Best Personal Loans for Bad Credit in 2025 – Malaysia
Getting a personal loan with a poor credit history in Malaysia can be challenging, but several financial institutions offer loan products tailored for individuals with low credit scores. Below is a detailed guide to the best personal loan options available in 2025 for borrowers with bad credit, including their features, eligibility criteria, and application process.
1. AEON i-CASH Personal Loan
AEON Credit Service offers the i-CASH Personal Loan, which is accessible to low-income individuals and those with imperfect credit histories.
- Interest Rate: Starts from 7.92% to 18.00% per annum, depending on the applicant’s credit profile.
- Loan Amount: RM1,000 to RM100,000.
- Loan Tenure: 6 months to 7 years.
- Eligibility: Malaysian citizens aged 18 to 65 with a minimum monthly income of RM1,500.
- Features: No guarantor required, fast approval process.
🔗 Apply here: RinggitPlus
2. CIMB Cash Plus Personal Loan
CIMB Bank offers the Cash Plus Personal Loan, ideal for individuals looking for a simple loan application process without the need for collateral.
- Interest Rate: As low as 4.38% per annum.
- Loan Amount: RM2,000 to RM100,000.
- Loan Tenure: 2 to 5 years.
- Eligibility: Malaysian citizens aged 21 to 58 with a minimum monthly income of RM2,000.
- Features: No processing fees, no early settlement fees, and no collateral required.
🔗 Apply here: CIMB Personal Loan
3. Alliance Bank CashFirst Personal Loan
Alliance Bank’s CashFirst Personal Loan offers competitive rates and a fast approval process, making it a viable option for those with less-than-perfect credit.
- Interest Rate: Starts from 4.99% flat per annum.
- Loan Amount: Up to RM150,000.
- Loan Tenure: 1 to 7 years.
- Eligibility: Malaysian citizens aged 21 to 60 with a minimum monthly income of RM3,000.
- Features: No processing fees, no collateral required, initial approval in 10 minutes, and disbursement within 24 hours.
🔗 Apply here: Alliance Bank Personal Loan
4. instaDuit Personal Loan
instaDuit is a licensed moneylender in Malaysia offering fast approval personal loans, even for those with bad credit histories.
- Interest Rate: Ranges from 12% to 18% per annum.
- Loan Amount: RM500 to RM10,000.
- Loan Tenure: 6 to 48 months.
- Eligibility: Malaysian citizens aged 21 to 55 with a minimum monthly income of RM1,500.
- Features: No guarantor or collateral required, online application, approval within 24 hours.
🔗 Apply here: instaDuit
5. JCL i-Fund Personal Loan
JCL offers the i-Fund Personal Loan, catering to individuals with lower incomes and those who may have difficulty securing loans from traditional banks.
- Interest Rate: Between 18.00% to 20.00% per annum.
- Loan Amount: RM500 to RM50,000.
- Loan Tenure: 6 months to 5 years.
- Eligibility: Malaysian citizens aged 18 to 60 with a minimum monthly income of RM1,000.
- Features: Fast approval process, no collateral required.
🔗 Apply here: RinggitPlus
Things to Consider When Applying for a Personal Loan with Bad Credit
📌 Compare Interest Rates – Individuals with bad credit often face higher interest rates, so compare different loan options to find the most affordable rate.
📌 Check Loan Terms – Ensure that the repayment period and monthly installments are manageable within your financial capacity.
📌 Look for Hidden Fees – Be aware of processing fees, late payment penalties, or early settlement charges.
📌 Improve Your Credit Score – Paying off existing debts regularly can help lower your debt ratio and improve your credit score.
How to Improve Your Chances of Loan Approval
✅ Provide Proof of Stable Income – Banks and lenders prefer applicants with consistent employment and income.
✅ Reduce Existing Debts – Lower your current debt obligations to improve your debt-to-income ratio.
✅ Consider Offering Collateral – Some lenders offer secured loans where you provide an asset as collateral, increasing your chances of approval and securing a lower interest rate.
While bad credit can make it harder to secure a personal loan, choosing the right loan product and managing finances wisely can help you access the funds you need. Always ensure you borrow from legitimate financial institutions to avoid loan scams or unlicensed moneylenders.
