Personal Loan
Personal loan is a popular and growing product in Malaysia. As Malaysians house hold debts grow higher , government and central bank start to tighten the criteria for loans in Malaysia. Personal Loan products took a heavy hit when Malaysian Central Bank announced that personal loan would be capped at a maximum 10 years repayment period on 2013.
Personal loan is typically unsecured in Malaysia. This means that there are no collateral and guarantor is needed. This may sound less intimidating however bank will stringent when processing loan applications as there are no security to hold on to. Being unsecured, Bank will incur greater risk therefore the interest such for loans would be higher .
Basic Eligiblity
A borrower will have to be anywhere between 21 years old to 60 years old at the end of financing tenure when applying for a personal loan. A solid few years employment would be added advantage. Typically, a minimum RM 2,000 monthly salary is required from banks while the higher income would definitely helps.
Documents needed
Typically, You will need a copy of your Identity Card front and back , latest 3 months salary slip , confirmation of employment , bank statement where your salary is credited and most recent income tax return form.
CCRIS & CTOS Credit Score
Credit score plays a very important part when bank assesses personal loan applicants. For a start, an applicant will need to have 2 years credit records. So a borrower will have to start using his or her credit cards or other loans for at least 2 years before applying for personal loans. No records means that bank will have nothing to assess to which is not good. Any late payment for 2 months will be a red flag and the application will be rejected. As CCRIS data is only kept for 2 years, you will have to maintain good record for 2 years to apply for a personal loan again.