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Best Personal Loans In Malaysia 2024
Do you need a quick loan comparison? Below is a list of some of the best bank and licensed lender loans for your reference.
| Bank/Licensed Lender | Interest/Profit Rate | Minimum Monthly Income |
Loan/Financing Amount |
Loan/Financing Period | Can Government/GLC Apply? |
|---|---|---|---|---|---|
| Alliance Bank | 4.99% – 15.28% p.a. | RM3,000 | RM5,000 – RM200,000 | 1 – 7 years | Yes |
| RHB | 3.59% – 13.76% p.a. | RM1,500 | RM5,000 – RM250,000 | 1 – 7 years | No |
| Al Rajhi Bank | 5.37% – 11.51% p.a. | RM5,000 | RM10,000 – RM250,000 | 1 – 8 years | Yes |
| CIMB | 4.38% – 19.88% p.a. | RM2,000 | RM2,000 – RM100,000 | 2 – 5 years | No |
| Standard Chartered | 7.50% p.a. | RM3,000 | RM3,000 – RM200,000 | 1 – 5 years | No |
| Adacash | 18.00% p.a. | RM1,000 | RM500 – RM1,000 | 1 month – 3 months | Yes |
| Tambadana | 18.00% p.a. | RM1,500 | RM1,000 – RM10,000 | 1 month – 1 year | Yes |
| First N Ever | 18.00% p.a. | RM4,000 | RM5,000 – RM100,000 | 6 months – 3 years | Yes |
| Evo Credit | 12.00% – 18.00% p.a. | RM3,500 | RM5,000 – RM400,000 | 2 months – 5 years | Yes |
| BSN | 6.00% – 8.50% p.a. | RM3,000 | RM5,000 – RM400,000 | 2 – 10 years | Yes |
| Maybank | 6.50% – 8.00% p.a. | RM3,500 | RM5,000 – RM100,000 | 2 – 6 years | Yes |
| KFH | 8.88% p.a. | RM3,000 | RM5,000 – RM150,000 | 2 – 8 years | No |
| Hong Leong Islamic Bank | 9.00% – 12.50% p.a. | RM2,000 | RM5,000 – RM150,000 | 2 – 5 years | No |
| JCL | 18.00% – 20.00% p.a. | RM1,000 | RM1,000 – RM50,000 | 6 months – 5 years | Yes |
| Bank Islam | 4.50% – 7.50% p.a. | RM4,000 | RM10,000 – RM300,000 | 1 – 10 years | No |
| MBSB Bank | 6.29% – 11.90% p.a. | RM5,000 | RM50,000 – RM300,000 | 3 – 10 years | Yes |
| AEON Credit Service | 7.92% – 18.00% p.a. | RM1,500 | RM1,000 – RM100,000 | 6 months – 7 years | Yes |
| HSBC Amanah | 4.88% – 10.50% p.a. | RM3,000 | RM6,000 – RM250,000 | 2 – 7 years | No |
| AmBank | 8.00% – 11.99% p.a. | RM3,000 | RM2,000 – RM150,000 | 1 – 5 years | Yes |
| Bank Rakyat | 7.66% – 10.22% p.a. | RM2,000 | RM5,000 – RM400,000 | 1 – 10 years | No |
| UOB | 9.99% – 11.99% p.a. | RM3,000 | RM5,000 – RM100,000 | 1 – 5 years | Yes |
Which bank is best for a personal loan?
RHB, Alliance BWhich bank is best for a personal loan?
RHB, Alliance Bank, and Al Rajhi Bank are among the best banks in Malaysia that offer loans with low rates and online applications.
If this is your first time applying for a personal loan or you just need some extra help in choosing one, we can help you through our loan recommendation service (it’s free!).
Now, you must be wondering when should you apply for a personal loan. The truth is, there is never the best time to apply for a personal loan when you are not prepared for it.
In this article, you will find out the dos and don’ts of a personal loan application based on the experiences and best practices of ordinary Malaysians.
Read on to learn what a personal loan is about, how can you apply for a personal loan at the lowest rate and highest amount, and what should you do after a loan is approved or rejected.
Research stage
At this stage, you will uncover various answers to questions you might have about personal loans, and how you can use this information to make an informed decision.
