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. Learn what personal loans are, how to get the best rates, and what to do once your application gets approved, or is rejected.

New to personal loans or need some expert help? Try the free RinggitPlus loan recommendation service. We'll explain your options and find a personal loan that fits your budget. 

List of Personal Loans In Malaysia

Looking for a personal loan? We've done the research for you. Use the simple loan calculator on this page to find out what your monthly repayments are. Want to see the best lending options at a glance? Review our list of Malaysian Loans.

How Does A Personal Loan Work?

An unsecured personal loan is money you borrow from a bank or licensed lender. You make monthly repayments to pay back your loan. . Lenders will charge you a percentage of the amount you borrow as Interest, this is added to your monthly loan payment.

Personal loans seem simple until you hit confusing terms. We’ll explain the terms 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 and less total interest. Longer tenure means lower monthly payments and more total interest. You make repayments by monthly installment until your loan is totally repaid.

The length you choose affects both your monthly payment and total cost. It's about finding what works best for your budget!

Our example shows how the loan tenure will affect your monthly repayments.

What Will Affect My Personal Loan Interest Rate?

The interest rate offered by a Bank or Lender may not match the advertised rate. How the rate varies mostly depends on these four important things:

• Your credit score, which shows how reliable you are with payments
• The actual loan amount, how much you want to borrow
• The tenure you pick, that's how many years you choose to repay the loan
• Your Debt Service Ratio (DSR), which is percentage of a borrower's total income that goes toward paying monthly obligations

These elements together help determine the total cost of borrowing.

What Is Debt Service Ratio?

DSR shows how much of your income goes toward debt payments each month. Banks use this to decide how much money you can borrow. 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 DSR to see if you have enough money to pay your monthly instalment using a formula:

For example, if you take time to pay RM5,000 monthly and you pay RM2,500 in loan installments each month , your DSR is 50%. Half your income goes to debt payments, you have little money left for living costs, savings, and emergencies.

What happens if your DSR is too high? Banks will either reject your loan or offer a smaller borrowing amount. They want to make sure you can repay your debt without struggling.

Calculate your DSR before applying for a personal loan. It will help you know how much you can realistically borrow.

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?

A personal loan can improve your financial situation in several practical ways:

Get Money When You Need It Most

Personal loans give you cash upfront when you don't have enough savings. You don't have to wait years to save for important things. This includes education, home repairs, or starting a business.

Build Your Credit Score

Making loan payments on time shows lenders you're responsible with money. This improves your credit score over time. Better credit means lower interest rates on future loans and credit cards.

Save Money Through Debt Consolidation

You might have multiple debts with high interest rates like credit cards. A personal loan can combine them into one lower monthly payment. This often saves you hundreds or thousands of dollars in interest.

Invest In Your Future Earning Power

Use a loan for education, job training, or starting a business. These investments can increase your income over time. The extra money you earn often pays back much more than the loan cost.

Handle Emergencies Without Going Broke

Don't drain your savings for unexpected expenses. A personal loan lets you keep your emergency fund safe. You can still pay for urgent needs without financial stress.

Make Large Purchases Affordable

Avoid paying huge amounts all at once. Loans let you spread costs over months or years. This creates manageable monthly payments that fit your budget.

The key is using loans strategically for things that improve your finances. Avoid using them just for wants or luxury items.

What Is Debt Consolidation And How It Works?

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.

Let's see how it works with calculation examples showing before and after consolidation. Remember, these are just sample calculations.

Don't worry about doing the math yourself - banks will sit down with you and explain everything. They'll show you the exact interest rate and all the details in your product disclosure sheet.

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.

How Banks Calculate Your Personal Loan Interest?

Banks calculate personal loan interest using a simple flat rate method:

Step 1: Apply The Interest Rate To Your Full Loan Amount

Banks take your original loan amount and multiply it by the interest rate. They use the full loan amount for the entire loan period. The interest doesn't change even as you pay down the balance.

Step 2: Calculate Total Interest For The Whole Loan

They multiply your loan amount by the interest rate and loan years. For example: RM10,000 × 8% × 5 years = RM4,000 total interest.

Step 3: Add Interest To Your Original Loan

Banks add the total interest to your original loan amount. Using the example above: RM10,000 + RM4,000 = RM14,000 total repayment.

Step 4: Divide By Number Of Months

They divide the total repayment by your loan tenure in months. RM14,000 ÷ 60 months = RM233.33 monthly payment.

Why are banks using this method? This flat rate calculation keeps your monthly payments exactly the same. You know exactly how much to pay each month. Banks prefer this because it's simple for both them and customers. However, remember that the Effective Interest Rate (EIR) will be higher. This is because you're paying interest on the full amount throughout. You're not getting credit for the principal you've already paid back.

Why The Effective Interest Rate (EIR) Is Higher?

Think of it this way: you start with a RM10,000 loan. After one year, you've paid back some money. Maybe you only owe RM8,000 now. However, here's the problem. The bank still charges interest on the full RM10,000. This happens even though you owe less money.

Let's compare what happens each month. In month 1, you owe RM10,000. The bank charges interest on RM10,000. By month 12, you owe RM8,000. But the bank still charges interest on RM10,000. By month 24, you owe RM6,000. The bank continues charging interest on RM10,000.

This makes the real interest rate higher. You're paying interest on money you already gave back to the bank. It's like paying rent on a room you no longer live in. Your flat rate might be 8%. But you pay interest on the full amount throughout the entire loan period. Your actual interest rate becomes around 14-16%.

This is why banks must show you both rates by law. The EIR tells you the real cost of borrowing. It helps you understand what you're actually paying.

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 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 online with us at RinggitPlus by comparing all the personal loans that suit you. 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. Everything is 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 for 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.

Good news! If you apply for an RHB personal loan through RinggitPlus, you can get approval instantly. The online application process is fast and convenient. You don't have to wait days or weeks for a decision.

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 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 A 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 going forward. 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