Although all 15 Malaysian banks offer unsecured loans, their TAT varies from under 24 hours to five business days. The criterion for financing typically includes borrower credit history, credit score, income level, and monthly commitments to determine the borrower’s ability to repay before they can lend.

Our research shows that Alliance Bank, Maybank, and MBSB have the lowest interest and profit rates for personal loans. However, consider using our personal loan calculator to compare interest rates and other loan terms.

Most banks in Malaysia utilize automated online systems and can process loan applications for personal loans within 24 hours, but some can take up to five business days.

Therefore consider using LoanPanda to compare personal financing loan approval times to find the best personal loan turnaround time. Also, do not give up on personal loans if one bank rejects your application. You can submit other applications to one or two competing banks with low-interest rates.

You can calculate the instalment repayment manually by multiplying the principal amount with the interest rate and the loan tenure to generate the total instalment. Add the principal amount to the total derived instalment to establish the total borrowed amount. Divide the total amount of borrowed amount by the total number of months in your loan tenure to establish the monthly repayment amount.

Alternatively, you can use LoanPanda’s personal loan calculator to calculate the monthly repayment. Therefore, consider calculating the instalment on different loan amounts before filling in the ideal amount in your loan application.

Malaysian banks do not extend unsecured loans to foreigners. However, they can get a personal loan by applying for secured loans if they have a guarantor or an asset as collateral.

1. Create a positive credit history by accruing positive debt and paying it on time.

Banks consider your credit history a significant eligibility factor for a personal loan application approval. They can access your credit report via tools like the Central Credit Reference Information System (CCRIS) and the Credit tip-off service (CTOF). A poor credit history portrays you as a high-risk borrower, unlikely to meet your monthly instalment payment.

In the absence of a flat interest rate, banks charge individuals with a poor credit history a higher interest rate per annum. Therefore, consider building your credit history by applying for other loans and credit cards and paying the accrued debt on time.  

Besides comparing bank loan interest rates, Loanpanda has financial consultants and online calculators to help you compare credit card options with low-interest rates. Also, you can compare the rewards available to different credit card holders, including cashback.

2. Take steps to improve your credit score

You can take several steps to improve your credit score. First, avoid applying for multiple credit lines at a go after rejection, as this flags you as a high-risk borrower. Second, develop a strategy to pay off your debts, starting with the smaller debts and progressing towards larger debt; you can consolidate your credit when the terms are favorable. 

Third, verify that the information on your credit score report is accurate. Fourth, avoid late payments, as any amount delayed by as little as two months lowers your credit score.

3. Regulate your debt service ratio

The debt service ratio (DSR) is a calculation to determine whether you can afford to make monthly payments on the loan amount. Banks examine monthly expenses and commitments against monthly income while evaluating personal loan applications. 

Too many debts against your income shrink your income significantly and depict that you cannot afford the monthly repayment on a personal loan based on your current income.

4. Build Your Credit History

Lacking a credit history is as bad as having a poor credit history. Malaysian banks and other financial institutions give low-interest credit cards to citizens aged 19 and above. You can register as a supplementary card holder with a responsible adult and leverage their positive credit score to grow yours.