Tips For Applying Personal Loan

Did you ever want to make a loan with the bank but afraid that your application was not approved by the bank? This is a normal feeling for everyone who wants to apply for a loan such as home, credit card, personal loan and car.

In fact, if you know what the bank wants, you will not have to worry about knowing and be confident that your application will be approved by the bank. That is, before applying for a loan, you can already make a loan eligibility calculation for yourself with these tips.

personal loan

Type of Loan

Did you know that each type of loan has different levels of approval? It means there is a kind of loan that is easy to graduate and there is also a kind of loan that is difficult to pass by the bank. For example, housing loans are more difficult to pass as the loan tenure is up to 30 years.

On the other hand, personal loans are easier to get approval as the amount borrowed is relatively small compared to other loans. Nevertheless, personal loan interest rates are very high against housing loans.

Type of Work And Earnings

The first thing that the bank will see is your job either working with an employer or owning a business. For individuals employed by employers, public sector workers have higher scores (easy graduation) than private sector employees.

Whereas for individuals who work with employers and have a steady income each month, it is easier to pass than individuals with irregular income. This is because individuals with fixed income are more secure than those with irregular income.

What about low-paying individuals? For credit card application, you must have a salary of at least RM2,000 a month. However, for personal loan applications, you can apply for a salary of as low as RM1,000 per month.


In general, if you have a lot of commitments or debts with the bank, it’s harder for you to make a loan with the bank for the next one.

Your total commitment is calculated through the rate of Debt Service Ratio (DSR). This rate is a monthly commitment ratio to your income. Larger ratios are interpreted as high risk, and your opportunity for bank approval will be reduced. Overdelivery is one of the main reasons why loan applications are not approved by the bank. Therefore, before applying for a loan, make sure you have reorganized your finances well.

If your debt is too high and burdensome, make debt restructuring by settling high interest-bearing debt, by making new loans with lower interest rates. This will cause you to benefit from lower interest rates.

Credit report

The next factor you need to consider is your credit report. These reports are calculated based on your CCRIS reports, and the bank will see your monthly installment repayment.

How to calculate your credit report varies by bank. In general, if your existing debt is paid within the prescribed time, your report will show a high score.

You can use references to the credit report agency to find out your current financial score. Agencies like RAM Credit Information (RAMCI) provide credit reports but you need to be willing to pay for their services.

Additional Documents

Finally, there are some additional documents you need to make to ensure that your loan application is easy to pass. The document is like savings statement either in Tabung Haji, ASB or savings account, and most important is the individual tax payment to the IRB if you are eligible.

This document will help you easily approve your loan application. Statement of savings shows that you are a good person in financial management. While the individual tax payer shows that all your income is legal and has been paid tax.

More importantly, your name has never been blacklisted by the bank or listed in AKPK.


If you are able to follow and prepare all of the above, your application is not only easy to pass but the approval will also be faster.

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