How to apply for a Personal Loan

Need cash fast? Want to take out a Personal Loan? Stop! Before you do anything else read our basic guide to applying for a bank loan. We’ll walk you through processing an application.

Personal loans are handy when you need cash because life just happens; whether or not you have the budget for it. So no matter if it’s for emergency funds or something less critical, banks are realising the need for fast approval loans with minimal paperwork. If you are planning on taking a personal loan, here are a few things that will help you with your application process.

Application procedure

There are several ways to apply for a personal loan nowadays and the method may depend on your chosen bank’s procedure:

Walk-in – When in doubt, you can always just walk into your chosen bank branch and ask about loan applications. Some bank branches are better equipped with MyKad readers so no documentation required such as at Easy- RHB outlets. To apply for the AEONiCash and Hong Leong Mach IOU, you will only need your MyKad and income slip. Usually these banks aim to provide customers with fast-approval loans that require little documentation. If in doubt, check the bank website or give the customer service centre a call.

Phone-in – Some banks simply ask that you phone in. This is then followed by instructions on how to go about your application. Some may require you to head down to a bank branch but others may fax or email you a form to fill and return via the same mode.

Online application – Like phone-in applications, you will likely be asked to scan and email copies of required documents to the bank should you desire quick approval. Some banks only do partial online applications and ask for your contact details promising to respond with a phone call within 24 hours with further instructions.

Preparing Your Documents

It is always best to be prepared. If your bank website is unclear and you want your loan approved with as little hassle as possible; here’s a list of documents to prepare just in case. Almost every loan will require the same kind of documentation and these are the usual suspects:

1) Copy of NRIC (and the original to present if applying in person) – Arguably the most important document that you need for any bank application. A passport is also acceptable if you are a non-Malaysian resident.

2) Proof of Income: Some banks require just one but there are others that will require a combination of 2-3 if not all, so do call your bank to find out. When in doubt, it’s always best to prepare as many as you can!  

  • Salary slip – Depending on how much you are planning to take, your bank could require between 2-6 months of salary slips; or Employer confirmation letter – should you be unable to provide your salary slips a confirmation letter from your current employer can be used instead.
  • Credit card/Bank statement – This is so the bank can assess your credit history to determine whether you can afford to repay your loan. This, along with salary slips are key documents in an unsecured loan application.
  • EPF statement – Your EPF account can be used to show your employment history and proof of income.
  • EA Form – This annual statement is provided by your employer and contains important information about your salary (including bonus and incentives); or B Form if you are self-employed and run your own business(es).

Post-application

Always ask your bank how the money will be disbursed to you. Some may require that you open a savings account with them (if you don’t already have one) but some may just give you a cheque or do an interbank Giro transfer. If you don’t have a savings account with them, you will need to open one.  Once settled, there’s just the wait.

RHB’s Easy Express Loan claims on the spot disbursement; AEON and Hong Leong Mach all promise within the hour but most banks can take anywhere between 1-14 working days. Some banks offer the convenience of tracking your application online but even if they don’t there’s no harm in calling them up for an update.

If your application is rejected don’t be disheartened. There are plenty of other banks offering competitive rates and just as simple to apply. Good luck!

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