A personal loan is an unsecured loan borrowed from a bank, credit union or online lender that you can use for any reason you have. Please be informed that you do not need any form of collateral for an unsecured loan. The tenure of the said loan can go up from 1 to 10 years and will have a set interest rate for a set amount of time. Repayment wise, you will have to pay monthly instalments, which will include the principal amount and the interest rate that is added. For more information about personal loan, click here.
Personal loans are unsecured loans and are therefore not protected by any form of collateral, so if you happen to default on the loan, the lender is not able to automatically take your assets. Instead of having your property as a form of collateral to secure the loan, the bank looks at your creditworthiness and income. Meanwhile, a secured loan is protected with collateral (most of the time it is your property), it may have a lower interest rate but it can be riskier as you might lose your collateral if you are not able to make payments on time. However, if you would like to loan more than the bank approved, it may be possible to get a higher loan if you have collateral or a guarantor, but you need to check this in either the product disclosure sheet or terms & conditions or with a representative from the bank.
A conventional loan follows the Conventional Financing Principles where lenders lend to borrowers to make a profit from the interest charged on the principal amount. For property loans, the borrower pays interest on the outstanding principal amount. Interest rates can be fixed or based on a floating rate (e.g. BLR, KLIBOR).
An Islamic loan follows the Islamic Financing Principle which avoids interest-based transactions (Riba), and instead introduces the concept of buying something on the borrower’s behalf and selling it back to the borrower for a profit. In place of interest, a profit rate is defined in the contract. Like Conventional Financing, profit rates can be fixed or based on a floating rate (e.g. BFR). For more information about the difference between these loans, click here.
Interest rates in Malaysia are usually charged on a flat rate basis. The flat interest rate refers to the type where the interest is charged on the original amount, thus having nothing to do with what was paid initially. It depends on the lender what the interest rate is if you take a look at our calculator you can see which lender has the best interest rate for you. For more information on interest rates, click here.
It's possible but can be very hard to get a personal loan if you're unemployed because all the banks will request to provide proof of income. Usually, the best loan terms and rates are often reserved for customers with a good credit history, and for those in employment.
Generally, banks are reluctant to lend to students. This is because of several reasons: most students do not have a credit history yet so the bank does not know your history with repayments also there is no current income so there is no proof that the loan can be paid back on time and as they're unlikely to be employed any time soon so they may struggle to make repayments on time. To see which loans you can get as a student, click here.
A short-term loan is one which is scheduled to be repaid in less than a year and the interest rate for this type of loan will usually be higher than a long-term loan. However, at the end of the term, you pay less interest than the longer duration loans. This might be interesting when you need to finance minor temporary needs, therefore, it is scheduled to be paid back within several months, for example, if you have some cash flow issues.
There are several factors that decide how much you can borrow. The amount depends on the bank you are applying with but that’s not the only thing. Your salary and credit score are really important. But even if you have a high salary your application can still get rejected due to other existing debts or a poor payment record. For example, a late payment on a credit card debt. If you apply for multiple loans at once this can also result in a rejection because the bank might feel that you need money fast, this would be a risk for the bank. If your application is approved, it is not necessarily the amount you applied for, this can also be lower. You can talk with a representative from the bank if you are unhappy with the approved amount, to see where the issue is and to look at other options.
It is very easy to check your eligibility for an Islamic personal financing via Loanstreet! You can click here to apply.
It is very easy to check your eligibility for Government Personal Loans via Loanstreet! You can click here to apply.
We don't have a personal loan calculator, but we do have a comparison tool. When you go to the top of our personal loan page you can fill in a few of your details, and the comparison tool will filter which loans match your requirements.
When you are an expat it is not possible to apply for a personal loan. However you can apply for most creditcards on our website depending on the conditions of the bank. To see the credit cards we are offering, click here.
Just above the FAQ section there is a list with all the different kinds of personal loan that we offer. To apply, just choose the loan that you want and click on the green 'apply' button on the right
You can definitely refinance you personal loan but please take in account the possibility of expenses like application fees and early payment fees. When you choose to refinance your loan make sure that the potential savings not become diminished due to these expenses. For more information about refinancing your personal loan, click here .
The process of approval will usually take 1 - 2 weeks depending on the bank. RHB easy for example has an option for fast approval, which means your personal loan can be processed within 24 hours when you fill out more information.