As personal loan in Malaysia is a form of unsecured debt where no collateral and guarantor is needed, banks may have stringent criteria when assessing your loans applications. Here are some tips to help you get your loans approved easier.
Requirements
The typical requirement for Malaysian bank personal loan application would be anyone from age of 21 to 60 at the end of loan tenure. There is a basic salary requirement for personal loan applications. This is usually stated in the product sheet. Typically, you can loan up to 5 times of your gross income however this may vary from types of loan packages and banks.
Malaysian banks usually provide loan to Malaysian citizens only. Some banks do provide loans for permanent residents and foreigners. At the time of writing, the maximum period for personal loan would be 10 years. This loan repayment period may vary from bank to bank.
Documentation
All your documents must be ready for the application process. Fill up and understand the loan that you are applying for. For a start here are some typical documentations required
For salaried employee
- Identity Card , Photocopy on both sides
- Latest BE form and tax receipts
- Latest 3 months salary slip
- Latest 6 months saving accounts transactions
For self employed
- Identity , photocopy on both sides
- Latest BE form and tax receipts
- Copy of business registration
- Latest 6 months saving accounts transactions
CCRIS
Obviously CCRIS vital as part of bank assessment before approving any type of loans. You should have your CCRIS information in place before applying for any loans. This is done by using any credit facilities provided by bank. You should have at least 1 year of CCRIS data. Having no CCRIS data as bad because banks will have no data to review. This may cause your application to be rejected.
To maximize you chance of getting approved, it is very important to pay all your debts on time. This will give back the impression of prompt payer. One rule of thumb is never to make 2 months of late payment. This will get your loan application rejected immediately.The amount that you owed in total to other banks is also taken into consideration. Having too much commitment compared to your income will mean a higher risk for bank thus will decrease your chances of getting loan approved.
CCRISS data is only kept at 12 months cycle. Which means that anything beyond the 12 months will actually be deleted. If your loan is rejected due to bad CCRISS record, you can make prompt payment and reapply for your loan again after 12 months.
