Best Personal Loans in Malaysia 2025

We've gathered tips and advice from our years of experience to help you find and apply for a personal loan. You'll learn what personal loans are, how to get the best rates and what to do if your application gets approved or rejected.

New to personal loans or need some expert help? Our free RinggitPlus loan recommendation service is for you. We'll explain your options and find a personal loan that fits your budget. You might be wondering when's the right time to apply for a personal loan, here's the truth: there's no perfect timing if you're not well prepared. 

List of personal loans in Malaysia

Looking for a personal loan? We've done the research for you. Below you'll find a comparison of options from various banks and licensed financial lenders.

How does a personal loan work?

A personal loan is money you borrow and pay back monthly. No collateral needed. You can use it for anything you want. Pay off debt, buy something big, or cover emergencies. Your monthly payment stays the same until it's paid off. The best thing is this can makes your budgeting more easier. Personal loans seem simple until you hit confusing terms. Here are the key words you need to know:

How long will I need to pay off my bank loan?

Your loan tenure is how long you take to pay back your loan. Most Malaysian banks offer 1 to 7 years to repay. Your choice matters a lot for your finances. Shorter tenure means higher monthly payments but less total interest. Longer tenure means lower monthly payments but more total interest overall. You pay every month until your loan is finished. The length you choose affects both your monthly payment and total cost. It's about finding what works best for your budget!

Here's a calculation example of how the loan tenure will affect your monthly instalment.

What will affect my personal loan interest rate?

Your personal interest rate mostly depends on three important things which are:

• Your credit score: which shows how reliable you are with payments 
• The actual loan amount you need
• The tenure you pick, that's how many years you choose to repay the loan

These elements together help determine the total cost of borrowing.

Is a personal loan calculator a helpful tool?

RinggitPlus has a free personal loan calculator on our website. It helps you estimate your monthly payments before you apply. This makes planning easier and helps you choose the right loan. Remember, this is just an estimate. The bank will give you the final interest rate after reviewing your application.

What type of personal loan should I compare in Malaysia?

Now you know the basics. Let's find the right loan for you. Comparing loans is like shopping for a phone. You don't just pick the cheapest one. You check the features that matter to you. Same with loans. Interest rate is important, but it's not everything. Ask yourself these questions:

• Do I want a secured or unsecured loan?
• Should I choose a conventional or Islamic loan?
• Do I need insurance with my loan?

Compare your options carefully. This helps you find a loan that fits your needs, not just your budget.

How does a personal loan help you financially?

Everyone has goals to achieve and a lot of times, they require money to kick-start the journey. We can gain money from any means possible such as employment, selling products or services, own savings, as well as loans. Some people are lucky enough to fund their goals with one or more combinations of the above methods.

But what about others who have limited options or whose limited options are not viable? Often, they shy away from the last option, a loan. If we look at this objectively, applying for a personal loan is practical for several reasons:

• Education: 
• Investment
• Emergency cash
• Funding for business
• Buy a property (house, car, equipment etc.); or
• Consolidate debts

How does a debt consolidation loan work?

Are you juggling multiple loans and credit card bills each month? It feels overwhelming! A debt consolidation loan combines all your debts into one loan. You make one monthly payment instead of many different ones. Multiple debts mean tracking different amounts, banks, due dates, and rates. This creates stress and confusion.

A consolidation loan offers several benefits. You get one payment instead of many. Interest rates are often lower. Longer repayment time is available. This leaves more money for other needs. Budgeting becomes easier too.

Many Malaysian banks offer debt consolidation loans. Al Rajhi Bank has Personal Financing-i for this purpose. Other banks provide similar options as well.

Let's see how it works with calculation examples. The examples below show before and after consolidation. Remember, these are just sample calculations. Banks will give you actual calculations and details when you apply.

Before debt consolidation:

Assuming you have one credit card from Bank A and two personal loans from Bank B and Bank C.

All three finances have different monthly instalments and outstanding balances, making up a total monthly commitment of RM2,000 on your end to pay to the banks.

After debt consolidation:

Paying RM2,000 monthly to the banks might not be feasible for some, so here's how you can consolidate them into a lower monthly instalment for a certain tenure.

How much do you save after consolidating credit cards and personal loan debts into a single loan?

RM2,000 – RM1,241 = RM759 ÷ RM2,000 x 100% = 38%

If you have a minimum monthly income of RM5,000, that means you are committing roughly 25% of your total monthly income to pay for your consolidated debts.

Important: The calculations above are just an example of how debt consolidation works. The actual calculation will be done by the Bank.

What should I consider before applying for any personal loans?

To apply for a personal loan, you need to consider a few things such as the amount you can apply for, the amount the bank can lend you, the required documents and the places to apply for a personal loan in Malaysia.

The typical loan amount you can borrow from banks ranges from RM5,000 to RM200,000, known as the principal amount. Once you have decided on your principal loan amount, you must choose a tenure that suits your financial capacity.

What is a Debt-Service Ratio (DSR)?

Debt-Service Ratio shows how much of your income goes to debt payments. Banks use this to decide if you can afford more loans. The rule is simple: your total monthly debt payments shouldn't exceed 60% of your monthly income. This gives you room for other expenses and savings.

