How to Be Eligible for Personal Loan in Malaysia

 

Getting a personal loan in Malaysia is very convenient as compared to other types of loans like housing loan or car loan. In other words, it is the easiest accessible loan in Malaysia. Sometimes, your personal loan can be approved within a day. By getting a personal loan, you can do whatever that you prefer such as debt consolidation, house renovations or even holiday if you think it is important.  

No matter how convenient it can be in getting a personal loan, it can still be a tedious task in the beginning, whereby you need to invest quite a lot of time to visit all the banks available and talk to bankers in order to get advice. First and foremost, you need to know your eligibility in order to apply for a personal loan in Malaysia. Here are some advices for you to follow so that you stand a higher chance in eligibility for a personal loan.

It is advisable for you to check your financial records to make sure where you are in your financial status before applying for any personal loan. If your financial record is clean and good, that should not be a problem at all for you to proceed with a personal loan application. Bear in mind that one of the things that the bank will pay attention on is your credit record. If you have a history in frequently making late payments or missing repayments, these will affect your chances in getting your loan approved. Thus, having a good financial record will save you from a lot of unwanted outcomes. On the other hand, you are advised to improve your financial record if it is bad. This is crucial before you try to apply for any personal loan. Even though it is not a definite factor in rejecting or approving your loan, banks will still pay attention on it before making the final decision.

Another way to improve your eligibility in getting a personal loan is simply by being discipline. What does it mean by being discipline? Well, you must improve your credit record by making repayments on time without any delay at least for a period of six months or more prior to applying for a personal loan. This will definitely increase your chances for getting your loan approved if you used to have bad credit record. This is due to the fact that bank will look into your six months historical repayment record in order to determine your repayment trend, either late or on time. You will be in trouble in getting your personal loan approved if you are constantly late in your repayment to the bank or miss a few repayments. This bad repayment habit will lead you to higher chances of getting your personal loan rejected.      

For your information, banks are reluctant to offer personal loans to you if you do not have any credit history. This means that your chances in getting a personal loan approved is lower if you never owned any credit card before, never apply for mortgage loan or a hire purchase loan. Why is this so? This is because the banks are not confident as they do not have sufficient information to analyze and determine what kind of repayment person you are. Therefore, get involved in some kind of financial commitment prior to apply for a personal loan will increase your eligibility. It does not need to be a huge commitment like applying for a housing loan, instead you may simply apply for a credit card and use it for cashback purposes or even to earn reward points. At the same time, make your repayment on time so that you are proving yourself as having a good credit history.  

Different banks may have different set of criteria that determine your eligibility for a personal loan. The above will generally be a good guide so that you are able to evaluate yourself before applying for a personal loan with a particular bank.  

 

Mbsb Personal Loan

Malaysian Building Society Berhad, also known as MBSB is a financial body that has been in operation for more than 50 years in providing financial services to individuals residing in Malaysia. Despite that it is not a bank, MBSB was given exemption by the Malaysian Government to operate a finance based business that offers from saving accounts to student loans. It also does not need to operate under the central bank of Malaysia, Bank Negara Malaysia’s policy and instead, it is fully owned by EPF, Employee Provident Fund and the Malaysian Government. Since then, the MBSB company has long catered to the needs and requirements of Malaysia’s public servants by offering very competitive rates in their financial based products. The two personal loans packages that are offered by MBSB are MBSB Personal Financing-i Private and MBSB Mumtaz-i Public. Recently, employees working in the private sector are also able to apply for these personal loan packages offered by MBSB but with a price, higher interest rates. Both of these personal loans are also strictly compliant to the Islamic Syariah standards and instead of base rates are commonly used, MBSB uses the concept of ECOF-i, Current Islamic Effective of Fund to determine their interest rates.

 

MBSB Personal Financing-i

With a flat interest rate of ECOF-i + 4% which directly translates to 6.43% per annum with a maximum of 10 years as the repayment period, MBSB Personal Financing-i is a personal loan package is that specially designed for employees that are working in a selected list of private sectors, public listed companies and certified professionals. Due to its nature as an unsecured loan, there is no need for the loan applicant to provide neither a guarantor nor a collateral to apply for it. MBSB also promises a fast approval time for this personal loan package. The advantage of this personal loan package is it has a very high financing amount of up to a staggering RM300000 and its disadvantage is this package is only available to a selected list of companies.

