Loans in Malaysia

It is without doubt that one of the most well-known and popular financial products in the world today is personal loans and this is also a financial product which 95% of the banks in Malaysia offer their customers. Most of the personal loans offered in Malaysia does not require you to have a guarantor to sign any loan documents and neither will you be asked for any collateral from the banks to be deposited as security.

It really doesn’t matter if you need the money for a wedding, a really crazy vacation or if you need it for your personal medical reasons because personal loans enable you to get quick asses to cash without any hassle at all. This is one of the reason why personal loans have become so popular among people here in Malaysia. Personal loans cater to people of various income groups to suit their personal financial needs and to help ease their financial burdens in times of need. There are also special types of financial loans which are offered by the Islamic Banks in Malaysia which is based solely on the Sharia principles of Islamic Banking.

Interest Rates Of Personal Loans In Malaysia

Interest Rate – Anything between 3.5% and 13.8%
Processing Fees – No Processing Fee
Loan Tenure – Anything from 1 year to 10 years

Rates Of Personal Loans In Malaysia

Every bank in Malaysia offers a different interest rate to their clients and this is all depending on a particular bank and the loan schemes of which it offers. If you were to compare, you will realize that most loans which come from specific government sectors or prominent corporate finance houses come at a much cheaper rate than what is being offered by banks when it comes to personal loans.

The interest rates for personal loans in Malaysia can vary anywhere between 3.5% all the way up to 13.8%. While you might be wondering why there is a huge difference between the interest rate ranges, you should keep in mind that the higher the flexibility of the personal loan amount and the loan tenure, the higher your interest rate will be. Some rates differ from others as some banks offer a flat interest rate while others may offer a compounding rate of interest.

Would You Need A Guarantor?

When it comes to personal loans, most banks do not require you to have a guarantor as most personal loans schemes are unsecured in nature. There are some banks however that still require you to have a guarantor depending on the type of loan and the amount you need to borrow. Do take note that if you happen to be a guarantor, the responsibility of paying off the borrowed amount falls and you if the borrower is not able to service the loan.

You should be careful about being a guarantor and also finding a guarantor for yourself if you are in need of one because this can cause many complications later on. On another note, any applicant with a guarantor stands a higher chance of getting the personal loan compared to those who don’t have a guarantor.

How Eligible Are You?

As mentioned before, all banks have different requirements when it comes to personal loans and their eligibility standards however some of the most common requirements that most banks follow are as stated below.

  • You will need to be a Malaysian Citizen
  • You have to be at least above 18 or 21 years of age depending on the bank’s expectation
  • You would need to have a minimum salary of RM 3000 depending on the banks requirement
  • You need proof that you have a steady employment history
  • You need your identity card and your personal loan documentation
  • You might also need a guarantor if your borrowing amount exceeds the normal range


Below here is another list of documents which you will need to present to the banks when you are applying for a personal loan in Malaysia.

BSN personal loan

For Salaried Applicants:

IC Copy Both Front & Back
3 Months Of Your Current Salary Slips
Confirmation Letter By Your Current Employer
3 Months Of Your Current Salary Slips
Most Current B/BE/EA/EC Form With Tax Payment Receipts
3 Months Of Your Current Bank Statements
Most Current EPF Statement
For Self-Employed Applicants:

IC Copy Both Front & Back
Business Registration Certificate
6 Months Of Your Current Bank Statements
2 Years Of Your Current Financial Statements
Most Current B/BE/EA/EC Form With Tax Payment Receipts

A Quick Tip

While getting a personal might actually be a pretty simple task, you must remember that all banks carry out certain investigations about your financial status and if any banks do find out that you have bad credit ratings, there goes your chance of acquiring that personal loan you need. Never ever neglect this matter and always remember to pay off your bills on time and keeping a clean financial record.