Banks use this to see if you have enough money to pay your monthly instalment via this formula:

Here's an example: if you earn RM5,000 monthly and pay RM2,500 for loans, your DSR is 50%. This means half your income goes to debt payments. You have little money left for savings or emergencies. What happens if your DSR is too high? Banks will either reject your loan or offer a smaller amount. They want to make sure you can repay without struggling.

Calculate your DSR before applying for any loan. This helps you know what loan amount you can realistically get approved for.

What documents should I prepare to apply for my loan application?

You should prepare documents such as your Identification Card and income proof to speed up your loan application process. The type of document may vary from bank to bank depending on your employment type. So best to check with the bank of your choice beforehand.

All in all, you can find the general requirements in the table below:

Where to apply online for a personal loan in Malaysia?

You can apply by visiting the bank and speaking to a loan officer or online such as RinggitPlus. Applying online is always recommended because you can easily compare personal loans and use some tools to determine your credit score, calculate loan affordability and download statements. – all at your fingertips.

How to apply for a personal loan with RinggitPlus?

Applying for a personal loan with RinggitPlus is quick, easy, and 100% online. You can do it in under 10 minutes, right from your couch. We’ll even help check your eligibility first, so you don’t waste time on loans with low approval chances.

Step 1: Choose Your Loan
Browse through our list of personal loans and click “Apply Now.” Not sure which one suits you? No worries — just hit the “Apply for Loan” button above and we’ll recommend one based on your needs.

Step 2: Chat With Our WhatsApp Bot
You’ll be redirected to our WhatsApp chatbot. Simply answer a few quick questions to kick off your application. It's smart, fast, and easy to use.

Step 3: Let the Bank Handle the Rest

Once you’ve completed the chat, we’ll submit your application to the bank. From there, just sit back and wait — the bank will contact you directly if you’re eligible. 

How will I receive my loan money once approved?

There are multiple ways banks can disburse the approved loan to you. Some banks require you to open a savings account with them, whereas others will pass you the cheque or do an IBG Transfer to your designated bank account. Keep in mind that your eligibility, credit history and credit score play major roles in determining your loan application approval.

How do I qualify for a personal loan?

You must first meet the eligibility criteria as set out by the bank, including but not limited to:

• Nationality: Malaysian, permanent resident or foreigner
• Age: 21 to 60 years
• Employment type: salaried employee (public/private sector) or self-employed
• Income type: fixed, contract, commission basis
• Residential status: own house, rented, living with family/relatives, company provided etc.

Tips: Your lifestyle is also a contributing factor to your loan approval. If the bank spots an inconsistency in your employment histories, salary and disposable incomes, and places of residence, you may not be a favourable borrower.

Does the bank check my financial history before approving my personal loan application? 

Banks always check your financial past before approving your loan application. They look at your credit report first. This report shows all your previous debt payments. It tells banks if you pay on time. Banks use the Central Credit Reference Information System (CCRIS) for this check. CCRIS gathers your credit history from all Malaysian financial providers. It shows your payment behavior over the past 12 months. This comprehensive report helps banks understand your financial trustworthiness. Good payment history means higher chances of loan approval.

What is a credit score? And how can I check for mine?

A credit score is a 3-digit number that shows how good you are at repaying loans. Banks use this number to decide if they should lend you money. A good credit score gives you higher chances of loan approval. You also get lower interest rates and faster approval process.

Banks see high scores as safe borrowers and low scores as risky ones. Low scores may lead to rejection or higher interest rates. That's why checking your score regularly is important, especially with multiple loans or credit cards.

You can check your score through CTOS, a credit agency in Malaysia. Banks also use CTOS data when reviewing your loan application. Knowing your score helps you understand your chances before applying for any loan.

To give you a general idea of the credit score and what it means to lenders, refer to the table below:

What is the best case scenario when you get fast loan approval from bank for your application?

Your loan approval typically takes 1 to 5 working days after submission. The bank will notify you once your loan is approved and ready for disbursement. You'll receive important documents including product disclosure sheet, loan repayment table, and terms and conditions. After disbursement, check your bank account to confirm the money has been transferred. Make sure to review all documents carefully before signing anything.

What to do in the worst case scenario when your loan application is rejected?

If your loan gets rejected, call the bank to understand why. Check your repayment history for previous loans like PTPTN through CCRIS. Also check your credit score via CTOS to see where you stand. Improve your creditworthiness by making all payments on time. Wait for a while before applying for another personal loan from any bank. This gives your credit score time to improve. Don't worry, RinggitPlus will always be here to help you to get a personal loan approved. 

What to do after my loan is approved?

The next steps are important for ensuring a smooth repayment process and maintaining your financial health. Here’s a checklist guide on what to do after your personal loan is approved.

