Five Simple Steps To Getting A Personal Loan

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While it may seem daunting, applying for a personal loan is actually a very simple process.

Need cash to get that new ride or purchase that Euro trip you’ve been dreaming of, but put off by the tedious process of applying for a personal loan? You’re in for a surprise. While it may seem daunting, applying for a personal loan is actually a very simple process.

Here are five simple steps to kickstart your personal loan application:

1. Research and Compare Your Options

Getting a personal loan is similar to picking the right car to buy. Before settling on one, you have to first conduct a thorough research. With personal loan, it is the same. There are many things to consider including interest rates, fees & charges, your personal requirements and so on.

For starters, use comparison websites like www.iMoney.my whenever possible as websites like these compile information from various sources and present them in user-friendly formats, saving you time and effort from research. Often, these websites also include useful guides and tips on what you need to know before landing yourself a personal loan.

2. Assess Your Personal Financial Situation

After gathering this information, compare the best options available to you with your personal situation. Have a gauge of how much you need to pay on a monthly basis, how long it will take to completely pay off the loan, and whether your personal finances allows for such a loan. Settle on the one that most addresses your unique circumstances.

3. Locate the Appropriate Application Form

Often, banks make available their personal loan application forms on their websites. Alternatively, you could personally visit a branch, or arrange for a bank representative to meet you in person. Some banks may even allow phone or online applications, which would further simplify the application process.

4. Read the Fine Print & Confirm the Numbers

It is wise to confirm your monthly repayment, loan term, and other miscellaneous charges together with your banks prior to signing any loan agreement. Look carefully through the terms of the loan as mistakes can happen. It is also advisable to spend a couple of minutes scanning the fine print to ensure you’re not caught by surprise in future.

5. Submit the Required Loan Documentations

Finally, get ready all the necessary documentations needed in order for your loan to be approved. Below is a list of documents that are generally required by banks:

If you are a salaried employer

A completed application form
A copy of your identification card or permanent resident document
A copy of your current or previous month’s pay slip OR bank statement showing salary credited into your account OR Form BE with tax receipt of payment OR EA / EPF statement.

If you are self-employed

A completed application form
A copy of your identification card or permanent resident document
A copy of your Latest Form BE with tax receipt of payment
Copies of business registration Certificates

Note that these are just the general documentations needed. Depending on the banks and other factors, more documents may be needed before the loan is approved.

The approval period of a personal loan can differ between banks, depending on the borrower’s credit history and the type of loan applied (secured or unsecured).

Ready to apply for a personal loan? Find out which bank offers the lowest interest rate in Malaysia.

Alternatively, you can check personal loans of each bank individually:

Compare personal loan offers of all major Malaysian banks: