client’s profile, primarily focusing on the risk associated with loan repayment.
Higher-risk clients are often charged higher interest rates, while lower-risk clients may enjoy lower rates. What’s more, traditional banks typically have stricter repayment terms and conditions.
Read More: What Are the Best Alternatives to Personal Loans in Malaysia
When to Apply for Personal Loan In-Person in Malaysia
Clients who prioritise loan approval should consider working with a banker or loan agency. This is because online systems simply follow standard procedures and provide only a yes or no response.
Other important reasons to choose to apply for a personal loan in person are:
1. Personalised Assistance for New Applicants
If you’re unfamiliar with the intricacies of personal loan applications or have questions about the requirements and terms, visiting a financial institution in person can provide you with step-by-step guidance.
2. Proximity to Financial Institution
When you live in close proximity to your chosen financial institution, applying in person can be a practical option.
Being physically near the branch makes it convenient for you to visit and interact with the loan officers as needed.
3. Specific Issues or Complex Situations
If you have specific financial issues or complex circumstances, seeking assistance from a loan agency or visiting a financial institution in person is advisable.
Some situations that warrant in-person application include:
- A history of late payments
- High financial commitments
- Negative credit history (Note: Bluebricks does not serve individuals with legal cases or summons)
When to Apply for Personal Loan Online in Malaysia
Applying for a personal loan online in Malaysia is recommended if:
Your CTOS score is above 680.
- Your Debt Service Ratio (DSR) (with the new personal loan instalment) is no more than 60%.
- You have been employed for over one year.
- You are not a contract staff.
- You are not working as a freelancer.
Other instances include:
1. Simplicity and Speed
If you value a streamlined and efficient process, applying online is a favourable option.
The digital nature of online applications often means fewer forms to fill out and less paperwork to manage, making the process quicker and more straightforward.
2. Comfort with Online Platforms
Online loan applications are well-suited for individuals who are comfortable using digital platforms.
If you have experience with online banking or financial services, you may find the online application process intuitive and convenient.
3. Convenience and Accessibility
Moreover, you can initiate the application from the comfort of your own home or any location with internet access.
This accessibility eliminates the need for physical visits to a bank or financial institution, saving you time and effort.
Read More: Should You Use Your EPF Saving to Apply for a Personal Loan?
Bluebricks’ Loan and Consultancy Services
In the context of deciding between in-person and online personal loan applications in Malaysia, it’s pivotal to understand the factors that can influence your choice.
As a reliable bank loan and debt consolidation agency in Malaysia, we are ready to assist you with your personal loan application, regardless of how you choose to apply.
We offer an extensive range of loan services, such as:
- Personal loan services
- SME loan services
- Mortgage loan services (for buying a new home, refinancing and cashback purposes)
- Collateral loan services
Moreover, we offer customised consultation solutions crafted to suit your specific financial situation, such as:
- 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).
