Best Personal Loans

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Best Personal Loans In Malaysia 2025: Compare & Apply!
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We found 53 personal loan(s) for you!

Islamic Financing Fast Approval Low Income

Alliance Islamic Bank CashVantage Personal Financing-i

You Pay
/mth
Profit Rate
% p.a.
Max. Financing Amount
RM 200,000
Total Payment
    Islamic Financing Debt Consolidation

    Al Rajhi Bank Personal Financing-i

    You Pay
    /mth
    Profit Rate
    % p.a.
    Max. Financing Amount
    RM 200,000
    Total Payment
      Fast Approval Low Income Featured

      Alliance Bank CashFirst Personal Loan

      You Pay
      /mth
      Interest Rate
      % p.a.
      Max. Loan Amount
      RM 200,000
      Total Repayment
        Fast Approval Low Income Debt Consolidation Featured

        RHB Personal Financing

        You Pay
        /mth
        Interest Rate
        % p.a.
        Max. Loan Amount
        RM 150,000
        Total Repayment
          Islamic Financing Debt Consolidation Featured

          RHB Islamic Personal Financing-i

          You Pay
          /mth
          Profit Rate
          % p.a.
          Max. Financing Amount
          RM 150,000
          Total Payment
            Islamic Financing Government Servant

            CBP Personal Financing-i Al Yasser

            You Pay
            /mth
            Profit Rate
            % p.a.
            Max. Financing Amount
            RM 400,000
            Total Payment
              Islamic Financing Government Servant

              Maybank Salary Financing-i

              You Pay
              /mth
              Profit Rate
              % p.a.
              Max. Financing Amount
              RM 400,000
              Total Payment

                Maybank Education Financing/-i

                You Pay
                /mth
                Interest Rate
                % p.a.
                Max. Financing Amount
                RM 400,000
                Total Repayment
                  Islamic Financing

                  MD Personal Financing/-i

                  You Pay
                  /mth
                  Profit Rate
                  % p.a.
                  Max. Financing Amount
                  RM 50,000
                  Total Payment
                    Debt Consolidation

                    Fintos Debt Advisory and Consolidation Services

                    You Pay
                    /mth
                    Interest Rate
                    % p.a.
                    Max. Loan Amount
                    RM 500,000
                    Total Repayment
                      Islamic Financing Low Income Government Servant

                      RHB Personal Financing-i For Civil Sector

                      You Pay
                      /mth
                      Profit Rate
                      % p.a.
                      Max. Financing Amount
                      RM 300,000
                      Total Payment
                        Islamic Financing Low Income Government Servant

                        RHB Islamic Bank Pensioner Personal Financing-i

                        You Pay
                        /mth
                        Profit Rate
                        % p.a.
                        Max. Financing Amount
                        RM 100,000
                        Total Payment
                          Islamic Financing Low Income Government Servant

                          KOPUTRI Cooperative Personal Financing

                          You Pay
                          /mth
                          Profit Rate
                          % p.a.
                          Max. Financing Amount
                          RM 100,000
                          Total Payment
                            Government Servant

                            MCCM Resources Ambank Islamic Personal Financing

                            You Pay
                            /mth
                            Interest Rate
                            % p.a.
                            Max. Loan Amount
                            RM 200,000
                            Total Repayment
                              Islamic Financing Low Income Government Servant

                              MCCM Resources Public Islamic Bank Personal Financing

                              You Pay
                              /mth
                              Profit Rate
                              % p.a.
                              Max. Financing Amount
                              RM 150,000
                              Total Payment
                                Low Income Government Servant

                                KOBETA Cooperative Personal Financing

                                You Pay
                                /mth
                                Interest Rate
                                % p.a.
                                Max. Loan Amount
                                RM 250,000
                                Total Repayment
                                  Fast Approval Low Income Government Servant

                                  YYP Personal Financing

                                  You Pay
                                  /mth
                                  Interest Rate
                                  % p.a.
                                  Max. Loan Amount
                                  RM 300,000
                                  Total Repayment
                                    Islamic Financing Fast Approval Low Income Government Servant

