Personal loans, compared by what they really cost
What each loan would cost you
Optional. Leave at 0 to ignore.
7 of 12 loans fit RM20,000 over 5 years, cheapest first at each bank's highest advertised rate, the one you can count on. The cheapest, BSN Personal Loan, costs RM14,580 less over the loan than the dearest, CIMB Personal Cash Loan, at each bank's highest rate.
Why two rates? A flat rate charges interest on the full amount for the whole loan, even as you pay it down. 4.6% flat on BSN Personal Loan is really about 8.47% a year on what you still owe. The true yearly rate is the fair way to compare, so we show both. Each bank sets your own rate within its range.
- 1
BSN Personal Loan
BSN (Bank Simpanan Nasional)
RM421.67
From RM410.00 if you get its lowest rate
RM5,300
From RM4,600
4.6% to 5.3% flat
8.47% to 9.67% a year
- 2
Maybank Personal Loan
Maybank
RM466.67
From RM441.67 if you get its lowest rate
RM8,000
From RM6,500
6.5% to 8% flat
11.68% to 14.13% a year
- 3
Maybank Skim Pembiayaan Peribadi-i
Maybank · Islamic financing
RM466.67
From RM441.67 if you get its lowest rate
RM8,000
From RM6,500
6.5% to 8% flat
11.68% to 14.13% a year
- 4
Hong Leong Personal Loan
Hong Leong Bank
RM508.33
From RM475.00 if you get its lowest rate
RM10,500
From RM8,500
8.5% to 10.5% flat
14.93% to 18.05% a year
- 5
AmBank Personal Loan
AmBank
RM533.17
From RM414.67 if you get its lowest rate
RM11,990
From RM4,880
4.88% to 11.99% flat
8.95% to 20.31% a year
- 6
Alliance Bank Personal Loan
Alliance Bank
RM628.00
From RM416.50 if you get its lowest rate
RM17,680
From RM4,990
4.99% to 17.68% flat
9.14% to 28.51% a year
- 7
CIMB Personal Cash Loan
CIMB Bank
RM664.67
From RM406.33 if you get its lowest rate
RM19,880
From RM4,380
4.38% to 19.88% flat
8.08% to 31.52% a year
Not ranked for these figures
These loans are still listed, with the reason they are not in the ranking above.
BSN Personal Financing-iTop rate not published
The bank publishes only a starting rate of 4.6% flat, not the highest rate it charges, so we cannot rank it fairly. Bank's page (opens the bank's site)
HSBC Amanah Personal Financing-iTop rate not published
The bank publishes only a starting rate of 3.88% flat, not the highest rate it charges, so we cannot rank it fairly. Bank's page (opens the bank's site)
MBSB Personal Financing-iVariable rate
The bank quotes a variable rate, so a fixed monthly payment cannot be worked out without guessing. It lists 3.06% as its starting rate. Bank's page (opens the bank's site)
RHB Personal Financing-iVariable rate
The bank quotes a variable rate, so a fixed monthly payment cannot be worked out without guessing. It lists 7.62% as its starting rate. Bank's page (opens the bank's site)
RHB Personal LoanVariable rate
The bank quotes a variable rate, so a fixed monthly payment cannot be worked out without guessing. It lists 7.62% as its starting rate. Bank's page (opens the bank's site)
Every loan, side by side
The true yearly rate depends on how much you borrow and for how long, so the column below uses one example: RM20,000 over 5 years. Use the calculator above for your own figures.
