Perbandingan interest rate personal loan
Personal Loan Interest Rates in Malaysia 2022
Do I need to apply for a personal loan?Everyone has goals to achieve in their lives and a lot of times, they require money to kick start the journey. We can gain money from any means possible such as employment, selling of products or services, own savings, as well as loans. Show Some people are lucky enough to fund their goals with one or more combinations of the above methods. But, what about others who has limited options or whose limited options are not viable? Oftentimes, they shy away from the last option, which is loan. If we look at this objectively, applying for a personal loan is practical for several reasons:
Top personal loan for debt consolidationWhen you have multiple debts of different sizes, banks, due dates, tenures and interest rates, it can be a strenuous task to keep track with the repayments. A debt consolidation loan is great for simplifying multiple debts into a single facility. You can repay them at a lower interest rate and longer tenure to save on monthly installment and have more disposable income. [Updated: 26 January 2022] Before debt consolidation:
Total commitments: RM2,000/month After debt consolidation:
How much do you save after consolidating credit cards and personal loans debts into a single loan? RM2,000 – RM1,062.50 = RM937.50 ÷ RM2,000 x 100% = 47% Say you have a minimum monthly income of RM5,000, that means you are committing roughly 21% of your total monthly income to pay for your consolidated debts. Personal loan application journeyDuring a personal loan application, there are few things you need to consider such as the amount you can apply, the amount the bank can actually lend you, required documents and the places to apply for a personal loan. How much can I borrow?The typical loan amount you can borrow from banks is ranging from RM5,000 to RM200,000. This amount is also known as the principal amount. Once you have decided on your principal loan amount, you need to choose a tenure that suits your financial capacity. RinggitPlus has a personal loancalculator where you can calculate your monthly repayment easily by indicating your borrowing amount, monthly income and tenure of choice. However, this personal loan calculator does not take into account your other monthly commitments such as car loan, home loan, credit card, student loan etc, which the bank will also consider before approving your applied loan amount. To better manage your expectations (such as high loan margin, low interest rate, fast approval), you need to check if you can afford to pay your total monthly commitments by determining your debt-service ratio (DSR). How much can a bank loan me?DSR is a tool to measure your available cashflow after meeting your debt obligations. Banks use this calculation to see if you have enough money to pay your monthly installment via this formula:
There is a consensus on optimum DSR level to increase the chances of loan approval: your total monthly commitments should not exceed your total monthly income. In the example given above, the total loan commitments are 50% of total monthly income, which means a borrower is allocating half of his/her monthly income on debt servicing alone, with little room to save, spend and invest (if any). In this situation, the bank will usually reduce the loan amount to consequently reduce your DSR level. You can do your own DSR calculation prior to loan application to increase the chances of approval. What documents to prepare when applying for a personal loan?To speed up your loan application process, make sure you have compiled all of the required documents. The type of document will vary from bank to bank, depending on your employment type. All in all, you can find the general requirements in the table below:
Where can I apply for a personal loan?Two ways you can apply for personal loans in Malaysia: offline and online. On offline channels, you can walk into the bank’s branch of choice, speak to a loan officer, fill up the application form, present your documents and submit. Other way is by calling up the bank’s customer service contact center. This way, it gives you a more personalised service, although the downside is, you may not have the flexibility of time and money. On online channels, you can compare and apply for personal loans conveniently. You can also use some of the tools to find out your credit score, calculate loan affordability, download statements and many more – all at your fingertips. At RinggitPlus, we have a wide range of personal loans that can meet your needs with a fast and easy online loan application. Loan approval processThere are multiple ways banks can disburse the approved loan to you. Some banks require you to open a savings account with them, whereas others will pass you the cheque or do an IBG Transfer to your designated bank account. Bear in mind that your eligibility, credit history and credit score play major roles in determining your personal loan application approval. Am I eligible?To qualify for a personal loan application, you must first meet the eligibility criteria as set out by the bank, including but not limited to:
Tips: Your lifestyle is also a contributing factor to your loan approval. If the bank spots an inconsistency in your employment histories, salary and disposable incomes, and places of residence, you may not be a favourable borrower. What is a credit history?A credit history shows a record of your debt repayment, which indicates your ability to commit to loan repayment. By referencing to the Central Credit Reference Information System (CCRIS), banks can gain insight into your previous repayment habit. This credit report stores all your credit histories from all financial service providers in Malaysia for up to 12 months. What is a credit score?A credit score, on the other hand, is a 3-digit numerical rating that evaluates borrowers’ credit worthiness and is based on their credit histories. A good credit score can increase your chances of getting a loan approved with lower interest rates and faster loan approval. High credit score means you are favourable by the bank, whereas lower credit score means your application may not be favourable or get rejected. So how can you check your credit score? You can do so with CTOS Data Systems Sdn Bhd (CTOS) which is a privately-run credit agency that collects data from public sources and is also referenced by the banks when approving a personal loan. To give you a general idea on the credit score and what it means to lenders, do refer the table below!
