Have you been wanting to plan your finances for quite some time? You can choose from a wide range of financial products that are available. Use these products wisely to enhance your funds as well as your complete lifestyle.
One of these financial products are personal loans. A personal loan is one of the simplest credit facilities as it does not ask for any collateral. In Malaysia, you can get your personal loan authorised in 10 minutes. You can use personal financing for consolidating your debts, for paying your education fees, for enhancing your living space, for buying a car, medical expenditures, and so on.
Before you buy a loan, we advise you to factor in all elements related to a credit facility as it isn’t pleasant to fall into a debt situation. Take a look at the following aspects when you are planning to purchase a personal loan in Malaysia:
- Financing rates: If you’re planning to buy a credit facility, always determine the financing rate as it is the most important element. You can know about each loan plan’s financing rate by comparing the different personal loan plans. A loan plan that gives you a lower financing rate as per your needs, is more likely to give you a low-cost loan.
- Loan tenure: The duration of your loan will affect your repayment. If your loan tenure is long, your monthly repayment will be low. However, the financing charges will be high in this case. According to Bank Negara Malaysia’s regulation, the highest loan tenure in Malaysia is 10 years for personal loans. Some of the banks that give the maximum tenure of up to 10 years are BSN, Bank Islam, Al Rajhi Bank, Bank Rakyat and MBSB.
- Loan application requirements: You need to make sure you meet the basic loan application needs so that your loan isn’t refused by the bank.
- Income and employment: If you belong to the lower income group, you need to be aware of all personal loan requirements. There are a few banks that need applicants to have a minimum income of RM3,000. Some banks also take your employers into consideration in their underwriting method.
- Age: Several personal loans permit loan applicants only from age 21 and above. Pembiayaan Peribadi-i Sektor Swasta is available for people from age 18 to 60 years during the repayment period.
- Citizenship: Most of the personal financing products in Malaysia are available only for Malaysian citizens.
Ensure that you meet the specific loan application standards to prevent loan denial as rejection of your application is generally recorded in your credit report.
You can also utilise EMI calculators to find out which loan is the best. It will help you compare various loans offered by different companies and choose the most appropriate one. All you need to do is key in your loan amount, the tenure, and the type of loan you want. The EMI calculator will display various results and you can take your pick. It will also show the interest rate for each loan which will help you know how much you need to repay every month to cover the full loan amount.