Planning a dream wedding, funding your child’s education, or need to consolidate high-interest debt? A personal loan can be a powerful financial tool to help you achieve your goals. But before you commit, it’s crucial to understand exactly how much it will cost you.
That’s where our Personal Loan Calculator for Malaysia comes in.
This simple tool is the first step in your journey. It helps you instantly estimate your monthly instalments so you can see how a loan fits into your budget. But we want to do more than just give you a calculator. This comprehensive guide will walk you through everything you need to know about personal loans in Malaysia, from understanding interest rates to getting your application approved.
Monthly Payment
Total Payment: RM11,281
Total Interest: RM1,281
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Your Personal Loan?
Click here to apply for your personal loan and get the funds you need.
1. Features
- Accurate Calculations – Get instant estimates for your monthly payments, total interest, and loan costs.
- Flexible Inputs – Adjust loan amount, interest rate, and term to compare different scenarios.
- Detailed Breakdown – See a clear amortization schedule with principal and interest distribution.
- User-Friendly – Works seamlessly on desktop and mobile for quick financial planning.
2. How to Use
- Enter Loan Amount – Input the total loan you wish to borrow.
- Set Interest Rate – Add the annual interest rate for your loan.
- Choose Loan Term – Select the repayment period (months or years).
- Click Calculate – Instantly see your estimated monthly payments and total loan cost.
- Compare & Plan – Adjust inputs to explore different repayment options.
Understanding Personal Loans in Malaysia
To make the best decision, you need to speak the language of loans. Let’s break down the key concepts.
Conventional vs. Islamic Personal Financing
In Malaysia, you have two main options. It’s important to know the difference:
- Conventional Personal Loan: This is a standard loan where you borrow money and pay it back with interest. The interest rate can be fixed or variable.
- Islamic Personal Financing: This option operates on Shariah principles. Instead of charging interest (riba), which is forbidden, it uses concepts like Bai Al-Inah (sale and buy-back) or Tawarruq (commodity sale). You’ll see a “profit rate” instead of an interest rate, but for calculation purposes, it functions similarly in determining your monthly payments.
Common Personal Loan Terminology
- Principal: The original amount of money you borrow.
- Interest / Profit Rate (p.a.): The percentage charged by the bank for lending you the money, calculated per annum (yearly).
- Tenure: The length of time you have to repay the loan, typically ranging from 1 to 10 years.
- Monthly Instalment: The fixed amount you must pay back to the bank every month. This includes both a portion of the principal and the interest.
- Early Settlement Fee: A penalty some banks charge if you decide to pay off your entire loan before the tenure ends. Always check for this in your loan agreement.
- Stamp Duty & Fees: Government tax and bank processing fees that are usually deducted from your approved loan amount.
- Takaful: A Shariah-compliant insurance for Islamic financing that covers your outstanding loan amount in case of death or permanent disability. It’s often recommended or required.
How to Get the Best Personal Loan in Malaysia
Getting a low interest rate isn’t just about luck. It’s about having a strong financial profile. Here’s what banks in Malaysia look at.
Factors That Affect Your Interest Rate
- Credit Score (CCRIS & CTOS): This is your financial report card. Banks check your CCRIS (from Bank Negara Malaysia) and CTOS reports to see your payment history for other loans, credit cards, and bills. A clean record with no missed payments makes you a low-risk borrower, qualifying you for better rates.
- Income & Employment: A stable job with a higher income signals to banks that you can comfortably manage your monthly payments.
- Debt Service Ratio (DSR): This is one of the most important metrics. DSR measures how much of your income is used to service your debt obligations. Most banks in Malaysia prefer a DSR below 60%-70%.
You can calculate your estimated DSR using this formula:
DSR=Net Monthly IncomeTotal Monthly Commitments×100%
- Total Monthly Commitments: Includes your car loan, housing loan, credit card payments, PTPTN, and the estimated instalment of the new loan you’re applying for.
- Net Monthly Income: Your salary after deductions like EPF, SOCSO, and income tax.
Comparison of Personal Loans from Major Malaysian Banks
Here is a sample comparison of popular personal loans in Malaysia.
Disclaimer: The rates and details below are for illustrative purposes only and are subject to change. Please contact the respective banks for the latest information and offers.
| Bank | Product Name | Interest Rate (p.a.) | Min. Monthly Income | Max. Loan Amount |
| Maybank | Maybank Personal Loan | From 6.5% | RM 2,500 | RM 100,000 |
| CIMB Bank | Cash Plus Personal Loan | From 6.88% | RM 2,000 | RM 100,000 |
| Hong Leong Bank | Personal Loan | From 5.50% | RM 2,000 | RM 250,000 |
| RHB Bank | Personal Financing-i | From 7.18% (Profit Rate) | RM 2,000 | RM 150,000 |
| Bank Islam | Personal Financing-i | From 4.25% (Profit Rate) | RM 2,000 | RM 300,000 |
| Alliance Bank | CashFirst Personal Loan | From 5.33% | RM 3,000 | RM 150,000 |
Frequently Asked Questions (FAQ)
1. What is a Personal Loan Calculator?
A Personal Loan Calculator is an online tool that helps you estimate your monthly repayments, total interest, and overall cost for a personal loan. It uses standard amortization formulas to give you a clear picture of your loan obligations.
2. How does the Personal Loan Calculator work?
Simply enter your desired loan amount, the annual interest rate, and the repayment term. Once you click “Calculate,” the tool instantly provides an estimate of your monthly repayment and total loan cost.
3. What information do I need to use the calculator?
You’ll need to input:
- The total loan amount you plan to borrow.
- The fixed annual interest rate offered by your lender.
- The loan duration (in months or years).
4. Is the Personal Loan Calculator free to use?
Yes, our Personal Loan Calculator is completely free and designed to help you plan your finances without any hidden charges.
5. How accurate are the estimates provided?
The calculator uses reliable formulas to provide accurate estimates based on your inputs. However, actual loan details may vary depending on lender fees, your credit score, and other factors.
6. Can I adjust the inputs to see different scenarios?
Absolutely. You can modify the loan amount, interest rate, and repayment period to compare various financing options and determine the scenario that best fits your budget.
7. Who can benefit from using this tool?
This calculator is ideal for anyone considering a personal loan—whether it’s for debt consolidation, home renovation, or other personal expenses—helping you understand the financial commitment before you apply.