Alliance Bank Personal Loan
Alliance Bank
- 4.99% to 17.68% flat
- 9.14% to 28.51%
- RM5,000 to RM200,000
- 1 to 7 years
- RM3,000 a month
- 5 days
- 1% of the loan
- 3% of the balance owed
AmBank Personal Loan
AmBank
- 4.88% to 11.99% flat
- 8.95% to 20.31%
- RM2,000 to RM150,000
- 1 to 7 years
- RM3,000 a month
- 5 days
- 1.5% of the loan
- 3% of the balance owed
BSN Personal Financing-i
BSN (Bank Simpanan Nasional) · Islamic
- From 4.6% flat
- 8.47%
- RM5,000 to RM400,000
- 1 to 10 years
- RM1,500 a month
- 5 days
- 1% of the loan
- No fee, ibra' rebate
BSN Personal Loan
BSN (Bank Simpanan Nasional)
- 4.6% to 5.3% flat
- 8.47% to 9.67%
- RM5,000 to RM400,000
- 1 to 10 years
- RM1,500 a month
- 5 days
- 1% of the loan
- 3% fee
CIMB Personal Cash Loan
CIMB Bank
- 4.38% to 19.88% flat
- 8.08% to 31.52%
- RM2,000 to RM100,000
- 2 to 7 years
- RM2,000 a month
- 1 day
- 1% of the loan (waived for certain priority tiers)
- 5% fee
Hong Leong Personal Loan
Hong Leong Bank
- 8.5% to 10.5% flat
- 14.93% to 18.05%
- RM5,000 to RM250,000
- 2 to 5 years
- RM2,000 a month
- 3 days
- None listed (varies, confirm latest with HLB)
- 4% fee
HSBC Amanah Personal Financing-i
HSBC Malaysia · Islamic
- From 3.88% flat
- 7.21%
- RM6,000 to RM250,000
- 2 to 7 years
- RM8,500 a month
- 3 days
- None listed
- No fee, ibra' rebate
Maybank Personal Loan
Maybank
- 6.5% to 8% flat
- 11.68% to 14.13%
- RM5,000 to RM100,000
- 2 to 6 years
- RM3,500 a month
- 3 days
- None listed
- 3% fee
Maybank Skim Pembiayaan Peribadi-i
Maybank · Islamic
- 6.5% to 8% flat
- 11.68% to 14.13%
- RM5,000 to RM100,000
- 2 to 6 years
- RM3,500 a month
- 3 days
- None listed
- No fee, ibra' rebate
MBSB Personal Financing-i
MBSB Bank · Islamic
- From 3.06% variable
- Not worked out (variable rate)
- RM5,000 to RM250,000
- 1 to 10 years
- RM3,000 a month
- 3 days
- 1% of the loan
- No fee, ibra' rebate
RHB Personal Financing-i
RHB Bank · Islamic
- From 7.62% variable
- Not worked out (variable rate)
- RM2,000 to RM150,000
- 2 to 7 years
- RM3,000 a month
- 2 days
- 1% of the loan
- No fee, ibra' rebate
RHB Personal Loan
RHB Bank
- From 7.62% variable
- Not worked out (variable rate)
- RM2,000 to RM150,000
- 2 to 7 years
- RM2,000 a month
- 2 days
- 1% of the loan
- 3% fee
Every row is checked against the bank's own product page, between and . Rates can change without notice; confirm with the bank before you apply.
Flat rate or effective rate: which one is the real cost?
Most Malaysian personal loans are advertised at a flat rate. The bank multiplies the amount you borrowed by the rate and by the number of years, adds that to the loan, and divides by the months. It never lowers the interest as you repay.
Here is the sum for RM20,000 over 5 years at 5%flat. This rate is a round number to show the method, not a bank's offer.
- Interest: RM20,000 × 5% × 5 years = RM5,000.
- Monthly payment: (RM20,000 + RM5,000) ÷ 60 months = RM416.67.
- The same 5% charged on the balance you owe would be RM377.42 a month. Flat costs RM2,355 more over the loan.
- The true yearly rate for the flat loan is about 9.15%, not 5%.
We work out the true yearly rate with the formula in the Seventh Schedule of the Hire-Purchase Act 1967, which converts a flat rate into an annual rate. It was written for hire purchase, so for a personal loan it is a close estimate, not a figure your bank prints. Use it to compare loans with each other, then ask the bank for its own effective rate.
DSR: the number that decides how much a bank will lend you
Your debt service ratio (DSR) is what you repay on debts each month, divided by your monthly income. Banks use it to decide how much new borrowing you can carry. The banks on this page list DSR limits between 60% and 70%.
Take RM5,000 of monthly income and RM1,200 of existing repayments. Your DSR today is 24%. At a 60% limit, that leaves room for RM1,800 a month of new repayments. A loan costing RM416.67 a month would take your DSR to 32.33%. Banks differ on whether they use gross or take-home income and which commitments they count, so treat this as a guide and ask your bank.
Fees to watch besides the rate
- Processing fee. 8 of 12 loans list one, up to 1.5% of the loan. On RM20,000 that is RM300.
- Stamp duty. The loan agreement is stamped at RM5 for every RM1,000 or part of RM1,000 (0.5%) under the Stamp Act 1949. On RM20,000 that is RM100.
