The Best Personal Loan For 2018
Sticking to your financial resolutions, such as saving up for home renovations or even travelling, is a challenge if you’re continuously cash-strapped.
However, there are alternatives such as taking out a personal loan to help you push past your goals. It may sound scary, considering personal financing made up 14.9% of the country’s total household debts in the last quarter of 2016, but if you pick a loan that caters to your needs and repayment ability, it could cushion the pain of your monetary struggles.
Thus, we’ve put together a list of personal loans best suited to meet your aspirations.
Best personal loan for business expansion
The economic prospects are seemingly positive this year, as our gross domestic product (GDP) is estimated to grow up to 5.4% year-on-year. The Malaysian Institute of Economic Research revealed both consumers and producers of the private sector were driving the domestic demand.
Thus, business owners who have contemplated expanding their trade, should do so this year. Although some personal loans don’t allow self-employed individuals to apply, there are some in the market that do with a financing amount up to RM150,000. Alliance Bank CashFirst Personal Loan is one of the best choices you can consider.
Strength: If you can sustain a short loan tenure, you can enjoy low interest rates of 3.99% for the first year and 5.99% for 2 to 3 years, which means lower cost of borrowing. Furthermore, if you don’t have a salary slip to show for, you can present your six months bank statement as proof of your financial health. Additionally, the approval rate is within two days, so you won’t have to undergo long waits before you begin your planning.
Drawback: It only allows self-employed individuals who have been in the business for more than two years. Interest rates could also skyrocket to 14.38% (if loan tenure is more than four years). Moreover, the borrowable amount is 7 times more than your calculated gross income, so you must be raking in a substantial amount to qualify for the maximum amount.
Enjoy interest rates as low as 3.99%Get your loan approved within 2 days!
Best personal loan for housing renovations
If you have made a home purchase or have an old home you would like to spruce up, a personal loan can help with funding the contractor or other home maintenance work.
Renovating your home can also increase your property’s worth, which is beneficial if you are opting to sell it off within a few years.
Hence, pick a personal loan, such as Al Rajhi Bank Personal Financing-i, that won’t strain your budget in the long-term by opting for a longer tenure and a low interest rate so that it’s less costly.
Furthermore, the repayment amount will be less if your loan tenure is longer, which is why this loan is the best to furnish your home.
Strength: You can enjoy a fixed rate of 6.99% and up to 8 years loan tenure. Furthermore, financing amount is up to eight times of your salary, which means if you are earning 5,000, you can get up to RM40,000 for housing renovations!
Drawback: You must earn at least RM4,500 to qualify for the loan and work within the private sector. Also, if you have a bad credit reputation, you must settle all overdue payments before applying as there are no exceptions for applicants with a bad credit record.
Up to 8 years loan tenure with fixed rates!Financing up to 8x monthly salary or up to RM150,000
Best personal loan for debt consolidation
Last year, reports revealed the younger generation, aged between 25 and 44, were classified as bankrupt due to high debt commitments. Among the highest debt commitments were car loans (26.63%), personal loans (25.48%), housing loans (16.87%) and business loans (10.24%).
If you are among those with multiple obligations, you ease your burdens by consolidating your debts with a personal loan. Your best bet would be a personal loan, such as HSBC Amanah Personal Financing-i, with minimal to no upfront fee to cut back on cost, and a longer loan tenure for a lower repayment amount.
Strengths: You don’t need a guarantor or collateral to apply and there is a fixed profit rate of 8.75% per annum. Additionally, you save more money compared to other loans as there is no late payment fee or early settlement fee, as well as zero stamp duty or disbursement fees.
Drawback: To qualify for this loan, you need to be earning at least RM3,000 for existing customers and a minimum of RM5,000 if you are a new customer to the bank. Also, if you are a new customer, loan tenure is up to 5 years compared to existing customers who are allowed to borrow up to 7 years.
Up to 7 years loan tenure for existing customers!Enjoy financing amount up to RM150,000
Best personal loan for travelling
When life gives you lemons (like a tight income), look for alternatives to make it sweeter.
A Mastercard report stated an estimated 11.9million international outbound travel trips were recorded from Malaysia in 2016, and the amount is predicted to rise by 3.5% annually to 14.2 million trips by 2021.
If you are itching to join the wanderlusts, but your funds (or lack thereof) and other commitments keep you from doing so, you can turn to a personal loan to fulfil your vacation dreams. It’s best you pick one with a low minimal borrowing amount so you can cater your loan according to your budget like JCL Personal Loan.
Strength: You don’t have to worry about high upfront fees as you will only be charged a 0.5% stamp duty of the approved loan amount – there are no charges for disbursement or processing. The minimum age is as low as 18, and salary amount can be as low as RM1,000! Also, borrowing amount is as low as RM500, so, you can stick to your budget and avoid paying for a loan amount which is higher than what you need.
Drawback: Bear in mind that this is a non-bank lender and the interest rates can go up to 18% per annum for those applying without collateral. Additionally, you will also be charged 8% of your outstanding amount if you make a late payment.
Borrow as low as RM500 with low upfront fee!Applicable for those with minimum income as low as RM1,000
Best personal loan for financial emergencies
Sometimes unfortunate events can drain the life out of your bank account, which is why personal loans are your best bet in the event of an emergencies, such as an urgent medical procedure.
If you don’t have the facilities to meet the high cost of your emergency, such as not having insurance, a personal loan with a fast approval rate can provide the cash you so badly need without the usual lengthy procedure. RHB Easy Pinjaman Ekspres is great for this.
Strength: You can get approval and disbursement within 10 minutes at the RHB branch bank. The maximum borrowing amount is RM150,000 and the income requirement is as low as RM1,500.
Drawback: You must open a linked bank account and those with a bad credit record must settle their overdue payments to qualify. The interest rate could also go up to 14.52% per annum and there will also be a 1% charge for late payments.
Quick and fast approval on the spot!Financing amount up to RM150,000 with low income requirement as low as RM1,500
Apply online for your personal loan
If you are considering applying for a personal loan, you can avoid the inconvenience of visiting the bank branch and send in your application online instead.
Additionally, you can also further compare loans with our comparison table and leave your details so that our consultants can assist you with your loan application.
However, before you make the leap, here are three things you should consider before you hand over your documents.
- A good credit report – as we’ve mention in some drawbacks, some personal loans make no exceptions for those with overdue payments or a bad debt repayment record. It is advisable that you settle any overdue payments and stabilise your credit report before you send in your application, as any bad payments will be reflected in your CTOS, CCRIS or credit report.
- Make sure you have the means to sustain a loan – to avoid any extra charges, check your financial health and make sure you can sustain the loan itself. If you are planning to take a personal loan, set out a monthly budget and calculate within your means to ensure you have enough cash at the end of the month to pay the loan. Furthermore, some loans will impose a late payment fee if you do not pay on time.
- Speak to consultants – avoid applying on impulse and consult a professional regarding personal loans if you are still not sure of it. You must understand the decision you are making, which you can easily do by getting free advice from our experts via our personal loan page.