Types of Personal Loans in Malaysia
In Malaysia, there are various types of personal loans available depending on your financial needs, creditworthiness, and eligibility. Below is a complete list of personal loan options:
1. Bank Personal Loans
- Offered by traditional banks with competitive interest rates.
- Requires a good credit score and stable income.
- Examples:
- Maybank Personal Loan (www.maybank2u.com.my)
- CIMB Cash Plus Personal Loan (www.cimb.com.my)
- RHB Personal Financing (www.rhbgroup.com)
- Public Bank Personal Loan (www.pbebank.com)
✅ Best for: Individuals with a steady income and good credit history.
2. Islamic Personal Financing (Shariah-Compliant Loans)
- Follows Islamic banking principles (profit-sharing instead of interest).
- Suitable for Muslims and those preferring Shariah-compliant financing.
- Examples:
- Bank Islam Personal Financing-i (www.bankislam.com)
- Maybank Islamic Personal Financing-i (www.maybank2u.com.my)
- Bank Rakyat Personal Financing-i (www.bankrakyat.com.my)
✅ Best for: Individuals looking for interest-free financing.
3. Fintech/Online Personal Loans
- Fully online application with fast approval.
- May have higher interest rates for bad credit borrowers.
- Examples:
- TNG eLoan (Touch ‘n Go Loan) (www.touchngo.com.my)
- Axiata Digital Capital (www.axiatadigital.com)
- JCL Credit Leasing (www.jclcredit.com.my)
✅ Best for: Those needing fast cash with minimal paperwork.
4. Cooperative Loans (Koperasi Loans – For Government Employees)
- Special loans for civil servants with salary deductions.
- Lower interest rates and easy approval.
- Examples:
- Bank Rakyat Personal Financing-i
- MBSB Personal Loan (www.mbsbbank.com)
- Yayasan Ihsan Rakyat Loan (www.yir.com.my)
✅ Best for: Government employees looking for low-interest financing.
5. Peer-to-Peer (P2P) Lending
- Borrow money from investors instead of banks.
- Approval may be easier, but interest rates vary.
- Examples:
- Funding Societies (www.fundingsocieties.com.my)
- CapBay (www.capbay.com)
- MoneyMatch (www.moneymatch.co)
✅ Best for: Borrowers with lower credit scores looking for alternative financing.
6. Secured Personal Loans
- Requires collateral such as a house, car, or fixed deposit.
- Easier approval and lower interest rates.
- Examples:
- Bank Simpanan Nasional (BSN) Secured Loan (www.mybsn.com.my)
- Maybank Auto Collateral Loan
✅ Best for: Individuals with assets but a low credit score.
7. Licensed Money Lenders (Registered with KPKT)
- Quick approval but higher interest rates.
- Must be registered under KPKT (Ministry of Housing and Local Government Malaysia).
- Examples:
- Private licensed lenders listed under KPKT (www.kpkt.gov.my)
✅ Best for: Urgent cash needs when banks reject your application.
8. Government-Backed Personal Loans
- Loans with low-interest rates supported by the government.
- Examples:
- BSN MyRinggit Personal Loan (www.mybsn.com.my)
- TEKUN Nasional Loan (for entrepreneurs) (www.tekun.gov.my)
✅ Best for: Individuals looking for affordable financing options.
9. Employer Salary Advance or Company Loans
- Some companies offer salary advances or staff loans.
- Repayment is deducted from future salaries.
✅ Best for: Employees needing small emergency loans.
10. Credit Card Cash Advance
- Withdraw cash from a credit card, but with very high interest rates.
- Not recommended unless necessary.
✅ Best for: Short-term financial needs when no other options are available.
11. Loan Sharks (Ah Long – Illegal Lenders) ❌
- Unlicensed and illegal lenders that charge extremely high interest rates.
- Known for harassment and threats if payments are missed.
- Avoid at all costs!
❌ Warning: Loan sharks operate illegally and are not recommended.
Comparison Table for Personal Loans in Malaysia
| Loan Type | Best For | Interest Rate | Approval Time |
|---|---|---|---|
| Bank Loans | Good credit score & stable job | Low to moderate | 3-7 days |
| Islamic Loans | Shariah-compliant borrowers | Low to moderate | 3-7 days |
| Online Fintech Loans | Fast approval, lower paperwork | Moderate to high | 24-48 hours |
| Cooperative Loans | Government employees | Low | 3-5 days |
| P2P Lending | Lower credit score borrowers | Moderate to high | 3-7 days |
| Secured Loans | Borrowers with collateral | Low | 3-7 days |
| Licensed Money Lenders | Urgent cash needs | High | Same day |
| Government Loans | Lower-income groups | Low | 7-14 days |
| Employer Loan | Employees with steady job | Low | Depends on employer |
| Credit Card Cash Advance | Emergency short-term use | Very high | Instant |
| Loan Sharks (Illegal) | Desperate borrowers | Extremely high | Instant (but dangerous) |
Final Tips for Choosing the Right Loan
✅ Always check the interest rate and repayment terms before applying.
✅ If you have a low credit score, consider secured loans or P2P lending.
✅ Avoid loan sharks at all costs – they are dangerous and illegal.
✅ Compare multiple lenders to get the best deal.
By choosing the right loan method, you can secure the best financing option based on your needs in Malaysia.