                                    YIR Personal Financing

                                    You Pay
                                    /mth
                                    Profit Rate
                                    % p.a.
                                    Max. Financing Amount
                                    RM 300,000
                                    Total Payment
                                      Islamic Financing Low Income

                                      HSBC Amanah Personal Financing-i

                                      You Pay
                                      /mth
                                      Profit Rate
                                      % p.a.
                                      Max. Financing Amount
                                      RM 250,000
                                      Total Payment
                                        Islamic Financing Low Income

                                        Hong Leong Islamic Personal Financing-i

                                        You Pay
                                        /mth
                                        Profit Rate
                                        % p.a.
                                        Max. Financing Amount
                                        RM 150,000
                                        Total Payment
                                          Low Income

                                          Hong Leong Personal Loan

                                          You Pay
                                          /mth
                                          Interest Rate
                                          % p.a.
                                          Max. Loan Amount
                                          RM 250,000
                                          Total Repayment
                                            Islamic Financing Fast Approval Low Income

                                            Maybank Islamic Personal Financing-i

                                            You Pay
                                            /mth
                                            Profit Rate
                                            % p.a.
                                            Max. Financing Amount
                                            RM 100,000
                                            Total Payment
                                              Islamic Financing Low Income

                                              Bank Rakyat Personal Financing-i Private Sector

                                              You Pay
                                              /mth
                                              Profit Rate
                                              % p.a.
                                              Max. Financing Amount
                                              RM 400,000
                                              Total Payment
                                                Islamic Financing Low Income

                                                AmBank Islamic Personal Financing-i

                                                You Pay
                                                /mth
                                                Profit Rate
                                                % p.a.
                                                Max. Financing Amount
                                                RM 200,000
                                                Total Payment
                                                  Islamic Financing Low Income Government Servant

                                                  AmBank Islamic AmMoneyLine Facility-i

                                                  You Pay
                                                  /mth
                                                  Profit Rate
                                                  % p.a.
                                                  Max. Financing Amount
                                                  RM 100,000
                                                  Total Payment
                                                    Low Income

                                                    CIMB Bank Cash Plus Personal Loan

                                                    You Pay
                                                    /mth
                                                    Interest Rate
                                                    % p.a.
                                                    Max. Loan Amount
                                                    RM 100,000
                                                    Total Repayment
                                                      Islamic Financing Low Income Government Servant

                                                      Agrobank AgroCash-i

                                                      You Pay
                                                      /mth
                                                      Profit Rate
                                                      % p.a.
                                                      Max. Financing Amount
                                                      RM 250,000
                                                      Total Payment
                                                        Islamic Financing Fast Approval Government Servant

                                                        MBSB Mumtaz-i

                                                        You Pay
                                                        /mth
                                                        Profit Rate
                                                        % p.a.
                                                        Max. Financing Amount
                                                        RM 250,000
                                                        Total Payment
                                                          Islamic Financing Fast Approval Government Servant

                                                          MBSB Afdhal-i

                                                          You Pay
                                                          /mth
                                                          Profit Rate
                                                          % p.a.
                                                          Max. Financing Amount
                                                          RM 400,000
                                                          Total Payment
                                                            Fast Approval Low Income

                                                            Cashwagon Personal Loan

                                                            You Pay
                                                            /mth
                                                            Interest Rate
                                                            % p.a.
                                                            Max. Loan Amount
                                                            RM 2,000
                                                            Total Repayment
                                                              Islamic Financing Low Income Government Servant

                                                              BSN MyRinggit (Public Sector)

                                                              You Pay
                                                              /mth
                                                              Profit Rate
                                                              % p.a.
                                                              Max. Financing Amount
                                                              RM 400,000
                                                              Total Payment
                                                                Islamic Financing

                                                                BSN MyRinggit-i (Eksekutif 1)

                                                                You Pay
                                                                /mth
                                                                Profit Rate
                                                                % p.a.
                                                                Max. Financing Amount
                                                                RM 200,000
                                                                Total Payment
                                                                  Islamic Financing Fast Approval