 

MBSB Personal Financing-i Fees and Charges

While there is a penalty fee of 1% per annum of the outstanding amount for late repayments, there is no processing fee and hidden fees involved for the loan application. However, the loan applicant will have to pay 0.5% of the loan amount as a Government stamping duty fee and further charges may incur if you are also required to take the Takaful insurance coverage that is based on your total loan period and these service charges are subjected to GST charges. However, it is stated by MBSB that Takaful Insurance coverage is optional for this personal loan package. Although it is possible to settle the loan early, I would not recommend so as you will need to give a month’s notice to MBSB in writing and you will be charged an early termination fee.

 

Requirements

In order to eligible for MBSB Personal Financing-i personal loan, the loan applicant will also need to be a Malaysian citizen and be between 21 to 60 years old by the end of the loan tenure besides being an employee in the selected list of private sectors, public listed companies or certified professionals. Employees that are working in a selected list of Government Link Companies, Multinational Companies, and Private Education companies defined by MBSB are also eligible to apply and the minimum income required is a monthly gross income of RM3000. The required documents are photocopy of your MyKad for front and back, a copy of your latest three months’ salary slips and these salary slips must be certified by your employer or head of department, an employment confirmation letter with your full name, MyKad number, designation, employment status, stated salary and employment date from your employer and latest 6 months of your bank statements where your salary is debited in. The approval time will be quick but it will take a few business days for the processing time and then the funds will be transferred into your bank account. The loan repayment can then be made through over-the-counter in MBSB branches.

 

MBSB Mumtaz-i Public

With a flat attractive interest rate of just ECOF-i – 2.0 which directly translates to only 3.66% per annum with a maximum of 10 years as the repayment period, MBSB Mumtaz-i Public is a personal loan package is specially designed for Government servants only. Due to its nature as an unsecured loan, there is no need for the loan applicant to provide neither a guarantor nor a collateral to apply for it but the approval time may not be as fast when compared to the MBSB Personal Financing-I package and the maximum financing that is available is only RM250000, RM50000 lesser than the MBSB Personal Financing-i package.

 

MBSB Mumtaz-i Public Fees and Charges

While there is a penalty fee of 1% per annum of the outstanding amount for late repayments, there is no processing fee and hidden fees involved for the loan application. However, the loan applicant will have to pay 0.5% of the loan amount as a Government stamping duty fee and further charges may incur if you are also required to take the Takaful insurance coverage that is based on your total loan period and these service charges are subjected to GST charges. However, it is also stated by MBSB that Takaful Insurance coverage is optional for this personal loan package. Although it is possible to settle the loan early, I would not recommend  so as you will need to give a month’s notice to MBSB in writing and you will be charged an early termination fee.

 

Requirements

Apart from being a Government servant, the loan applicant will also need to be a Malaysian citizen and be between 21 to 60 years old by the end of the loan tenure in order to apply for this personal loan package. The required documents are a photocopy of your MyKad for front and back, 2 copies of your latest three months’ salary slips and these salary slips must be certified by your employer or head of department and latest 6 months of your bank statements where your salary is debited in. It will take a few business days for approval and processing time and then the funds will be transferred into your bank account and the loan repayment will be deducted from your monthly salary during each month.

Cimb Personal Loan

CIMB offers two types of personal loans packages which are CIMB Cash Plus and CIMB Xpress Cash Financing-i. Please read on to see what each personal loan package offers and determine the one that suits your needs.

 

CIMB Cash Plus

As a personal loan that is flexible with fast approval of within 24-hours and without the need of having a collateral or guarantor due to its nature as an unsecured loan, CIMB Cash Plus is a personal loan that offers up to 8 times of the loan applicant’s monthly gross salary as the borrowing margin. In addition, this personal loan package also comes inclusive with insurance coverage to cover for any emergency situations. It has a financing amount of up to as high as RM100K with a tenure of up to 5 years.