Best case scenario – loan application is approved
Worst case scenario – loan application is rejected
Monthly commitmentThis is the most important stage after getting your personal loan approved. Your future loan applications, especially home loan, will be greatly affected if you don’t service your current debts properly. When is my personal loan monthly installment due date?Your first monthly installment payment will commence one month after receiving your approved loan into your bank account. As per your personal loan’s terms and conditions, your monthly installment due date can fall either on the first or in the middle of the month. If, at any time of the installment period, you are not able to commit to the full amount, you can pay a minimum amount as recommended by the bank. Doing so will save you from being penalised for late payment, however, attract finance charges between 15% - 18% p.a. on the remaining unpaid balances. What happens if I pay my personal loan installment late?Always strive to make full payment of your installment before or on the due date to avoid being penalised by the bank. That’s not all, your credit score will take a turn for the worse. Generally, all banks will impose a 1% fee, whereas non-banks will charge around 8% fee, calculated daily until you pay it off. For example:
In case you are on the verge of defaulting on your personal loan, you must immediately get in touch with the bank to discuss a possible recourse on your repayments. Alternatively, you can engage Agensi Kaunseling dan Pengurusan Kredit (AKPK), a debt management program by Bank Negara Malaysia that offers free services on money management, credit counselling and debt restructuring for individuals. Can I settle my personal loan outstanding balances off early?You have the option to settle off your outstanding loan balances before the end of tenure, subject to terms and conditions of your personal loan. Tips: A personal loan is usually calculated on a flat rate basis; therefore, a partial settlement is not advisable. If you have double paid your monthly installment for the month, the bank will deem it as an “Advance Payment”, which will not reduce your interest payment and the principal amount for the month. It is important that you inform the bank in written notice prior to your personal loan early settlement. An Early Settlement fee may or may not be charged, depending on the personal loan agreement. How to make my monthly installment payment?You have the flexibility to make your monthly installment payment in various channels such as follows:
Tips: Earn cashback on your interest payments when you make a prompt repayment every month throughout the tenure. Check out this top personal loan with cashback program:
Financial freedomAchieving financial freedom means you are no longer tied down with unmanageable debts. This comprehensive personal loan guides and tips intend to help you to make a sound financial decision and get your loan approved as you expected. At RinggitPlus, we understand your unique needs and worries when it comes to applying for a personal loan. You can navigate to our otheronline personal loan pages that are designed to meetyour income, affordability and preferences: >> Compare and apply Fast Approval loan >> Compare and apply personal loans for Low Income earners >> Compare and apply for personal loans with Low Interest Rate >> Compare and apply personal loans for Government/GLC employees >> Compare and apply for Shariah compliant Islamic loan >> Compare and apply for a secured loan When should you apply for a personal loan? The truth is, there is never a best time to apply for a personal loan when you are not prepared for it. In this article, you will find out the do’s and the don’ts of personal loan application based on experiences and best practices of ordinary Malaysians. Read on to learn what a personal loan is about, how can you apply for a personal loan at the lowest rate and highest amount, and what should you do after a loan is approved or rejected. Research stageAt this stage, you will uncover various answers to questions you might have about personal loans, and how you can use this information to make an informed decision. How does personalloan work?Put simply, a personal loan is a sum of money with interest lent by the bank to a borrower for a fixed period. The loan must be paid back in fixed amount installments, every month until the end of tenure. It is quite straightforward until you come acrosssome terms and jargons that you are not familiar with. Don’t worry, here are some commonly used terms to describe personal loans:
What type of personal loan should I apply?Now you have caught up with some of the personal loan basics, this is the time to answer the question of preferences. By doing a personal loan comparison, you can filter down the best personal loan to apply. The interest rate should not be the only factor when comparing personal loans, but your preferences too, such as: “What is the difference between secured and unsecured loan?” “Should I get a conventional or Islamic loan?” “Do I need a Takaful or Insurance coverage?”
Current Interest Rate on Personal LoansPlease note that additional GST will be charged on the applicable processing fee. How to Get Lowest Interest Rate on Personal Loan?If you are looking to apply for a personal loan, here are a few tips that will help you avail a lower rate of interest:
Among the various points that are mentioned above, the credit score of an applicant is one of the primary factors that is taken into account by banks and financial institutions to decide the interest rate. Make sure to check your credit score at the earliest to ensure that you are offered a favorable interest rate.
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