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.  

 

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