- Early settlement. 5 of 12 loans charge nothing to settle early. The rest charge up to 5%, so a loan with a slightly lower rate can cost more if you plan to clear it early.
Add these to the interest before you compare. Because the fees differ, two loans with the same rate can cost different amounts.
Islamic personal financing: what is different
5 of the 12 loans here are Islamic financing, and the banks list this contract: tawarruq. On an Islamic product the rate may be called a profit rate rather than interest. Islamic loans quoted at a flat rate are ranked in the calculator above exactly like the others. Those quoted at a variable rate are listed but not ranked, because a fixed monthly payment cannot be worked out for them.
5 of them list an ibra' rebate on early settlement: a discount on the profit that has not yet been earned, in place of a settlement fee. Tick “Islamic financing only” in the calculator to see just these.
Some of the loans are priced for a particular group, such as civil servants, or for people with a salary-deduction arrangement. Check the bank's page for who qualifies. The longest repayment period listed is 10 years (BSN Personal Financing-i).
Questions people ask
+Which personal loan in Malaysia has the lowest interest rate?
Of the 12 loans on this page, the lowest flat rate listed is 3.88% on HSBC Amanah Personal Financing-i (HSBC Malaysia). On RM20,000 over 5 years that is about 7.21% a year on the balance you owe. MBSB Personal Financing-i lists a lower starting figure of 3.06%, but it is a variable rate, so we cannot turn it into a fixed monthly payment. Rates are shown as ranges, and the bank sets your own rate within its range.
+What is the difference between a flat rate and an effective rate?
A flat rate charges interest on the full amount you borrowed for the whole loan, even though you repay part of it every month. An effective rate charges interest only on what you still owe. For example, RM20,000 at 5% flat over 5 years means RM5,000 of interest and RM416.67 a month, which works out to about 9.15% a year on the balance you owe.
+What income do I need for a personal loan?
It depends on the bank. Among these 12 loans the minimum monthly income runs from RM1,500 (BSN Personal Financing-i) to RM8,500 (HSBC Amanah Personal Financing-i). Meeting the minimum does not guarantee approval: the bank also checks your existing debts against your income.
+What is DSR and why does it matter?
DSR, or debt service ratio, is the share of your monthly income that goes on debt repayments. The banks here list a DSR limit of 60% to 70%, so a new loan is declined or cut down if your total repayments would go above it. With RM5,000 of monthly income and RM1,200 of existing repayments, your DSR is 24%.
+Will I pay a fee if I settle my personal loan early?
5 of the 12 loans that list early settlement terms charge no fee, and the rest charge up to 5%. 5 Islamic loans here give an ibra' rebate instead, a discount on the profit the bank has not yet earned. Check the table above and the bank's own page before you sign.
+How much stamp duty do I pay on a personal loan?
The Stamp Act 1949 sets duty on a loan agreement at RM5 for every RM1,000 or part of RM1,000, which is 0.5%. On RM20,000 that is RM100. Ask the bank whether it is taken from the money you receive or added to the loan.
+How long does approval take?
The banks here list 1 to 5 days for approval, depending on the loan. Approval time is the bank's own figure and starts when your documents are complete.
Where the figures come from
- Stamp Act 1949 (Act 378), First Schedule · item 27(a)(iii), RM5 per RM1,000 on a loan
- Hire-Purchase Act 1967 (Act 212) · Seventh Schedule, the formula that turns a flat rate into an annual rate
- Alliance Bank Personal Loan, Alliance Bank · the bank's own product page
- AmBank Personal Loan, AmBank · the bank's own product page
- BSN Personal Financing-i, BSN (Bank Simpanan Nasional) · the bank's own product page
- BSN Personal Loan, BSN (Bank Simpanan Nasional) · the bank's own product page
- CIMB Personal Cash Loan, CIMB Bank · the bank's own product page
- Hong Leong Personal Loan, Hong Leong Bank · the bank's own product page
- HSBC Amanah Personal Financing-i, HSBC Malaysia · the bank's own product page
- Maybank Personal Loan, Maybank · the bank's own product page
- Maybank Skim Pembiayaan Peribadi-i, Maybank · the bank's own product page
- MBSB Personal Financing-i, MBSB Bank · the bank's own product page
- RHB Personal Financing-i, RHB Bank · the bank's own product page
- RHB Personal Loan, RHB Bank · the bank's own product page
This is general information to help you compare, not financial advice. theringgit is not paid by any bank on this page, and the order of every table is set by the numbers shown.