How does a personal loan workank, and Al Rajhi Bank are among the best banks in Malaysia that offer loans with low rates and online applications.
If this is your first time applying for a personal loan or you just need some extra help in choosing one, we can help you through our loan recommendation service (it’s free!).
Now, you must be wondering when should you apply for a personal loan. The truth is, there is never the best time to apply for a personal loan when you are not prepared for it.
In this article, you will find out the dos and don’ts of a personal loan application based on the experiences and best practices of ordinary Malaysians.
Read on to learn what a personal loan is about, how can you apply for a personal loan at the lowest rate and highest amount, and what should you do after a loan is approved or rejected.
Research stage
At this stage, you will uncover various answers to questions you might have about personal loans, and how you can use this information to make an informed decision.
How does a personal loan work?
A personal loan is a sum of money with interest lent by the bank to a borrower for a fixed period. The loan must be paid back in fixed amount instalments, every month until the end of tenure.
It is quite straightforward until you come across some terms and jargon that you are not familiar with.
Don’t worry, here are some commonly used terms to describe personal loans:
| Terms | Descriptions |
|---|---|
| Interest RateValue | The interest rate or profit rate is the amount (usually shown in a percentage form) that is charged on the loan amount by the bank to the borrowers for using its money.
It is the same concept as a deposit; you put money in a savings or current account, and the bank will pay you interest or profit for using your money. However, it is important to note that the interest rate of a loan is indicative, which means that your credit and financial background may influence the loan terms you will get. |
| Per Annum (p.a.) | The interest rate is charged on a per annum or year basis. If an RM10,000 loan is at 5% p.a. interest, the interest charge is RM500 per year.
For example, if the repayment tenure is stretched to 3 years, the interest will become RM1,500 (RM500 per year x 3 years). |
| Principal | It is the loan amount that you applied for. The interest rate will be calculated based on this amount and added on top of it. Going with the example above, the calculation should be:
Principal + Interest = Total Borrowing Amount (RM10,000 + 5% p.a. = RM10,500) |
| Tenure | This refers to the loan repayment period and choosing the right tenure is important for your finances.
A shorter loan period comes with a higher monthly instalment amount, whereas a longer loan period comes with a higher interest rate. |
| Instalment | You need to pay back your loan every month until the end of your tenure.
The instalment amount is fixed, which is calculated on the total borrowing amount and then divided by the total number of months. |
| Penalty | This is a fee a bank will charge on your overdue amount for being late on your repayment. |
| Default | This is a term to describe an event of non-payment of a personal loan for over 3 months.
In this situation, the bank will usually impose a higher finance charge and/or take legal action against you. Under this circumstance, you will face difficulty in securing any loans in the future as a result of your poor credit score. Your repayment history will stay in the CCRIS database for up to 12 months. |
Before applying for a loan, these are some questions you should ask yourself.
How long will I need to pay off my loan?
Your loan tenure decides how many years you will need to pay off your loan. You’ll have to make payments for your loan every month until the end of your tenure.
Most banks provide repayment terms between 1 to 7 years. It is important to note that your monthly payments and interest rates will be affected by your chosen repayment period.
Here’s a calculation example of how the loan tenure will affect your monthly instalment.
| Period | Shorter (1 – 3 years) | Longer (4 – 10 years) |
|---|---|---|
| Interest Charge | Low RM10,000 x 5% x 1 year = RM500 |
High RM10,000 x 5% x 10 years = RM5,000 |
| Monthly Instalment | High RM10,500 ÷ 1 year = RM875 per month |
Low RM15,000 ÷ 10 years = RM125 per month |
How much interest will I have to pay?
Your interest rate depends on several factors, like your credit score, loan amount, and tenure.
To get the lowest interest rates, you’ll need to have a good or excellent credit score and choose the shortest repayment period possible.
However, you’ll need to bear in mind that the final interest rate of the loan will be decided by the bank.
What type of personal loan can I get?
Now you have caught up with some of the personal loan basics, this is the time to answer the question of preferences.
By doing a personal loan comparison, you can filter down the best personal loan to apply for.
The interest rate should not be the only factor when comparing personal loans, but your preferences too, such as:
“What is the difference between secured and unsecured loans?”
“Should I get a conventional or Islamic loan?”
“Do I need a Takaful or Insurance coverage?”