                                                                  MBSB Private Sector-i

                                                                  You Pay
                                                                  /mth
                                                                  Profit Rate
                                                                  % p.a.
                                                                  Max. Financing Amount
                                                                  RM 300,000
                                                                  Total Payment
                                                                    Islamic Financing Low Income Government Servant

                                                                    UKHWAH Cooperative Personal Financing

                                                                    You Pay
                                                                    /mth
                                                                    Profit Rate
                                                                    % p.a.
                                                                    Max. Financing Amount
                                                                    RM 200,000
                                                                    Total Payment
                                                                      Fast Approval Low Income

                                                                      instaDuit Personal Loan

                                                                      You Pay
                                                                      /mth
                                                                      Interest Rate
                                                                      % p.a.
                                                                      Max. Loan Amount
                                                                      RM 10,000
                                                                      Total Repayment
                                                                        Islamic Financing Low Income Government Servant

                                                                        Public Islamic Bank BAE Personal Financing-i

                                                                        You Pay
                                                                        /mth
                                                                        Profit Rate
                                                                        % p.a.
                                                                        Max. Financing Amount
                                                                        RM 150,000
                                                                        Total Payment
                                                                          Islamic Financing Low Income

                                                                          Bank Rakyat Personal Financing-i Public Sector

                                                                          You Pay
                                                                          /mth
                                                                          Profit Rate
                                                                          % p.a.
                                                                          Max. Financing Amount
                                                                          RM 200,000
                                                                          Total Payment
                                                                            Islamic Financing

                                                                            Kuwait Finance House Personal Financing-i

                                                                            You Pay
                                                                            /mth
                                                                            Profit Rate
                                                                            % p.a.
                                                                            Max. Financing Amount
                                                                            RM 250,000
                                                                            Total Payment
                                                                              Islamic Financing Fast Approval Low Income

                                                                              AEON i-Cash Personal Financing

                                                                              You Pay
                                                                              /mth
                                                                              Profit Rate
                                                                              % p.a.
                                                                              Max. Financing Amount
                                                                              RM 100,000
                                                                              Total Payment
                                                                                Islamic Financing

                                                                                Bank Islam Personal Financing-i (Non-Package)

                                                                                You Pay
                                                                                /mth
                                                                                Profit Rate
                                                                                % p.a.
                                                                                Max. Financing Amount
                                                                                RM 300,000
                                                                                Total Payment
                                                                                  Islamic Financing Low Income Government Servant

                                                                                  Bank Islam Personal Financing-i (Package)

                                                                                  You Pay
                                                                                  /mth
                                                                                  Profit Rate
                                                                                  % p.a.
                                                                                  Max. Financing Amount
                                                                                  RM 300,000
                                                                                  Total Payment
                                                                                    Low Income

                                                                                    UOB Personal Loan

                                                                                    You Pay
                                                                                    /mth
                                                                                    Interest Rate
                                                                                    % p.a.
                                                                                    Max. Loan Amount
                                                                                    RM 100,000
                                                                                    Total Repayment
                                                                                      Fast Approval Low Income

                                                                                      Maybank Personal Loan

                                                                                      You Pay
                                                                                      /mth
                                                                                      Interest Rate
                                                                                      % p.a.
                                                                                      Max. Loan Amount
                                                                                      RM 100,000
                                                                                      Total Repayment
                                                                                        Islamic Financing Government Servant

                                                                                        BSN MyRinggit-i (Postgraduate)

                                                                                        You Pay
                                                                                        /mth
                                                                                        Profit Rate
                                                                                        % p.a.
                                                                                        Max. Financing Amount
                                                                                        RM 50,000
                                                                                        Total Payment
                                                                                          Islamic Financing

                                                                                          BSN MyRinggit-i (Professional)

                                                                                          You Pay
                                                                                          /mth
                                                                                          Profit Rate
                                                                                          % p.a.
                                                                                          Max. Financing Amount
                                                                                          RM 400,000
                                                                                          Total Payment
                                                                                            Islamic Financing

                                                                                            BSN MyRinggit-i (Financial Institution Employee (FIE)

                                                                                            You Pay
                                                                                            /mth
                                                                                            Profit Rate
                                                                                            % p.a.
                                                                                            Max. Financing Amount
                                                                                            RM 250,000
                                                                                            Total Payment
                                                                                              Islamic Financing

