How to Get a Personal Loan with Low Income in Malaysia – Full Details
Getting a personal loan can be challenging if you have a low income, as banks and lenders assess your ability to repay before approving your application. However, there are ways to improve your chances of approval and secure the financing you need.
1. Understand the Minimum Income Requirements
Most banks and financial institutions in Malaysia have a minimum income requirement for personal loans. The typical minimum income requirements include:
- Banks – Usually require a monthly income of RM2,000 to RM3,000.
- Cooperatives (Koperasi Loans) – More flexible, some offer loans for incomes as low as RM1,500 per month.
- Licensed Moneylenders – Alternative options for those who do not qualify for bank loans.
Tip: Check the lender’s eligibility criteria before applying to avoid unnecessary rejections.
2. Improve Your Loan Eligibility
If you earn a low income, you can take steps to improve your chances of getting approved:
(1) Reduce Your Debt-to-Income Ratio (DTI)
- Most banks prefer a Debt-to-Income (DTI) ratio below 60%.
- Pay off existing debts, such as credit card balances or car loans, to improve your DTI.
(2) Apply for a Smaller Loan Amount
- Avoid applying for a high loan amount that exceeds your ability to repay.
- Opt for a manageable amount that suits your income level.
(3) Choose a Longer Loan Tenure
- Selecting a longer repayment period (e.g., 5-7 years) reduces your monthly installment, making it more affordable.
(4) Apply with a Guarantor or Joint Applicant
- Having a co-applicant (spouse or family member) with a higher income can increase your chances of approval.
(5) Maintain a Good Credit Score
- Ensure timely payment of bills and debts.
- Check your CTOS/CCRIS credit report before applying.
3. Best Personal Loans for Low-Income Earners in Malaysia (2025)
Here are some of the best personal loans for applicants with a low income:
| Bank/Lender | Minimum Income | Loan Amount | Interest Rate | Tenure |
|---|---|---|---|---|
| Maybank Personal Loan | RM2,500/month | RM5,000 – RM100,000 | 6.5% – 9% p.a. | Up to 6 years |
| CIMB Cash Plus Loan | RM2,000/month | RM2,000 – RM100,000 | 6.88% – 15% p.a. | Up to 5 years |
| AEON Credit Personal Loan | RM1,500/month | RM1,000 – RM100,000 | 8% – 18% p.a. | Up to 7 years |
| Bank Rakyat Personal Financing-i | RM2,000/month | RM5,000 – RM150,000 | 4.5% – 6.5% p.a. | Up to 10 years |
| RHB Easy-Pinjaman Ekspres | RM1,500/month | RM2,000 – RM50,000 | 8% – 14% p.a. | Up to 5 years |
Tip: Government employees can apply for Koperasi Loans, which offer lower interest rates and easier approval.
4. Alternative Loan Options for Low-Income Earners
If traditional banks reject your application, consider these alternatives:
(1) Licensed Moneylenders (PPW-Registered)
- Non-bank lenders regulated under KPKT (Ministry of Housing and Local Government).
- Higher interest rates (typically 12% – 18% per annum).
- Faster approval but smaller loan amounts.
Examples of Licensed Moneylenders:
- Direct Lending – www.directlending.com.my
- JCL Credit Leasing – www.jcl.com.my
(2) Online Lending Platforms (P2P Loans)
- Peer-to-peer lending platforms connect borrowers with individual investors.
- Examples:
- Fundaztic – www.fundaztic.com
- CapBay – www.capbay.com
(3) Government Assistance Programs
Some government programs offer financing for low-income individuals:
- BSH (Bantuan Sara Hidup) – Government aid for low-income households.
- TEKUN Nasional – Microfinancing for small business owners.
5. How to Apply for a Personal Loan in Malaysia
Step 1: Check Your Eligibility
- Ensure you meet the minimum income and credit score requirements.
Step 2: Prepare Required Documents
Commonly required documents:
- Copy of IC (MyKad).
- Latest 3 to 6 months salary slips.
- Latest EPF statement or BE Form (Income Tax form).
- Latest bank statement (for self-employed individuals).
Step 3: Compare Loan Offers & Apply
- Compare interest rates and repayment terms.
- Apply online through the bank’s website or visit the nearest branch.
Step 4: Wait for Loan Approval
- Processing time varies from 24 hours (licensed moneylenders) to 5-7 working days (banks).
- Some lenders offer instant approval loans if you have a stable income.
6. Things to Consider Before Taking a Loan
✔ Can You Afford the Monthly Repayment? – Ensure the loan fits within your budget.
✔ Check for Hidden Fees – Processing fees, late payment charges, and insurance costs.
✔ Compare Different Lenders – Don’t settle for the first offer; look for the best rates.
Conclusion
Getting a personal loan with a low income in Malaysia is possible if you plan wisely. Choose lenders that offer flexible eligibility criteria, keep a low debt-to-income ratio, and maintain a good credit score. Consider alternatives such as cooperatives, licensed moneylenders, and P2P platforms if banks decline your application. Always borrow responsibly and ensure you can manage repayments effectively.
