Best Low Income Personal Loans in Malaysia 2025

When seeking a loan, banks often prefer high earners. They want to be sure you can repay the money. This can be a challenge for some people. A lower income might not get a loan approved.

But there is good news for you. Many lenders offer loans for low-income individuals. These loans are designed to fit your needs. They have lower requirements and flexible terms. You have options to get the support you need.

What are the options for low income personal loans in Malaysia?

It's a common concern to feel like your income is a barrier to getting a loan, but that's not the end of your story! In Malaysia, a minimum wage of RM1,700 doesn't have to hold you back. Financial institutions are creating solutions to help people like you.

Whether you're facing a medical emergency, covering educational costs, or need a financial boost, there are options designed for you. With low income personal loans, you can get the support you need. It's about finding a loan that fits your life, not changing your life to fit a loan. Choosing the best personal loan is not an easy job. So let us make it easy for you by listing down a few personal loans for low income individuals:

Personal loans for private company employees with low income:

Personal loans for government and/or GLC employees with low income:

Tips: If you need a head start, you can get loan recommendations from us. Just click the Apply For Loan button above to proceed and it shouldn't take you more than 10 minutes!

What is the maximum amount of personal loan that low income earners can borrow?

Even for low-income earners in Malaysia, the maximum amount you can borrow for a personal loan can be quite substantial. While each bank has its own limits, some might offer as much as RM300,000. It's important to remember, though, that the exact loan amount you qualify for isn't just a fixed number.

How do banks decide my loan amount if I have a low income salary?

The amount of personal loan you actually receive largely depends on two main factors that banks carefully review. Firstly, your monthly salary is assessed to ensure you can comfortably manage the repayments without financial strain. Secondly, banks thoroughly check your credit report to understand your past repayment habits and overall financial reliability. Based on these crucial details, the bank will then decide the maximum loan amount they can responsibly offer to you.

How do you choose the right personal loan for low income in Malaysia?

Taking a personal loan when you’re earning a low salary may be scary because what if you’re unable to repay the loan? Don’t worry, there are ways to choose the perfect personal loan according to your circumstances. But here's the good news: you absolutely don't have to navigate this alone! There are truly effective strategies to help you pick the ideal personal loan that genuinely suits your specific financial circumstances, ensuring comfort and peace of mind.

Tip 1: Compare Personal Loans With Low Interest Rates

The first thing you need to look at when comparing personal loans for low-salary earners is the interest rate. Securing the lowest possible interest rate can make a massive difference, significantly reducing your total repayment amount over the life of the loan. Always start by listing out a few loans with lower interest rates!

Tip 2: Compare Loan Tenure

Next up, it’s absolutely crucial to carefully compare the loan tenure, which is simply the length of your repayment period. A personal loan for low-income earners with the lowest interest rate may have short tenure, making it unsuitable for some people. Finding that sweet spot where the tenure offers comfortable monthly instalments is key to a stress-free repayment journey.

Tip 3: Use Personal Loan Calculator

Lastly, to truly ensure your chosen loan is affordable and fits perfectly into your budget, always use a reliable personal loan calculator, like the one available right here on RinggitPlus. This helpful digital tool allows you to accurately estimate your monthly payments based on different loan amounts and repayment periods. It’s your best friend for double-checking affordability and making a smart, confident decision before you commit!

What are the documents to apply for low income personal loans?

In general, below are some of the documents that you need to prepare to apply for low-income personal loans:

Salaried Employee:

• Copy of your IC (front and back)
• Latest 3-months or 6-months salary slip (depending on the bank)
• Latest 3-months or 6-months EPF statement (depending on the bank)
• Latest BE Form, with an official tax payment receipt
• Latest EA Form

Self-Employed:

• Copy of IC (front and back)
• Business Registration Certificate
• Latest 3-months or 6-months company bank statement (depending on the bank)
• Latest BE Form, with an official tax payment receipt
• Latest 6-months commission statements and bank statement (for commission earners and depending on the bank)

How to increase the approval rate of low salary personal loans?

When applying for a loan, showing a bank you're a trustworthy borrower is key. The best way to do this is by providing clear documents. This includes proof of your address and regular monthly bills like your electricity, water, or phone bills.

Your credit history is also very important. A strong credit background can significantly increase your chances of loan approval. Before you apply, it's a great idea to check your credit report online through a service like Experian. This gives you a clear picture of your financial health.

Finally, some personal financing may require you to get a Takaful plan. This is a type of protection that helps cover your loan in case of unexpected events that prevent you from repaying it. Always speak with your bank to fully understand all the requirements and terms before committing to a loan.

Unlocking the secrets to loan approval is easier with tips that we shared on RinggitPlus!

What are the common mistakes to avoid when applying for a low income personal loans?

Applying for a personal loan can feel overwhelming, especially when you have a lower income. To increase your chances of approval and ensure a smooth process, it's crucial to be aware of the common mistakes that could lead to rejection or future financial trouble.

1. Applying to Too Many Banks at Once

Many people believe that applying to multiple banks simultaneously increases their chances of approval. In reality, each application triggers a credit check, and multiple checks in a short period can negatively impact your credit score. Lenders may see this as a sign of financial desperation, which could lead to rejections from all of them.

• Instead, do this: Do your research and select 1-2 lenders whose eligibility criteria you meet and apply to them first.

2. Providing Incomplete or Inaccurate Information

It's tempting to rush through the application, but even a small typo or an omission can lead to your application being flagged and rejected. This includes incorrect income figures, outdated address details, or missing documents. Lenders must verify every piece of information you provide.

• Instead, do this: Double-check all details on your application form and ensure all required documents are up-to-date and clearly scanned.

3. Not Understanding Your Debt-Service Ratio (DSR)

Banks look at your DSR to determine if you can afford a new loan payment. Many low-income applicants fail to calculate this, only to be rejected because their existing debt payments are already too high relative to their income.

• Instead, do this: Use an online DSR calculator to get an estimate of your current ratio before applying. If it's too high, focus on paying down existing debts first.

4. Underestimating the Total Cost of the Loan

Focusing only on the low monthly instalment can be a mistake. A long loan tenure might make the monthly payment seem affordable, but it will significantly increase the total amount of interest you pay over time.

• Instead, do this: Use a personal loan calculator to see the total cost of the loan (principal + interest) for different tenures. Choose a tenure that balances an affordable monthly payment with a reasonable total cost.

5. Having a Poor Credit Score

Even for low-income loans, a good credit history is essential. Lenders will check your CCRIS report for any history of late payments or defaults. A poor credit score is one of the biggest reasons for rejection.

• Instead, do this: Get a copy of your CCRIS report and take steps to improve your credit score before applying. This includes paying all bills on time and clearing any outstanding defaults.

6. Applying for More Than You Need

It may seem wise to apply for a slightly larger amount just in case, but this increases the risk for the lender and can put you in a difficult financial position later. A larger loan means a higher monthly payment, which could strain your budget.

• Instead, do this: Borrow only the amount you absolutely need. This will make the loan easier to manage and increase your chances of getting approved.

How to apply for a low salary personal loan with RinggitPlus?

Now that you are equipped with the necessary information about this personal loans for low income individuals, you can easily apply online here at RinggitPlus! Just hit the Apply Now button above and we'll assist you accordingly.

Don't forget that you can also get loan recommendations with RinggitPlus too!