                                                                                              BSN MyRinggit-i (Perintis)

                                                                                              You Pay
                                                                                              /mth
                                                                                              Profit Rate
                                                                                              % p.a.
                                                                                              Max. Financing Amount
                                                                                              RM 50,000
                                                                                              Total Payment
                                                                                                Islamic Financing

                                                                                                BSN MyRinggit-i (Hajj, Umrah & Pilgrimage)

                                                                                                You Pay
                                                                                                /mth
                                                                                                Profit Rate
                                                                                                % p.a.
                                                                                                Max. Financing Amount
                                                                                                RM 400,000
                                                                                                Total Payment

                                                                                                  Bank Islam Personal Financing (Professional Program)

                                                                                                  You Pay
                                                                                                  /mth
                                                                                                  Interest Rate
                                                                                                  % p.a.
                                                                                                  Max. Loan Amount
                                                                                                  RM 300,000
                                                                                                  Total Repayment
                                                                                                    Fast Approval Low Income

                                                                                                    Tambadana Fast Cash Loan

                                                                                                    You Pay
                                                                                                    /mth
                                                                                                    Interest Rate
                                                                                                    % p.a.
                                                                                                    Max. Loan Amount
                                                                                                    RM 10,000
                                                                                                    Total Repayment
                                                                                                      Fast Approval Low Income

                                                                                                      Regal Reign Personal Financing

                                                                                                      You Pay
                                                                                                      /mth
                                                                                                      Interest Rate
                                                                                                      % p.a.
                                                                                                      Max. Financing Amount
                                                                                                      RM 200,000
                                                                                                      Total Repayment
                                                                                                        Debt Consolidation

                                                                                                        STS Wealth Care Debt Restructure Services

                                                                                                        You Pay
                                                                                                        /mth
                                                                                                        Interest Rate
                                                                                                        % p.a.
                                                                                                        Max. Loan Amount
                                                                                                        RM 2,000,000
                                                                                                        Total Repayment
                                                                                                          Fast Approval Low Income Government Servant

                                                                                                          Emicro i-Financing

                                                                                                          You Pay
                                                                                                          /mth
                                                                                                          Interest Rate
                                                                                                          % p.a.
                                                                                                          Max. Financing Amount
                                                                                                          RM 10,000
                                                                                                          Total Repayment
                                                                                                            Last updated: Jun 3, 2025

                                                                                                            Other Personal Loan categories

                                                                                                            Still unsure about which product best suits you?

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                                                                                                            How do you apply for a personal loan online?

                                                                                                            Step 1 Image

                                                                                                            Step 1

                                                                                                            Explore our Suggest Me Personal Loan tool to identify the best personal loan based on your requirements and eligibility.

                                                                                                            Step 2 Image

                                                                                                            Step 2

                                                                                                            Select the best product that fits your requirements from the list of recommended personal loan products listed and click on the Apply button.

                                                                                                            Step 3 Image

                                                                                                            Step 3

                                                                                                            Fill in a form with your details to be submitted for application, and a representative from iMoney or the bank will call you to process the application.

                                                                                                            FAQs Personal Loans in Malaysia - FAQ

                                                                                                            Your short-term money needs can be met by applying for a personal loan. When you are faced with unplanned or emergency needs that require immediate funding, personal loans can help in these situations.

                                                                                                            There are instances where you should definitely consider getting a personal loan or an Islamic personal financing plan to help you maintain your finances better in the long run. For example, to help you manage your other financial commitments like credit card debts better with lower financing charges.

                                                                                                            Remember that personal loans are not cheap or always financially beneficial but they are good to help with quick emergency cash needs. Borrowers should remember that they have to pay off their loans with interest on time.

                                                                                                            • A personal loan is an unsecured loan you borrow from a bank. This means that you can borrow money from the bank without the bank asking for any collateral. However, you should still repay your personal loan on time to avoid late penalty charges or negative impact on your credit score. 

                                                                                                              A personal loan has a shorter repayment period compared to home loans. You are usually expected to fully repay your personal loan within 10 years. 