 

CIMB Cash Plus Interest Rates

The interest rates of CIMB Cash Plus personal loan can be summed up in the list below:

  • If your minimum annual income is RM24000 and you borrow anywhere from RM2000 to RM19000 with a loan repayment period of between 12 to 60 months, your interest rate is 14.66% per annum
  • If your minimum annual income is RM24000 and you borrow anywhere from RM20000 to RM49000 with a loan repayment period of between 12 to 60 months, your interest rate is 10.88% per annum
  • If your minimum annual income is RM24000 and you borrow anywhere from RM50000 to RM100000 with a loan repayment period of between 12 to 60 months, your interest rate is 8.2% per annum

 

CIMB Cash Plus Fees & Charges

From the list mentioned above, you can see that the rate of the interest ranges between 8.2% to 14.66% per annum depending on the amount that you are borrowing and the loan repayment period. While there is a penalty fee of 1% of the outstanding amount for late repayments, there is no processing fee and hidden fees involved for the loan application. However, the loan applicant will have to pay 0.5% of the loan amount as a Government stamping duty fee and further charges may incur if you are also required to take the Takaful insurance coverage that is based on your total loan period and these service charges are subjected to GST charges. It is also possible to pay off your CIMB Cash Plus loan amount early but I would suggest after the first year as the first year is still considered the lock-in period and you will need to pay an additional early termination fee of RM200 if you choose to do so. In general, the monthly repayment for the loan will be done by deducting from your monthly salary and the loan repayment will start from the first day of the month based on the date when you received the money.

Requirements

Before you start to apply for CIMB Cash Plus, make sure you have a photocopy of your MyKad for front and back, last three months of your payment slip or EPF statement and a bank statement that has last 3 months of salary credited ready if you are a full-time employee with a monthly salary. If you are self-employed, a photocopy of your MyKad for front and back, your business registration certificate, last 6 months of your bank account, your latest B form with proof that you have paid your taxes and latest 6 months of your commission statements will be needed if you are earning from commissions. You will also need to be between 18 years old to 58 years to qualify for the loan. Although this personal loan is marketed as a personal loan that has a fast approval of within 24-hours, CIMB may still take a few business days to process your loan application so be prepared for it if that happens. After that, the loan amount will be transferred to a CIMB bank account.

 

CIMB Xpress Cash Financing-i

As a personal loan that is flexible with a promise of fast approval within 24-hours and without the need of having a collateral or guarantor due to its nature as an unsecured loan and an Islamic loan that is strictly compliant according to the CIMB Syariah standards, CIMB Xpress Cash Financing-i is a personal loan that offers up to 10 times of the loan applicant’s monthly gross salary as the borrowing margin. In addition, this personal loan package also comes inclusive with insurance coverage to cover for any emergency situations. It has a financing amount of up to as high as RM50K with a tenure of up to 5 years. However, CIMB bank will run a check on your credit check when you apply for this personal loan package using your personal details and you will not be able to borrow up to 10 times of your monthly gross salary most of the time. Moreover, you will also need to provide a guarantor if you are planning to borrow an amount that is higher than RM5000.

 

CIMB Xpress Cash Financing-i

The interest rates of CIMB Xpress Cash Financing-i personal loan can be summed up as if your minimum annual income is RM9600 and you borrow anywhere from RM3000 to RM50000 with a loan repayment period of between 6 to 6 months, your interest rate is 24% per annum.

 

CIMB Xpress Cash Financing-i Fees & Charges

From the statement above, you can see that there is only one interest rate which is 24% per annum. While there is a penalty fee of 1% of the outstanding amount for late repayments, there is no processing fee and hidden fees involved for the loan application. However, the loan applicant will have to pay 0.5% of the loan amount as a Government stamping duty fee and further charges may incur if you are also required to take the Takaful insurance coverage that is based on your total loan period. It is also possible to pay off your CIMB Xpress Cash Financing-i loan amount early. In order to do so, you will need to give a month’s notice to the CIMB bank in writing before you make your final payment. In contrast to the CIMB Cash Plus personal loan where you need to pay an additional of RM200 as an early termination fee if you decide to pay off your loan within the first year which is the lock-in period, CIMB Xpress Cash Financing-i has no penalty for early repayments. In addition, you can even receive an ibra or rebate on the interest that is charged on the loan amount if your loan amount period still has a remaining of 6 months or more. The monthly repayment for the loan will be done by deducting from your monthly salary and the loan repayment will start from the first day of the month based on the date when you received the money.

