Personal loans can be used not only to bridge person cash needs, but also small business needs. Sole proprietors may find these small business loans useful to fund business expansions, fulfill short term cashflow needs, or even to jumpstart a new business venture. The banks and products selected offer larger loan amounts, longer loan tenure or favourable interest rates to high-credibility borrowers for the purpose of doing business.

A credit card is a card issued by a bank that allows its owner to pay for goods and services with merchants that allow card payments. The way it works is that each credit card has a set limit of funds (credit) that you can access through the card, which you can use in advance to purchase goods and services and pay back the funds at the end of the month or according to the repayment schedule with or without interest charges.

Table of Contents What is a debt service ratio? What is a good DSR to have? Calculating your DSR How will DSR affect you home loan approval Improving your DSR Know your DSR before you take on more debt Do you have your eye on a dream home or car? Thinking of taking out a loan to finance it? Well, you might want to take a step back first as different banks have different debt service ratio (DSR) limits. As such, you will probably want to do a little research first to avoid getting your home loan rejected. What is a debt service ratio? Source: BNM At first glance, DSR is fairly easy to define. It is what proportion of your household income goes into paying debt. In general, it is a measure of a person’s ability to manage and settle their debt. There is growing concern that many Malaysians are committing too much of their household income to paying debt. By 2019, nearly 30% of Malaysians have over 60% debt service ratio. This high DSR for household borrowers led to concerns among lawmakers about Malaysians being prone to bankruptcy risks in the event of interest rate increase, job loss, or inflation. By 2024, the rate of borrowers with over 60% DSR has come down to 27% but that means more than a quarter of Malaysian households are still at risk. Why is having over 60% DSR risky? How does it relate to your monthly disposable income? Understanding how they are connected is a key part of your financial health. Your DSR is one of the three major factors that affect your risk profile as a borrower. What is a good DSR to have? If you want to get your hands on some new property, your DSR should generally not exceed 30%. While this is a rule of thumb and not written in stone, for the most part, banks are very unlikely to favour borrowers that exceed this limit. Some banks may accommodate borrowers with a DSR of up to 70%, but this is at the extreme end of the spectrum as it is extremely risky to be spending that much of your income on servicing loans. Ideally, you will want to keep your DSR at around 30% to be safe. Banks utilise your DSR to help them determine how much of your income is being used to pay off your debts and other obligations. It is also used to determine if you are in a good enough position to afford taking up the housing loan you are applying for. Having a low DSR signals to banks that you are more likely to be able to pay back your monthly instalments on time and that there is a lower risk of you defaulting on said payments. Calculating your DSR Figuring out your DSR is rather easy. All you need to do is divide how much debt you owe each month by your net income. This amount is then expressed as a percentage. You can also follow this formula: DSR % = Debt ÷ Net Income X 100 Debt refers to the total of all your existing financial obligations. These can include credit card repayments, personal loans and student loans. On the other hand, net income refers to your income after deductibles, such as income tax and EPF contributions. Let’s assume your household income is RM8,000 per month (this can be the income of a single professional worker or the total combined income of a couple). After deducting EPF, income tax and SOCSO, you should get a net income of approximately RM6,500. Therefore, in order to meet a DSR of 30%, your household’s total debt cannot exceed RM1,950. How to calculate your DSR DSR of 30% = RM1,950/RM6,500 X 100 Now let us assume that you have the following monthly financial obligations: Car loan: RM500 Credit card repayments: RM400 PTPTN Loan: RM100 Total financial debt = RM1,000 So if your gross household income is at RM8,000 and your net income is approximately RM6,500; then when you take up a new housing loan, your monthly home loan instalment figure should not be more than RM950. How will DSR affect you home loan approval The maximum DSR limit varies widely from one bank to another. Even within the same bank, there could be different guidelines depending on what kind of loan you are applying for, resulting in different DSR requirements. For first time home-buyers, you should be in a good spot if your DSR is within the 30% range. The last thing you want to be doing is dedicating almost all of your income for housing expenses, leaving no room for savings. If you are still unsure of what you are getting yourself into, you can utilise iMoney’s home loan calculator to calculate monthly repayments, interest charges, and other details on your own. Improving your DSR The lower your DSR, the better! The best thing to do is to play it safe and keep your DSR as low as possible. This way, you are far less likely to form a history of loan rejections. You can improve your DSR in one of two ways: Reducing your debt The most straightforward way is to cut down on your spending to reduce your total debt or find a way to increase your net income. For reducing debt, you could try identifying credit card spending that is unnecessary and cut down on it to increase your DSR. You also should not take for repayments of non-bank debts for granted either as banks will look at these repayments in the same way as other bank debts. You can also consider using debt consolidation in order to reduce your monthly payments. Increasing your net income Increasing your net income is a little trickier, as it requires you to either find a secondary source of income, or seek a pay rise from your job. If you are not sure where to start, we have a simple guide with a few tips on how to go about asking for a promotion. Combined income with spouse Another method to improve your DSR is by combining your income as “joint purchasers” with a spouse or partner in your loan submission. However, make sure that the both of you fully understand your individual legal rights as joint-purchasers. Know your DSR before you take on more debt To summarise, before you go out and apply for a new housing loan, always calculate your DSR beforehand. Figure out your net income, expenses and total debt in order to figure out how much you will be able to comfortably spend on instalments. Finally, do some background research to find out which banks have the best loans that fit your DSR overall financial situation. Keep all these in mind and you can avoid the dreaded rejection on your loan application.

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 and the employed.

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).

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.

There are a number of factors that affect your chances of being approved for a loan. These include: Your history of paying bills and other loans The types of other loans and credit cards that you own The length of your credit history The number of loan applications that you have made over the last 12 months 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.

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.

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).

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.

Yes, personal loans are suitable for debt consolidation.

It’s quick and simple: 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. Click “Apply” on the personal loan that you would like to apply for and fill out the application form (your basic and employment info). We’ll get in touch with you within 1 business day to help you process and submit your application. You will hear from the bank or provider on your application status.

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.

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.

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 for more information.

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

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 that best fits your needs and eligibility.

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 to compare and apply for the personal loan which fits your needs and eligibility.

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.

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.

The best personal loan for you is one that meets your needs and will not financially burden you. Use our iMoney Personal Loan Calculator to find what you need.

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

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 which can process your application and disburse the loan to you within 48 hours.

The interest rate of a personal loan depends on several factors including your income, employment status, and credit score. Use our personal loan calculator to find the personal loan that best fits your needs and eligibility.

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.

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 above to find which financial institution offers a personal loan that you are eligible for.

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.