What are the Best Low APR Personal Loans in Malaysia?
Key Takeaways:
APR represents the annualized interest rate and associated fees on loans and credit cards. It’s a valuable tool for comparing loan and credit card options.
Some of the popular low APR personal loans in Malaysia include Alliance Bank personal loan, CIMB Cash Plus personal loan, Hong Leong personal loan, HSBC Amanah Personal Financing-i, and RHB personal loan.
To secure a low APR personal loan in Malaysia, you must compare loan options, demonstrate high savings or net worth, improve your credit rating, and more.
Searching for the best low-APR personal loans in Malaysia? Congratulations, you’ve come to the right place!
Finding the best low-APR personal loans in Malaysia is essential to help you save big on your borrowing endeavors.
Join us as we delve into low-APR personal loans in Malaysia, uncovering the finest options tailored to your financial needs.
What is the Annual Percentage Rate (APR) in Malaysia?
The Annual Percentage Rate (APR) represents the annualised interest rate and associated fees charged by a financial institution on a loan, credit card, or other forms of credit.
It tells you the percentage of the borrowed amount that you’ll pay in interest and fees over the year.
For instance, if you have a loan with a 10% APR and you borrowed RM5,000, you would pay RM500 in interest and fees over the span of a year.
This RM500 is in addition to repaying the principal amount of RM5,000.
Additionally, APR serves as a valuable tool for consumers to compare different loan options or credit cards.
Since it accounts for both interest rates and associated fees, it offers a comprehensive view of the cost of credit across various financial products.
What are the Popular Low APR Personal Loans in Malaysia?
Here are some well-known personal loans in Malaysia that tends to offer competitive APRs:
Alliance Bank Personal Loan
Loan amount: RM 5,000 to RM 200,000
Loan tenure: 12 to 84 months
Interest rate: 4.99% p.a. to 8.70% p.a.
CIMB Cash Plus Personal Loan
Loan amount: RM 2,000 to RM 100,000
Loan tenure: 24 to 60 months
Interest rate: 4.38% p.a. to 19.88% p.a.
Hong Leong Personal Loan
Loan amount: RM 5,000 to RM 250,000
Loan tenure: 24 to 60 months
Interest rate: 5.50% p.a. to 7.50% p.a.
HSBC Amanah Personal Financing-i
Loan amount: RM 50,000 to RM 250,000
Loan tenure: 24 to 84 months
Interest rate: 4.88% p.a.
RHB Personal Loan
Loan amount: RM 2,000 to RM 150,000
Loan tenure: 12to 84 months
Interest rate: 7.05% p.a. to 13.83% p.a.
*The terms will undergo updates to align with the necessary criteria, incorporating relevant data.
How to Get a Low APR Personal Loan in Malaysia
1. Compare Loan Options
First, explore the various personal loan options available in the market. Carefully evaluate these loan options, taking into consideration their benefits and features, to find one that aligns with your specific financial needs and repayment capabilities.
2. Demonstrate High Savings or Net Worth
Financial institutions view clients with high savings or substantial net worth as low-risk borrowers.
A high net worth indicates that the borrower has assets that could be used to repay the loan if necessary, making them a safer bet for financial institutions.
3. Improve Your Credit Rating
Low-interest personal loans are commonly offered to borrowers with excellent credit ratings.
To enhance your creditworthiness, focus on building a solid financial history by making timely payments on existing debts and managing your finances responsibly.
4. Leverage Your Company’s Reputation
Being employed by a reputable organisation, such as a government entity or a well-known large company, can also be beneficial.
Financial institutions often consider the stability and reliability of your income when determining your loan terms.
Employment with a stable and recognised employer can signal financial stability and a steady income, which reduces the risk for the financial institution.
5. Apply for A Larger Loan Amount
While borrowing more might seem risky, larger loans sometimes offer lower APRs.
This is because the administrative costs of processing a loan are spread over a larger amount, reducing the relative cost of the financial institution.
What’s more, larger loans often have more room for negotiation on interest rates.
6. Maintain a Low Debt Service Ratio (DSR)
The DSR is a measure of an individual’s debt burden compared to their income.
A low DSR indicates that a significant portion of a borrower’s income is not already committed to debt repayments, making them more likely to manage additional loan repayments.
Bank prefer clients with low DSRs because they pose a lower risk of default.
How Citywide Advisory can help you
Citywide Advisory, a trusted bank loan and debt consolidation agency in Malaysia, specialises in helping individuals navigate the financial intricacies associated with obtaining a substantial loan.
We offer comprehensive range of loan services that cater to different needs, including:
Personal loan services
SME loan services
Mortgage loan services (for buying a new home, refinancing and cashback purposes)
Collateral loan services
Personalised Loan Consultancy Services in Malaysia
Citywide Advisory is the BEST loan advisory service in Malaysia.
Citywide Advisory also offers personalized loan consultancy services, helping clients understand and improve their rejected loan applications for refinancing housing loans and more.
We customise our loan recommendations based on an individual’s needs, considering factors like:
The specific loan amount you require.
The urgency with which the loan amount is needed.
Whether you or your parents own a property that has been held for over ten years.
Your income level.
Your CTOS score (such as your credit score and credit history).
Our goal is simple: to help you find the right loan solution, paving the way to financial stability and debt freedom.
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