Personal loan in Malaysia: what it is and how to apply

Personal loans provide a flexible cash solution for everything from emergencies to debt consolidation. Before applying, here are a few factors to keep in mind when considering the best personal loan in Malaysia for your needs. In this guide, key loan types, eligibility requirements, and factors to consider are covered, including why options like CashLoan on TNG eWallet may appeal to borrowers looking for easy loan application process.  

What is a personal loan?  

A personal loan is a lump sum of money disbursed by a bank or licensed lender. You then repay the amount through monthly instalments including interest over an agreed tenure. These loans are generally flexible and are commonly used for major expenses such medical bills, home renovations, and education costs. 

What are the different types of personal loans? 

There are two types of personal loans: unsecured and secured loans, and the main difference is whether collateral is required.  

Most borrowers opt for unsecured loans because no collateral is required. Secured loans on the other hand, require collateral such as your house or car. These loans carry higher risk for the borrower, as the lender may seize the asset if repayments are not met. However, they typically offer lower interest rates in return. 

What are the requirements needed to apply for a personal loan in Malaysia? 

Malaysians, permanent residents, and foreigners between the ages of 21 to 60 years old are all eligible to apply for personal loans if they: 

• Are currently employed in the public or private sector or self-employed. 

• Have a stable source of income, whether through a fixed salary, contract work, or commissions 

• Maintain a healthy credit score history 

• Reside at a valid residential address, whether owned, rented, or with family. 

Essential documentation for personal loan application 

Besides your IC and application form, you’ll likely need to prepare some documentation that shows proof of the above requirements. While requirements vary by bank, having these ready may significantly speed up your approval process: 

• The latest 6 months of salary slips, EPF statement, bank statements, and commission slips. 

• Latest BE and EA forms with tax receipts 

• Employment or work offer letter or employment contract 

• A track record of payments for any existing loans  

• Utility bills as proof of residential address  

For those who are self-employed, you must also include: 

• Business Registration Certificate (SSM) 

• Professional licenses 

• Company bank statements 

• Proof of active business operations 

Meanwhile, senior citizens are typically required to provide copies of their pension statements or returns in addition to the general requirements.  

Note: Every lender has slightly different prerequisites. Always check with your specific bank or licensed financial institution for their latest checklist before submitting your application. 

What to look out for when applying for a personal loan in Malaysia 

If you’re feeling overwhelmed and unsure how to decide what’s the best personal loan in Malaysia for you, here’s a guide on what to look out for:  

Interest rates 

Borrowing money comes with a cost:  the interest rate. They are typically fixed, meaning the percentage of interest rate won’t change over the loan tenure.  

Loan term 

The loan term is the duration in which you would need to repay the loan. This can range from 1 to 7 years for unsecured personal loans. For secured personal loans, the repayment term can sometimes be extended up to 10 years.   

Late fee  

If you fail to pay your monthly instalments on time, a penalty fee is imposed. This fee is calculated as a percentage of your remaining loan balance. 

Handling fees 

Some lenders may include an upfront administrative fee for processing the loan. Not all banks or lenders charge these fees, so make sure to read the fine print before applying to see if these costs are included.  

Stamp duty 

The stamp duty fee is government-mandated on all legal documents. It ensures that the agreement is legally binding and enforceable. These charges are usually calculated as a percentage of the total loan amount and deducted directly from the loan before disbursement. The rates are typically fixed at 0.5%.  

Why CashLoan is one of the best personal loan options in Malaysia 

For many Malaysians, the best loan isn’t just about the lowest rates, it’s about finding a solution that fits their specific financial situation. TNG eWallet’s CashLoan offers a seamless digital application process and flexible income requirements suitable for a wide range of borrowers. Here’s why it stands out as a premier choice in the market. 

Easily accessible for low-income levels  

CashLoan is widely considered the best personal loan in Malaysia for borrowers with low-incomes. Through its partnership with CIMB e-Zi Tunai, the minimum income requirement is just RM1,400 per month, making it accessible to fresh graduates and gig workers.  

Flexible loan amounts and tenures 

CashLoan provides fast cash loans for minor emergencies without forcing borrowers into larger, long-term debt than they need. While most banks set their minimum loans at RM1,000 or RM5,000, CIMB Bank allows borrowing from as little as RM100.  

For larger sum, the maximum loan is up to RM150,000, with competitive rates starting from 4.99% p.a through Alliance Bank. Borrowers can also choose flexible tenures, from as short as one week to as long as 7 years.  

A fully digital and queue-free experience  

An easy application process is often a priority when looking for the best personal loan in Malaysia. CashLoan offers a 100% digital application process within your TNG eWallet, meaning no physical paperwork, guarantor, and collateral is required. Applications submitted online through the app can be disbursed within 24 hours. 

No hidden fees 

CashLoan has no processing fees and often no early settlement penalties, meaning you only pay for what you borrow. All costs, including interest rates and monthly instalments, are clearly displayed before you tap “Accept.” 

How to apply for a personal loan online in Malaysia with CashLoan 

Submitting a loan application is straightforward:  

• Open your eWallet and tap “CashLoan”. ​Key in the loan amount, tenure, and monthly income to calculate eligibility, then tap “Confirm”. 

• Complete the loan form and upload your income documents. 

• You’ll receive a message when your loan is approved. Review and accept the offer, then confirm with your 6-digit PIN.  

• Once confirmed, the loan will be disbursed into your selected account.​ 

Get fast loan approvals with CashLoan 

Selecting the best personal loan in Malaysia ultimately involves balancing speed with affordability. CashLoan provides a fully digital, hassle-free experience with quick approvals. Before applying, ensure your documentation is ready and your repayment plan is clear so you can borrow confidently. 

Once your debts are settled, the next step in your financial journey is to put your capital to work through the with the right investment plan in Malaysia. Check out our comprehensive guide on Investing vs. Saving in Malaysia to explore transitioning from storing cash to building long-term financial security. 

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