                                                                                                              Also, unlike home or car loans, you can get a personal loan without any specific purposes. You can get it for home improvements, start a business or even for medical emergencies. However, we do not recommend getting a personal loan without careful consideration.

                                                                                                            • There are two types of personal loans available: secured and unsecured loans.

                                                                                                              What are secured loans? 

                                                                                                              Secured loans are where you are required to offer an asset (e.g. car, house) as collateral in case you cannot repay your loan. 

                                                                                                              This means that the lender has a legal right to seize the asset you listed in the event you cannot repay your loan within the agreed repayment terms.

                                                                                                              Bigger loans like home loans may also require you to list a guarantor in case you fail to repay your loan.

                                                                                                              What are unsecured loans?

                                                                                                              Unsecured loans are loans where the lenders are not required to list any asset as a collateral. Instead, they will assess you’re your creditworthiness based on the following criteria among other factors before they decide if they want to lend you the money:  

                                                                                                              • Your employment status 
                                                                                                              • Your proof of income (at least 6 months)
                                                                                                              • Your credit score 

                                                                                                              These criteria will also determine how much you can borrow, your personal loan terms and interest rate. You can read about the types of personal loans and interest rates for more information.

                                                                                                            • Firstly, let’s find out what is a conventional loan: 

                                                                                                              A conventional loan follows conventional financing principles where lenders lend money to customers like you and earn profit from the interest you paid on your loan every month.

                                                                                                              What is an Islamic financing?

                                                                                                              An Islamic financing follows Shariah financing principles which prohibits Riba (interest-based transactions). Instead, it is based on the concept of earning through the sale of commodities which looks like this:

                                                                                                              • Deferred Payment: where you will repay the Bank of the Item's Selling Price on deferred basis through monthly payments.

                                                                                                              To find out more, you can read our article about Islamic property financing.

                                                                                                            • While there are many reasons to get a personal loan, we recommend that you apply for one which can help you generate a return or reduce your debt over time. Some good reasons for getting a personal loan include:

                                                                                                              • To better manage your debts through consolidation

                                                                                                                If you currently have a few outstanding debts – like other personal loans and credit card balances – consolidating your debts into one lower-interest personal loan will help you better manage your debts. Not only will you be able to lower your overall interest payments and fix a monthly repayment, you will also find it easier to manage just one repayment instead of multiple.

                                                                                                              • To improve your credit score

                                                                                                                Taking a personal loan and refinancing it on time shows a bank that you can be trusted with credit (a.k.a borrowed money). A good way to do so is to take a low-interest personal loan to pay off your credit card balance – this does not just save you money but can also improve your credit score if you make your repayments on time!

                                                                                                              • To pay for a medical emergency

                                                                                                                Your physical health should always be prioritized over your financial health. If you or your loved one does not have medical insurance when hit by an unexpected health emergency, taking a personal loan is one of the easiest solutions to access the medical treatment needed.

                                                                                                              Get more insight as you read our article about the right reasons to take a personal loan.

                                                                                                            • The best personal loan for you is one that meets your needs and will not financially burden you. Use our iMoney Personal Loan Calculator to find what you need.

                                                                                                            • It’s quick and simple:

                                                                                                              1. Use our personal loan calculator to tell us what you are looking for, your basic and employment info. We will then recommend you a list of personal loans that fit your needs and eligibility.
                                                                                                              2. Click “Apply” on the personal loan that you would like to apply for and fill out the application form (your basic and employment info).
                                                                                                              3. We’ll get in touch with you within 1 business day to help you process and submit your application.
                                                                                                              4. You will hear from the bank or provider on your application status.

                                                                                                            • iMoney provides you with the tools that you need to find the best personal loan for your situation. Our iMoney consultants will help guide you through the application process and even assist you in checking your eligibility requirements for your preferred loan.

                                                                                                              We offer:

                                                                                                              • Personal loan calculator

                                                                                                                A personal loan calculator to help you decide on how much you can afford to borrow. Our personal loan calculator helps you compare and find the best personal loans in Malaysia based on your needs and eligibility.