 

Requirements

Before you start to apply for CIMB Xpress Cash Financing-i, make sure you have a photocopy of your MyKad for front and back, last three months of your payment slip or EPF statement from your employer and a bank statement that has last 3 months of salary credited ready if you are a full-time employee with monthly salary. If you are self-employed, your business registration certificate, last 6 months of your bank account, your latest BE form with proof that you paid your income taxes and last 3 months of your bank statements will be needed. You will also need to be between 21 years old to 60 years to qualify for the loan. Unlike CIMB Cash Plus where you might have to wait a few business days for CIMB to approve and process your loan in the worst case scenario, CIMB made a solid promise that you will receive your money within 24 hours in this CIMB Xpress Cash Financing-i personal loan package. After that, the loan amount will be transferred to a CIMB bank account.

 

Pinjaman Peribadi BSN

BSN Personal Loan

BSN Executive 1 Personal Loan is a personal loan that was only accessible by a handful of selected and exclusive public listed companies employees and professionals who were able to show proof of their qualifications. This personal loan is now available to the more people that fit the requirements and it allows a financing amount from RM10000 to RM200000 with a minimum of 2 years repayment period and up to a maximum of 10 years repayment period.

Being an unsecured type of loan, there is no need for the loan applicant to provide neither a collateral nor a guarantor but it is important for the loan applicant to keep in his or her mind that it is quite stringent for an unsecured loan to be approved by BSN. If your loan gets rejected, you can try applying for other personal loan packages offered by the bank. Upon the approval of this loan package, the applicant has to open either a BSN Giro or Giro-i account.

To make up for its strict requirements, the interest rates that are offered by BSN are considered attractive and competitively priced when you compared it to personal loan packages offered by other banks in Malaysia. It is also important to understand that 6.5% per annum interest rate translates to somewhere around 11.7% effective interest rates per annum.

 

BSN Executive 1 Personal Loan Interest Rates

The interest rates for BSN Executive 1 Personal Loan depends on several factors including monthly gross income, the loan tenure and the credit score of the borrower. The list below will give you a better understanding in this personal loan package interest rates:

  • If you have a monthly gross salary of RM3000 to RM5000, your interest rate is 8.5% per annum
  • If you have a monthly gross salary of RM5000 to RM10000, your interest rate is 7% per annum
  • If you have a monthly gross salary of more than RM10000, your interest rate is 6% per annum

It is also important to note that the minimum loan amount that you can apply starts at RM10000. If your loan amount is below that amount, you are not qualified for this personal loan package. In addition, you are only allowed to borrow up to 5 times of your monthly gross salary if your monthly gross salary is between RM3000 and RM5000 while you can borrow up to 7 times of your monthly gross salary if your monthly salary is between RM5000 to RM10000. Applicants with a monthly gross salary that exceeds RM10000 can borrow as high as up to 10 times of their monthly gross salary.

 

Requirements

Besides the requirements mentioned above for you to be eligible to apply for this personal loan package, you will also need to be an employee from a list of panel public listed companies selected by BSN, a Malaysian citizen and between 21 to 55 or 60 year old depending on the age of your retirement at the end of the loan tenure. On top of these strict requirements, you as the loan applicant is also required to have at least 3 years of working experience. Even though it was stated above that minimum monthly gross salary is RM3000, it is only applicable to full-time employees. Part-time and contract based workers need to have a minimum monthly gross salary of RM10000 to apply for this personal loan package.

 

BSN Executive 1 Personal Loan Fees and Charges

While there is a penalty fee of 1% per annum of the outstanding amount for late repayments that is calculated on the daily basis, there is no processing fee and hidden fees involved for the loan application. However, the loan applicant will have to pay 0.5% of the loan amount as a Government stamping duty fee and further charges may incur if you are also required to take the Takaful insurance coverage that is based on your total loan period and these service charges are subjected to GST charges. It is also possible to pay off your BSN Executive 1 Personal Loan amount early. In order to do so, you will need to give an advance notice to the BSN bank in writing before you make your final payment. There is no lock-in period hence no penalty fees will be charged for early settlements.

