Best Secured Personal Loans in Malaysia 2022

Empower yourself with a secured loan and enjoy greater access to cash and lower interest rates, because you’re backed by the security of your collateral. This surety on your personal loan can be in the form of a fixed deposit account, unit trusts, property, or even your uncle John - acting as your guarantor.

Secured Personal Loan Malaysia - Bad Credit Personal Loans


What Are Secured Personal Loans?

Just as its name suggests, secured personal loans are secured against a guarantor or the value of the collateral the borrower owns. 

This means that the loan is attached to something of value which typically would be car loans and mortgages. 

Other types of collaterals are in the form of fixed deposit, structured investment or unit trusts.

What Are the Pros of Secured Personal Loans?

With collateral being pledged to the secured personal loan (instead of credit scores for unsecured loans), this creates confidence for the bank to allow borrowing larger amounts for a longer tenure. 

The repayment period of secured personal loans can be stretched up to 20 years!

Based on the value of the collateral attached to the secured loan, interest rates are generally lower as compared to unsecured loans.

What Are the Cons of Secured Personal Loans?

While the repayment tenure can be for a long time, interest rates can be doubled. 

Also, most banks in Malaysia would require that borrowers own a house before the secured personal loans can be approved.

The collaterals function as a safety net should the borrower fail to make repayments.

In such circumstances, the bank has the right to seize the collateral pledged or shift the responsibility of repayment to the guarantor.

What is the Maximum Secured Personal Loan I Can Borrow?

The borrowing amount differs between banks.

Bank Islam Personal Cash Line-i for example, allows borrowing between RM5,000 and RM200,000 over flexible repayment periods between 1 to 5 years.

BSN Sandaran Sijil Simpanan Tetap also offers borrowing from RM5,000 to a maximum of 95% of the amount held in BSN Term Deposit over flexible repayment periods ranging from 2 to 10 years.

How to Choose the Best Secured Personal Loan?

Secured loans are best for long-term borrowers who need a huge sum of cash and have a suitable property to be pledged as collateral. 

However, with the long-term repayment period, low interest rate would accumulate over the years.

Hence, looking at the profit rate is key to choosing the best secured personal loan. Next, compare them to the loan’s tenure which will directly impact monthly repayment. 

Make use of the personal loan online calculator.

To start using the loan calculator, all you have to do is to select the secured personal loan you prefer and then specify monthly income, borrowing amount and period of repayment. 

The loan calculator then indicates the monthly repayment which is the best determining factor when looking for the best secured personal loan.

How Do I Repay My Monthly Instalment?

Typically, you will have 3 options to choose from such as salary deduction, auto-debit for monthly installment (for salary crediting account) or via Standing Instruction.

Here are some of the Best Secured Personal Loans in Malaysia:

  1. Bank Islam Personal Cash Line-i
  2. Personal financing secured against a Bank Islam Fixed Deposit, Structured Investment or Unit Trust. Flexible financing tenures with no hidden fees and charges.
  3. BSN Sandaran Sijil Simpanan Tetap
  4. A secured Personal Loan from that is linked to your BSN Term Deposit. Open to all Malaysians with repayment terms from 2 to a maximum of 10 years.
  5. Agrobank Hartani-i
  6. Want to own and develop agricultural land but lack the funds? Secure up to 90% margin of financing with repayment periods up to 20 years at a competitive flat profit rate.

Secured Personal Loan Malaysia Interest Rate 2020

Bank Min. Monthly Income Max. Loan Amount Interest/Profit Rate (p.a.) Loan Tenure
Bank Islam RM1,500 RM200,000 7.72% 12-60 months
BSN - 95% of BSN Term Deposit 5.85% - 6.35% 24-120 months
Agrobank RM1,500 90% of Land Value 7.70% 12-240 months


Who Can Apply for Secured Personal Loans?

Similar to applying for a conventional personal loan, requirements of applicants are the same:

  • Malaysian Citizen - both Muslims and non-Muslims can apply for Islamic banking products.
  • Minimum Age ranges from 18 - 21 years old.
  • Maximum Age ranges from 60 - 65 years old.
  • Minimum Monthly Income typically ranges from RM1,500 and above.
  • A Guarantor or Collateral is required.

What Personal Documents Do I Need to Apply for a Secured Personal Loan?

Supporting documents for Collateral:

  • Original Land Grant
  • Original Certificate of Fixed Deposit or Structured Investment or Unit Trusts
  • Copy of Passbook or Statement


  • Copy of NRIC (both sides)
  • Latest 3 months’ validated salary slips
  • Latest 3 months’ bank statements of salary crediting account
  • Confirmation Letter from Employer


  • Copy of NRIC (both sides)
  • Business Registration Certificate or Operating License
  • Last 6 months’ bank statements
  • Latest annual income statement (BE/B Form), with valid tax payment receipt
  • Last 2 years’ business financial statement

Still not sure? Check out our recommendations for personal loans here.

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