                                                                                                              • Friendly customer care agents

                                                                                                                Our friendly customer care agents will guide you through the borrowing process. They will call you to check your eligibility and recommend the right personal loan product with higher chances of approval. Our CCAs will also help you with your application after you have filled out your details.

                                                                                                              • Quick and easy online applications

                                                                                                                Apply from the convenience of your home. It's fast, free, and fully online (some banks may require you to visit a bank branch to verify your identity).

                                                                                                            • This depends on your employment status, income, and your credit score. The highest loan amount you can borrow through a personal loan in Malaysia is RM200,000, depending on the financial institutions. However, your salary also plays a part in determining the loan amount that you qualify for. As a rule of thumb, a borrower can typically borrow up to four times his/her monthly salary. Use our personal loan calculator to compare and apply for the personal loan which fits your needs and eligibility.

                                                                                                            • In general, there are three basic requirements for applying for a personal loan in Malaysia. These are:

                                                                                                              1. You must be between the ages of 18 and 65 years old.
                                                                                                              2. You must be a Malaysian citizen (some banks will make an exception if you apply in person).
                                                                                                              3. You must not be bankrupt.

                                                                                                            • The minimum salary requirement for a personal loan is determined by the lender and amount that you are looking to borrow. In general, you should have a salary of at least RM2,000 per month before applying for a personal loan.

                                                                                                            • You need to be at least 18 years old and below 60 years old. The age requirement may differ slightly from financial institution to financial institution. Use our personal loan calculator above to find which financial institution offers a personal loan that you are eligible for.

                                                                                                            • The documents needed to apply for a personal loan are:

                                                                                                              • A copy of your NRIC
                                                                                                              • Your salary slip
                                                                                                              • Your EPF statement

                                                                                                              You may also need other documents depending on your income status (salaried/self employed/commission).

                                                                                                            • The interest rate of a personal loan depends on several factors including your income, employment status, and credit score. Use our personal loan calculator to find the personal loan that best fits your needs and eligibility.

                                                                                                            • Flat Interest Rate Effective Interest Rate
                                                                                                              Interest payments are based on the initial original principal amount. Interest payments are based on the remaining outstanding principal, and are recalculated at the end of each month.
                                                                                                              You end up paying the same amount each month during the tenure of the loan. The amount you pay each month decreases across the tenure of the loan.

                                                                                                            • Interest rates are determined by lenders based on their Base Rate (BR) plus their declared margin. This number is called the Effective Lending Rate (ELR). For example, Maybank has a BR of 1.75% plus a margin of 1.50%; this means the interest rate that you are charged is 3.25%.

                                                                                                              Interest rates are expressed as Annual Percentage Rates (APR). This means that the interest is calculated for the whole year instead of a monthly basis. To get the monthly interest rate, just divide the APR by 12 months.

                                                                                                              Visit our Learning Centre for more information on how the Base Rate works.

                                                                                                            • The iMoney Personal Loan Calculator is designed to match you with the most suitable loan for your financial needs. It takes into account your salary (which will determine how much you are able to borrow), the type of loan you want, and amount you want to borrow.

                                                                                                              You can also use the calculator to adjust the amount of time you will need to pay the loan back to get an idea of how much the monthly payments you can afford.

                                                                                                            • The approval process can be as fast as 48 hours to a few days, depending on the bank or loan provider. Check out our list of fast approval loans which can process your application and disburse the loan to you within 48 hours.

                                                                                                            • You can expect to pay a one time stamp duty fee, in addition to any other bank charges, when you take a personal loan. Additionally, you may have to pay an early settlement fee if you decide to pay off your loan early.

                                                                                                              You will NOT be asked to pay any fees or charges when applying for a loan.

                                                                                                            • No, there are no upfront fees required to apply for a personal loan or to process your application in Malaysia. iMoney services are completely free to its customers. Do contact the authorities if you have been asked by anybody to pay such fees. Be informed and read our article about loan scams in Malaysia.