1. Carefully Review the Loan Agreement

Before you sign any documents, take the time to read the loan agreement in its entirety. This is a legally binding contract that outlines the terms and conditions of your loan. Pay close attention to the following details:

• Final Loan Amount: Confirm that the amount disbursed matches what you applied for.
• Interest Rate and Calculation: Understand whether the rate is fixed or variable and how interest is calculated on your principal.
• Repayment Schedule: Note the exact due date for your monthly instalments. Missing a payment can lead to penalties and a negative impact on your credit score.
• Total Cost of the Loan: The agreement should detail the total amount you will pay over the life of the loan, including all interest and fees.
• Early Repayment/Prepayment Penalties: Check if there are any fees for paying off your loan early.
• Late Payment Penalties: Familiarize yourself with the charges for late or missed payments.

If you have any questions or find any discrepancies, contact your bank or lender immediately before signing.

2. Set Up Your Repayment Plan

Consistency is key to managing your loan effectively. Set up a clear and reliable system for making your payments on time.

• Automate Payments: The easiest way to avoid late payments is to set up an automatic bank transfer from your account to the lender. This ensures that the payment is made on time every month without you having to remember.
• Create a Budget: Incorporate your new loan repayment into your monthly budget. Ensure you have enough funds to cover the instalment without compromising other essential expenses.
• Set Reminders: If you prefer to make manual payments, set up recurring reminders on your phone or calendar a few days before the due date.

3. Utilise the Loan Funds Wisely

Use the money for the exact purpose you stated in your application. Whether it's for home renovations, debt consolidation, or a major purchase, stick to your original plan. Avoid the temptation to use the funds for non-essential or unplanned expenses, as this can lead to further financial strain.

4. Understand the Impact on Your Credit Score

Your new personal loan will be reported to credit bureaus like CCRIS ain Malaysia. This will affect your credit score and history.

• Positive Impact: Consistently making on-time payments will build a positive credit history, which can make it easier to secure future financing with better terms.
• Negative Impact: Late or missed payments will be recorded and can significantly damage your credit score, making it difficult to get approved for credit cards, home loans, or future personal loans.

5. Keep Your Financial Documents Organized

Maintain a dedicated folder for all documents related to your loan. This includes the signed loan agreement, payment receipts, and any correspondence from the lender. Having these documents readily available can be helpful if you have any questions or disputes in the future.

6. Consider Early Repayment (If Feasible)

If your financial situation improves and your loan agreement allows it without a significant penalty, consider making extra payments or paying off the loan earlier than the scheduled tenure. This can save you a substantial amount on interest charges and free up your monthly cash flow.

When is the due date of my personal loan?

Your first monthly payment starts one month after receiving the loan money. The due date depends on your loan terms and conditions. It could be on the 1st or mid-month.

If you can't pay the full amount, you can pay the minimum recommended by the bank. This prevents late payment penalties but comes with a cost. You'll be charged 15% to 18% yearly interest on the remaining unpaid balance. Paying only the minimum means you'll pay much more over time. It's better to pay the full amount whenever possible to avoid extra charges.

What happens if I pay my personal loan instalment late?

The bank will penalise you a 1% late payment fee, while non-banks or financial lenders often charge an 8% fee. The late payment fee is calculated daily until you pay it off. That's not all, your credit score will take a turn for the worse too. Hence it is important to pay your instalment in full before or on the due date.

Below is a calculation example if you are late in paying your loan instalment.

For example:

If you are on the verge of defaulting on your loan, you must immediately inform the bank to discuss a possible recourse on your repayments.

Alternatively, you can engage Agensi Kaunseling dan Pengurusan Kredit (AKPK), a debt management program by Bank Negara Malaysia that offers free services on money management, credit counselling and debt restructuring for individuals.

Can I settle my outstanding loan balances early?

You can settle your outstanding loan balances before the end of your tenure, subject to the terms and conditions of your loan.

Tips: A personal loan is usually calculated on a flat rate basis; therefore, a partial settlement is not advisable. If you have double-paid your monthly instalment for the month, the bank will deem it an “Advance Payment” which will not reduce your interest payment and the principal amount for the month.

You must inform the bank in a written notice before your loan early settlement. Furthermore, an Early Settlement fee may or may not be charged, depending on your loan agreement.

How do I make my monthly instalment payment?

You have the flexibility to make your monthly instalment payment in various channels such as follows:

• Online banking (IBFT or IBG transfer, bill payment etc.)
• Standing instruction (auto deduction)
• Cash deposit
• Over the counter

Tips: You may earn cashback on your interest payments when you make a prompt repayment every month throughout the tenure. Check out these top personal loans with a cashback program:

• Alliance Bank CashFirst Personal Loan
• Hong Leong Personal Loan
• AmBank AmMoneyLine

How can RinggitPlus help with my personal loan journey?

Financial freedom means you're no longer stuck with unmanageable debts. This guide helps you make smart loan decisions and get approved easily.

RinggitPlus understands your concerns about applying for personal loans. We have specialised loan pages designed for different needs and budgets. Find options that match your income, affordability, and preferences below:

Compare and apply for fast approval loan

Compare and apply personal loans for low-income earners

Compare and apply for personal loans with low interest rates

Compare and apply personal loans for government/glc employees

Compare and apply for Shariah-compliant Islamic loans

Compare and apply for a secured loan