Requirements

Before you apply for this personal loan package, prepare a photocopy of your MyKad for front and back, the latest 3 months bank statements, the latest EPF statement and a confirmation letter with your full name, MyKad number, designation, employment status, stated salary and employment date from your employer.

 

List of Public Sectors Recognized By BSN

Please see below for the list of public sectors that are recognized by BSN for this BSN Executive 1 Personal Loan package:

  • PETRONAS Group of Companies
  • Private healthcare
  • Government Linked Company (GLC)
  • Private colleges are exclusively selected by BSN
  • Public listed companies that are found on the main board
  • Several professionals including lawyers, doctors, accountants, information technology experts along with the proof of their employment status and certifications

 

Conclusion

In conclusion, this BSN Executive 1 Personal Loan package is an ideal package to consider if you have a high income and work in a private sector or the listed public sectors that are recognized by BSN because you can enjoy higher financing amount with lower interest rates. The drawback of this personal loan package is it is only available to a selected number of people and the minimum requirement of RM3000 monthly gross income is considered to be very high in the market.

Personal Financing-I Bank Rakyat

Personal loan is a great tool for almost everyone to effectively manage their finances. It becomes extremely important when one requires a big amount of cash without the need to dig everything out from owns savings. Anyhow, everyone’s need for a personal loan is different. One can apply for a personal loan to buy property or even to pay off other attached loans. The purpose varies. Not only that variation but also the amount and nature of the loan. In the latter, some loans might offer a fixed rate of financing whereas some might offer a floating rate.  

No doubt, Islamic loans are consider the more famous product in the Islamic banking industry. There is a famous product from the Bank Rakyat called the Bank Rakyat Personal Financing-I Private Sector. There are few benefits of these loans including higher maximum tenures, easy repayments, affordable profit rates and availability of negotiable rates. All in all, the mentioned affordable profit rates depend on the applicant’s salary and the type of payment selected.

What are the basic criteria for you to be eligible to apply for a personal loan with Bank Rakyat? First of all, you must be 18 years old and above, but less than 60 years old. Another very basic criteria is that you must have a regular income, either you are working for an employer or you are the employer for yourself. In addition, you also need to earn more than the required minimum income. Take note that your personal loan amount eligibility with Bank Rakyat is based on some factors such as minimum income of RM1000 and maximum allowed loan is RM200,000. Bear in mind that any other installments’ loans will eventually lower down your eligibility. On the upside, there is no guarantor requirement.    

So, how can you increase your eligibility for the Bank Rakyat Personal Loan? One of the recommended ways which can help you is simply by paying off your credit card bills. Remember that paying the minimum amount every month will only prolong you to clear off the outstanding balance effectively. Another way is by choosing a longer tenure. You may choose up to 10 years.  

If you are eligible and interested in the Bank Rakyat personal loan, you may prepare all the necessary documentation such as copy of identity card, latest three months’ salary slip, latest three months bank statement account, employment confirmation letter or EA form. You may explore further with the help of the Bank Rakyat staffs.

Ximending Hotel

Ximendinghotels has recently redesigned a new website. The new site is user friendly while it allows user to browse the latest affordable hotel in Malaysia.

Taipei ,Taiwan Ximendinghotel, a hotel booking company has officially redesigned a new website and identity.

Ximendinghotel.com is inviting users to explore the website which is created based on new technology platform which is faster and user friendly. It offers a new user experience where the design is modern, clean and easy to navigate.

The search functionality allows user to search hotels based on category such as state and location. The newly designed website is also compatible with latest gadgets such as mobile phone and tablets. Users will also have the option to share listing details across various social networking platforms.

The new website now also has more listing coverage which extends beyond Malaysia to Singapore and Indonesia. Users will be able to browse through comprehensive list of value based hotels around the region.

According to Kathy Yuen, a Ximendinghotel co founder, the new website new design is aligned to the company’s vision to provide best service and comprehensive hotel listing to users. The company has also planned for more website improvements on the in near future.

About Ximendinghotel

Ximendinghotel is one of the best budget accommodation listing in Taiwan. Ximendinghotel has comprehensive list of hotels in various holiday destinations within Ximending. The company focuses on offering budget and value accommodation to users around the region.