Question 1

What is a personal loan ?

Accepted Answer

A personal loan is an unsecured loan you borrow from a bank. This means that you can borrow money from the bank without the bank asking for any collateral. However, you should still repay your personal loan on time to avoid late penalty charges or negative impact on your credit score. 
A personal loan has a shorter repayment period compared to home loans. You are usually expected to fully repay your personal loan within 10 years. 
Also, unlike home or car loans, you can get a personal loan without any specific purposes. You can get it for home improvements, start a business or even for medical emergencies. However, we do not recommend getting a personal loan without careful consideration.

Question 2

What are the different types of personal loans in Malaysia ?

Accepted Answer

There are two types of personal loans available: secured and unsecured loans.
What are secured loans? 
Secured loans are where you are required to offer an asset (e.g. car, house) as collateral in case you cannot repay your loan. 
This means that the lender has a legal right to seize the asset you listed in the event you cannot repay your loan within the agreed repayment terms.
Bigger loans like home loans may also require you to list a guarantor in case you fail to repay your loan.
What are unsecured loans?
Unsecured loans are loans where the lenders are not required to list any asset as a collateral. Instead, they will assess you’re your creditworthiness based on the following criteria among other factors before they decide if they want to lend you the money:  
 • Your employment status 
 • Your proof of income (at least 6 months)
 • Your credit score 
These criteria will also determine how much you can borrow, your personal loan terms and interest rate. You can read about the types of personal loans and interest rates (https://www.imoney.my/articles/types-of-personal-loans-in-malaysia)for more information.

Question 3

What are the differences between Islamic financing and conventional loans? Which should you get ?

Accepted Answer

Firstly, let’s find out what is a conventional loan: 
A conventional loan follows conventional financing principles where lenders lend money to customers like you and earn profit from the interest you paid on your loan every month.
What is an Islamic financing?
An Islamic financing follows Shariah financing principles which prohibits Riba (interest-based transactions). Instead, it is based on the concept of earning through the sale of commodities which looks like this:
 • Deferred Payment: where you will repay the Bank of the Item's Selling Price on deferred basis through monthly payments.
To find out more, you can read our article about Islamic property financing.(https://www.imoney.my/articles/islamic-property-financing)

Question 4

When should I apply for a personal loan ?

Accepted Answer

While there are many reasons to get a personal loan, we recommend that you apply for one which can help you generate a return or reduce your debt over time. Some good reasons for getting a personal loan include:
 • To better manage your debts through consolidation
If you currently have a few outstanding debts – like other personal loans and credit card balances – consolidating your debts into one lower-interest personal loan will help you better manage your debts. Not only will you be able to lower your overall interest payments and fix a monthly repayment, you will also find it easier to manage just one repayment instead of multiple.
 • To improve your credit score
Taking a personal loan and refinancing it on time shows a bank that you can be trusted with credit (a.k.a borrowed money). A good way to do so is to take a low-interest personal loan to pay off your credit card balance – this does not just save you money but can also improve your credit score if you make your repayments on time!
 • To pay for a medical emergency
Your physical health should always be prioritized over your financial health. If you or your loved one does not have medical insurance when hit by an unexpected health emergency, taking a personal loan is one of the easiest solutions to access the medical treatment needed.
Get more insight as you read our article about the right reasons to take a personal loan.(https://www.imoney.my/articles/4-times-personal-loan-makes-perfect-sense)

Question 5

What is the best personal loan for me ?

Accepted Answer

The best personal loan for you is one that meets your needs and will not financially burden you. Use our iMoney Personal Loan Calculator (https://www.imoney.my/personal-loan#page-container)to find what you need.

Question 6

How do I apply for a personal loan online ?

Accepted Answer

It’s quick and simple:
1. Use our personal loan calculator to tell us what you are looking for, your basic and employment info. We will then recommend you a list of personal loans that fit your needs and eligibility.
2. Click “Apply” on the personal loan that you would like to apply for and fill out the application form (your basic and employment info).
3. We’ll get in touch with you within 1 business day to help you process and submit your application.
4. You will hear from the bank or provider on your application status.

Question 7

Where can I apply for a personal loan, and why should I apply through via us?