                                                                                                            • There are a number of factors that affect your chances of being approved for a loan. These include:

                                                                                                              1. Your history of paying bills and other loans
                                                                                                              2. The types of other loans and credit cards that you own
                                                                                                              3. The length of your credit history
                                                                                                              4. The number of loan applications that you have made over the last 12 months
                                                                                                              5. Any legal action that has been taken against you

                                                                                                              All of these factors are calculated as part of your credit score. To learn more, read our article on everything you need to know about your credit score.

                                                                                                            • As we are unable to process personal loan applications for expats, we advise you to visit a bank branch to apply. However, you can apply for certain credit cards with us. Compare and apply for a credit card that best fits your needs and eligibility.

                                                                                                            • As most banks require some proof of income, getting a personal loan without a job can be difficult. Even if you get approved, the loan terms and interest rates you receive may not be the best as financial institutions tend to offer better terms and rates for customers with a good credit score and the employed.

                                                                                                            • The minimum age requirement for a personal loan in Malaysia is 18 years old. However, you will need to have a consistent stream of income in order to qualify for a loan. You are eligible to get a personal loan if you fulfill all the criteria below:

                                                                                                              • Aged 18 and above
                                                                                                              • Have an income slip for at least 6 months, with an employment letter

                                                                                                            • Yes it will. If you meet your monthly commitments without fail, a personal loan can improve your credit score. However, if you miss your monthly payments it may also have a negative impact on your credit score.

                                                                                                            • Yes, personal loans are suitable for debt consolidation.

                                                                                                            • Per annum (p.a.) Per annum means the interest rate will be charged annually. For example, if you are borrowing RM10,000 and your personal loan interest rate is 5% per annum, your annual interest will be RM500.
                                                                                                              Repayment / Instalment Your monthly repayment or instalment is the fixed amount you have to pay every month for your personal loan. The monthly repayment or instalment is fixed over your loan tenure, and it is made of your principal and interest repayments.
                                                                                                              Default

                                                                                                              If you stop paying your loan for more than 3 months, your loan will be in default, or you have defaulted your loan.

                                                                                                              A default loan will result in higher finance charges and it will also affect your credit score. Late payments will be recorded in your CCRIS, and you may find it difficult to apply for a credit product like a loan or credit card in the future, until the loan has been settled.

                                                                                                              Find out how your credit score is for free through iMoney CreditScore.
                                                                                                              Principal A principal is the loan amount borrowed that has not been repaid. Your monthly instalment is made up of your principal and interest charges.
                                                                                                              Collateral

                                                                                                              A collateral is an asset that you pledge as security for a loan. The asset can be in the form of a house, a car or even the shares that you are holding. With a collateral, you are basically saying to your bank, “I promise to pay you back. You can take my house/car/shares if I don’t.”

                                                                                                              If you don’t make your loan repayments, your bank can legally take your collateral and resell it to recover their losses.
                                                                                                              Guarantor

                                                                                                              A guarantor is someone who agrees to pay your loan if you don't pay your loan. In some cases, the financial institutions may require a guarantor for your loan to enhance your credit standing.

                                                                                                              Anyone can be a guarantor as long as the person can meet the legal

                                                                                                              requirements to be a guarantor, which are:

                                                                                                              • 18 years old or above
                                                                                                              • Not a bankrupt
                                                                                                              • Must be of sound mind
                                                                                                              • Must have agreed to being a guarantor
                                                                                                              Early Settlement Penalty

                                                                                                              You may be charged an Early Settlement Penalty if you pay off or settle your loan earlier than thespecified date on the loan agreement. This is usually estimated as a percentage of the initial loanamount.

                                                                                                              For example, you may be charged RM100 or 1% of your loan amount, or whichever is higher.
                                                                                                              Late Payment Charges

                                                                                                              This is the fee that the bank will charge you in the event you are not able to pay your loan in theagreed time schedule. For Islamic Financing, the borrower has to pay for this additional fee and itis fixed at the rate of 1% per annum or at the rate stated in the agreement for Conventional Loan.

                                                                                                              However, try to avoid this as much as possible, as it will negatively affect your credit score.
                                                                                                              Tenure

                                                                                                              Tenure is your loan repayment period. The longer your loan tenure is, the lower your monthly repayment will be, but also the higher your interest charges will come up to.

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