Personal Loan

What is a Personal Loan?

A personal loan is a type of unsecured loan that allows individuals to borrow money from banks or financial institutions without requiring collateral (such as property or fixed assets). The borrower repays the loan in fixed monthly installments over a set period, usually between
1 to 10 years.

How Does a Personal Loan Work?

1. Loan Application – The borrower applies for a personal loan from a bank or financial institution.
2. Loan Approval – The lender evaluates the borrower’s income, credit score (CCRIS/CTOS), and debt service ratio (DSR) before approval.
3. Funds Disbursement – Once approved, the loan amount is disbursed to the borrower’s bank account.
4. Monthly Repayments – The borrower repays the loan in fixed monthly installments until the full amount (including interest) is paid off.

Key Features of a Personal Loan

• Unsecured Loan – No need to pledge assets (such as houses or cars).
• Fixed Interest Rate – The interest rate is usually fixed, making repayment amounts predictable.
• Flexible Loan Amount – Typically ranges from RM5,000 to RM300,000, depending on the borrower’s financial profile.
• Flexible Loan Tenure – Usually between 1 to 10 years, depending on the bank’s policy.
• Quick Approval & Disbursement – Some banks approve loans within 24-48 hours.

Types of Personal Loans

There are different types of personal loans based on the borrower’s needs:

1. Conventional Personal Loan
   - Offered by banks and financial institutions with fixed monthly repayments and fixed interest rates.
   - Best for individuals who need funds for debt consolidation, emergency expenses, or personal use.


2. Islamic Personal Financing
   - Based on Shariah-compliant principles (e.g., Murabaha, Tawarruq).
   - No interest (Riba) but instead follows a profit rate system.
   - Suitable for individuals who prefer Islamic banking products.


3. Debt Consolidation Loan
   - Specifically designed for combining multiple debts (credit cards, loans) into a single loan with a lower interest rate.
   - Helps borrowers manage their finances more efficiently.


4. Business Personal Loan
   - For self-employed individuals or small business owners who need capital for business expansion.
   - Usually requires strong financial records and proof of income.

Personal Loan Eligibility Requirements

• To qualify for a personal loan, borrowers typically need to meet these criteria:
• Age Requirement – 21 to 60 years old (varies by bank).
• Minimum Income – RM3,000 to RM5,000 per month, depending on the lender.
• Employment Status – Must be salaried employee, self-employed, or business owner.
• Debt Service Ratio (DSR) – Should not exceed 60% of monthly income to qualify for loan approval.
• Credit Score (CCRIS/CTOS) – A good credit record increases approval chances.
   

Advantages of a Personal Loan

• No Collateral Required – Unlike home or car loans, borrowers don’t need to pledge any assets.
• Fast Approval & Disbursement – Some lenders approve loans within 24-48 hours.
• Flexible Usage – Can be used for emergency expenses, home renovations, education, medical bills, or debt consolidation.
• Fixed Monthly Installments – Easy to budget since repayment amounts remain the same.

Disadvantages of a Personal Loan

• Higher Interest Rates – Compared to secured loans (e.g., home loans), personal loans typically have higher interest rates (6%–15%).
• Strict Eligibility Criteria – Approval depends on income, employment stability, and credit history.
• Potential Debt Risk – Borrowers must manage their repayments well to avoid financial difficulties.

Who Should Apply for a Personal Loan?

• Individuals with urgent financial needs (medical bills, home repairs, education, etc.).
• People looking to consolidate debts and reduce high-interest payments.
• Business owners who need extra capital for expansion.
• Salaried employees who need short-term financial assistance.

Common Questions (FAQ) of Personal Loan

1. Will applying for a personal loan affect my credit score?
   Yes. When you apply, the bank will check your CCRIS/CTOS report. A rejected application or late repayments can negatively impact your credit score.

2. How long does it take for loan approval?
   Approval time varies. Some banks process loans within 24-48 hours, while others take a few weeks.


3. Can I settle my personal loan early?
   Yes, but some banks charge early settlement fees (e.g., 1 -3 % of the outstanding balance). Always check the terms before applying.


4. What happens if I miss a payment?
   Missing payments can result in:
   - Late payment penalties
   - Higher overall interest costs
   - Negative impact on your credit score


5. What is the maximum amount I can borrow?
   It depends on:
   - Your income level
   - Your creditworthiness
   - The bank’s policies
   Most banks offer up to RM300,000, but it varies based on individual profiles.

ʲôǸ˴

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˴ʽ

1. – лڻύ롣

2. – иݽ˵**롢֣CCRIS/CTOSծʣDSR**Ƿ׼

3. ʽ𷢷 – нʽת˻

4. » – ÿ°ʱֱȫ壨Ϣ

˴ص

• Ѻ – 跿����

• ̶ – Ϣͨǹ̶ģÿ»䶯

• – һ RM5,000 RM300,000 ֮䣨ӽ�����

• ޵ – ޿ѡ 1 10 ꣬ݽ˵Ļ

• – п 24-48 Сʱ ˴

˴

ݽ˵󣬸˴ԷΪ¼֣

1. ͳ˴Conventional Personal Loan
   - лڻṩù̶+̶¹ģʽ
   - ծϡʽװޡҽ;

2. ˹ʣIslamic Personal Financing
   - ѭ˹ԭ MurabahaTawarruq
   - ûдͳϢRibaǻʣProfit Rate
   - ʺϣѡ˹ڲƷĿͻ

3. ծϴDebt Consolidation Loan
   - ҪںϲծÿԽϵ͵ͳһ
   - ڼϢ֧����򻯲

4. ҵ˴Business Personal Loan
   - ڸ廧ְҵ߻Сҵҵչתʽ
   - Ҫṩ֤¼

˴

• һ˵˴Ҫ£

• Ҫ – 21 60 ꣨ͬͬ

• – RM3,000 RM5,000 ϣȡУ

• ҵ״ – нʿԹʿҵ

• ծʣDSR – һ㲻ܳ 60%Ӱ׼

• ֣CCRIS/CTOS – ߸׻

˴ŵ

• Ѻ – ҪƷ롣

• – п 24-48 Сʱڷſ

• ʽ; – ڽ����֧װޡҽơծϵȡ

• ̶ – ÿ»һ£׹滮

˴ȱ

• Ϣϸ – ȷ򳵴˴ͨϸߣ6%-15%

• ϸ – ׼ȡ롢ü¼

• Ӳ񸺵 – ûù滮ܵծѹء

˭ʺ˴

• ҪʽʿҽƷѡ֧ͥѧѵȣ

• Ҫϲծˣÿծ˽˴

• ҵ廧Ҫʽҵչ

• нʿҪʽת

˴⣨FAQ

1. ˴Ӱҵ
   ġʱл CCRIS/CTOS ¼뱻ܾڻܻή֡

2. ˴
   ͬеʱ䲻ͬЩп 24-48 СʱˣֿҪʱ䡣

3. ҿǰ
   ԡЩлȡǰãͨ**1% -3%** δǰȷ

4. ڻ
   ڻĺ
   - ɽLate Payment Fee
   - Ϣ
   - ½Ӱδ룩

5. ˴ߴǶ٣
   ȡڣ
   - ˮƽ
   - ֣CCRIS/CTOS
   -е
   һ˵ṩ RM300,000 Ĵ˶졣

ܽ᣺˴ʺ
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