Accepted Answer

We provides you with the tools that you need to find the best personal loan for your situation. Our iMoney consultants will help guide you through the application process and even assist you in checking your eligibility requirements for your preferred loan.
We offer:
 • Personal loan calculatorA personal loan calculator to help you decide on how much you can afford to borrow. Our personal loan calculator helps you compare and find the best personal loans in Malaysia based on your needs and eligibility.
 • Friendly customer care agentsOur friendly customer care agents will guide you through the borrowing process. They will call you to check your eligibility and recommend the right personal loan product with higher chances of approval. Our CCAs will also help you with your application after you have filled out your details.
 • Quick and easy online applicationsApply from the convenience of your home. It's fast, free, and fully online (some banks may require you to visit a bank branch to verify your identity).

Question 8

How much can I borrow with a personal loan ?

Accepted Answer

This depends on your employment status, income, and your credit score. The highest loan amount you can borrow through a personal loan in Malaysia is RM200,000, depending on the financial institutions. However, your salary also plays a part in determining the loan amount that you qualify for. As a rule of thumb, a borrower can typically borrow up to four times his/her monthly salary. Use our personal loan calculator (https://www.imoney.my/personal-loan?&utm_source=google-search&utm_medium=ad-text&utm_campaign=cre_short_term_prospects_gg/-sea/-bmm/-[personal-loan]/-kw:-branded-(my/-kl)-(my-pl-en)&utm_content=imoney%20personal%20loan&utm_term=21587968537&agid=167464872473&fiid=&tid=kwd-2250860080782&loc=9066685&net=g&dev=m&devm=&cid=713412934503&aceid=&mt=b&ap=&pl=&gad_source=1&gbraid=0AAAAADO6oCskeaV7cqN9oMbIHXp-yp4PR&gclid=Cj0KCQjwm7q-BhDRARIsACD6-fWNVYJ2EHiOAnv270OPBZwAfe9B2RyhZ0Tj-aMxRyMBRkFkHp-nP_oaAtpsEALw_wcB#page-container)to compare and apply for the personal loan which fits your needs and eligibility.

Question 9

What are the general requirements when applying for a personal loan in Malaysia ?

Accepted Answer

In general, there are three basic requirements for applying for a personal loan in Malaysia. These are:
1. You must be between the ages of 18 and 65 years old.
2. You must be a Malaysian citizen (some banks will make an exception if you apply in person).
3. You must not be bankrupt.

Question 10

What is the minimum salary requirement for a personal loan ?

Accepted Answer

The minimum salary requirement for a personal loan is determined by the lender and amount that you are looking to borrow. In general, you should have a salary of at least RM2,000 per month before applying for a personal loan.

Question 11

What is the age requirement to apply for personal loans in Malaysia ?

Accepted Answer

You need to be at least 18 years old and below 60 years old. The age requirement may differ slightly from financial institution to financial institution. Use our personal loan calculator (https://www.imoney.my/personal-loan?&utm_source=google-search&utm_medium=ad-text&utm_campaign=cre_short_term_prospects_gg/-sea/-bmm/-[personal-loan]/-kw:-branded-(my/-kl)-(my-pl-en)&utm_content=imoney%20personal%20loan&utm_term=21587968537&agid=167464872473&fiid=&tid=kwd-2250860080782&loc=9066685&net=g&dev=m&devm=&cid=713412934503&aceid=&mt=b&ap=&pl=&gad_source=1&gbraid=0AAAAADO6oCskeaV7cqN9oMbIHXp-yp4PR&gclid=Cj0KCQjwm7q-BhDRARIsACD6-fWNVYJ2EHiOAnv270OPBZwAfe9B2RyhZ0Tj-aMxRyMBRkFkHp-nP_oaAtpsEALw_wcB#page-container)above to find which financial institution offers a personal loan that you are eligible for.

Question 12

What documents are required to apply for a personal loan ?

Accepted Answer

The documents needed to apply for a personal loan are:
 • A copy of your NRIC
 • Your salary slip
 • Your EPF statement
You may also need other documents depending on your income status (salaried/self employed/commission).

Question 13

How do personal loan interest rates work ?

Accepted Answer

The interest rate of a personal loan depends on several factors including your income, employment status, and credit score. Use our personal loan calculator (https://www.imoney.my/personal-loan?&utm_source=google-search&utm_medium=ad-text&utm_campaign=cre_short_term_prospects_gg/-sea/-bmm/-[personal-loan]/-kw:-branded-(my/-kl)-(my-pl-en)&utm_content=imoney%20personal%20loan&utm_term=21587968537&agid=167464872473&fiid=&tid=kwd-2250860080782&loc=9066685&net=g&dev=m&devm=&cid=713412934503&aceid=&mt=b&ap=&pl=&gad_source=1&gbraid=0AAAAADO6oCskeaV7cqN9oMbIHXp-yp4PR&gclid=Cj0KCQjwm7q-BhDRARIsACD6-fWNVYJ2EHiOAnv270OPBZwAfe9B2RyhZ0Tj-aMxRyMBRkFkHp-nP_oaAtpsEALw_wcB#page-container)to find the personal loan that best fits your needs and eligibility.

