Securing Personal Loans In Malaysia
Before you can even consider making a personal loan comparison in Malaysia, one factor you need to attend to is your Credit Score. As you’re likely already aware, if you don’t have a good Credit Score and a decent credit history, many loan providers will be hesitant to take you on.
Breakdown of Credit Scores
As we’ve established, your Credit Score and credit history are essential to get an excellent personal loan interest rate. So, from the ground up, here are Credit Scores and what they mean to banks and financial institutions.
- 300 to 528 – Poor (Any personal loan application is likely to be rejected).
- 529 to 650 – Low (Getting a personal loan application approved will be possible but difficult).
- 651 to 696 – Fair (You have a relatively decent chance of securing personal loans in Malaysia).
- 697 to 717 – Good (You’re above average, so it’ll be easy to get good personal loans and credit cards).
- 718 to 743 – Very Good (You’re considered a prime customer and won’t have any trouble securing a personal loan).
- 744 to 850 – Excellent (You’re considered a very minimal loan risk and will be able to secure any loan you want, within reason quickly).
Other Factors That Affect Personal Loan Approval
Beyond credit history and Credit Scores, other variables that come into the mix are;
- Current Employment Status
- Debt Service Ratio
Now you know what to expect. The next step is to compare personal loan rates and find the most favorable one for you. Doing this is essential because it lets you know what the banks charge as interest for the loan and will influence the speed at which you repay the loan. To do this, access our Personal Loans Comparison tool, input the specifics of the loan you want to apply for, and wait a few seconds for our algorithms to pull up your search results. Because these types of loans aren’t secured, it’s relatively easier to get them. That being said, all personal loans are not the same. We will highlight some types of personal loans now.
Types Of Personal Loans In Malaysia
The Debt Consolidation Loan
This type of loan is used in personal finances to help individuals combine more than one existing loan under a single name.
The Fast-Approved Loan
This type of personal loan is usually released into your savings account as fast as 24 hours after application. It’s often used when people have urgent personal finances to attend to and don’t have the money to spare.
The Business Loan
First-time SME owners can use this loan to either set up or give their financial establishment a little boost.
The Housing Loan
As the name infers, these loans are often requested solely to attend to housing affairs. Pay a down payment on a new home or handle any fringe costs of moving into a new place.
Auto Repair Loan
Struggling to come up with cash for an auto repair or maintenance? With auto repair loan, you can send your vehicle for servicing, repair & more.
The Car Loan
These loans are used to attend to automobile issues. These can range from making a down payment on a vehicle to sorting several vehicle expenses.
Home Renovation Loan
Often leveraged to handle things like house repair and maintenance, these types of loans help individuals realize the vision of the kind of space they want.
Essential Documents Needed For Personal Loan Application
When getting a personal loan, there are certain documents that you have to tender, regardless of who the loan provider is. This paperwork includes;
- Your loan application form.
- A valid proof of your identity.
- Your guarantee of residence.
- A valid proof of age.
- Salary Slips (For salary earners) or Bank Statement (For Self-employed individuals).
Finding The Best Personal Loan Option For You
After comparing loan rates and finding the most suitable one for you, you must use our loan calculator to look into logistics like monthly repayment/monthly installment, personal loan interest rate, and other variables. With these factors out of the mix, you’ll be able to get the best loan terms for you in Malaysia!