Question 14

What is the different between Flat Interest Rate and Effective Interest Rate ?

Question 15

How are personal loan interest rates calculated ?

Accepted Answer

Interest rates are determined by lenders based on their Base Rate (BR) plus their declared margin. This number is called the Effective Lending Rate (ELR). For example, Maybank has a BR of 1.75% plus a margin of 1.50%; this means the interest rate that you are charged is 3.25%.
Interest rates are expressed as Annual Percentage Rates (APR). This means that the interest is calculated for the whole year instead of a monthly basis. To get the monthly interest rate, just divide the APR by 12 months.
Visit our Learning Centre for more information on how the Base Rate works.(https://www.imoney.my/articles/all-about-that-base-how-does-base-rate-work)

Question 16

How does the personal loan calculator work ?

Accepted Answer

The iMoney Personal Loan Calculator is designed to match you with the most suitable loan for your financial needs. It takes into account your salary (which will determine how much you are able to borrow), the type of loan you want, and amount you want to borrow.
You can also use the calculator to adjust the amount of time you will need to pay the loan back to get an idea of how much the monthly payments you can afford.

Question 17

How long does it usually take for a personal loan to get approved ?

Accepted Answer

The approval process can be as fast as 48 hours to a few days, depending on the bank or loan provider. Check out our list of fast approval loans (https://www.imoney.my/personal-loan/fast-approval)which can process your application and disburse the loan to you within 48 hours.

Question 18

What are the usual personal loan fees and charges ?

Accepted Answer

You can expect to pay a one time stamp duty fee, in addition to any other bank charges, when you take a personal loan. Additionally, you may have to pay an early settlement fee if you decide to pay off your loan early.
You will NOT be asked to pay any fees or charges when applying for a loan.

Question 19

Do I have to pay upfront fees or deposit to apply for a personal loan ?

Accepted Answer

No, there are no upfront fees required to apply for a personal loan or to process your application in Malaysia. iMoney services are completely free to its customers. Do contact the authorities if you have been asked by anybody to pay such fees. Be informed and read our article about loan scams in Malaysia.(https://www.imoney.my/articles/avoid-online-scams)

Question 20

What are the factors that affect my personal loan approval ?

Accepted Answer

There are a number of factors that affect your chances of being approved for a loan. These include:
1. Your history of paying bills and other loans
2. The types of other loans and credit cards that you own
3. The length of your credit history
4. The number of loan applications that you have made over the last 12 months
5. Any legal action that has been taken against you
All of these factors are calculated as part of your credit score. To learn more, read our article on everything you need to know about your credit score.(https://www.imoney.my/articles/everything-need-know-credit-score)

Question 21

Can I get personal loan if I am an expat ?

Accepted Answer

As we are unable to process personal loan applications for expats, we advise you to visit a bank branch to apply. However, you can apply for certain credit cards with us. Compare and apply for a credit card (https://www.imoney.my/credit-card)that best fits your needs and eligibility.

Question 22

Can I get a personal loan if I am unemployed ?

Accepted Answer

As most banks require some proof of income, getting a personal loan without a job can be difficult. Even if you get approved, the loan terms and interest rates you receive may not be the best as financial institutions tend to offer better terms and rates for customers with a good credit score (https://www.imoney.my/credit-score)and the employed.

Question 23

Can I get a personal loan if I am still a student ?

Accepted Answer

The minimum age requirement for a personal loan in Malaysia is 18 years old. However, you will need to have a consistent stream of income in order to qualify for a loan. You are eligible to get a personal loan if you fulfill all the criteria below:
 • Aged 18 and above
 • Have an income slip for at least 6 months, with an employment letter

Question 24

Will a personal loan affect my credit score ?

Accepted Answer

Yes it will. If you meet your monthly commitments without fail, a personal loan can improve your credit score. However, if you miss your monthly payments it may also have a negative impact on your credit score.

Question 25

Can I use a personal loan for debt consolidation ?

Accepted Answer

Yes, personal loans are suitable for debt consolidation.

Question 26

What does these common personal loan terms mean ?

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