Personal Loan Eligibility Malaysia: Do You Qualify?

Basic Eligibility Requirements

1. Nationality & Residency

• Malaysian citizen OR Permanent Resident
• Valid Malaysian IC
• Residing in Malaysia

2. Age Requirements

• Minimum: 21 years old
• Maximum: 60-65 years old (varies by lender)
• Loan must be fully repaid before age 65-70

3. Income Requirements

• Salaried Employees: Minimum RM 1,500 - RM 2,000/month
• Self-Employed: Minimum RM 2,000 - RM 3,000/month
• Pensioners: Some lenders accept pension income

4. Employment Requirements

• Minimum 6 months in current employment
• Self-employed: 1-2 years business operation
• Probation: Some lenders accept, others require confirmation

Credit Score Requirements

CTOS Score Ranges

• Excellent (750+): High approval rate, best rates
• Good (650-749): Good approval chance, competitive rates
• Fair (550-649): Moderate approval, higher rates
• Poor (below 550): Difficult approval, may need guarantor

CCRIS Status

• No bankruptcies
• No active legal suits
• No defaults in past 12 months
• DSR below 60%

Debt Service Ratio (DSR)

Formula: DSR = (Total Monthly Debt Payments / Monthly Income) × 100

DSR Requirements by Lender Type

• Banks: Maximum 60-70% DSR
• Licensed Money Lenders: Maximum 60-80% DSR
• Conservative Lenders: Maximum 40-50% DSR

Example DSR Calculation

Monthly Income: RM 5,000

Existing Debts:

• Car loan: RM 800
• Credit card: RM 200
• Total: RM 1,000

DSR = (1,000 / 5,000) × 100 = 20%

You can afford additional RM 2,000 - RM 3,000 monthly payment (to reach 60-80% DSR)

Documents Required

For Salaried Employees

• Malaysian IC (front & back)
• Latest 3 months' payslips
• 3-6 months' bank statements
• EPF statement (latest)
• Employment letter/contract

For Self-Employed

• Malaysian IC
• Business registration (SSM)
• Latest 6 months' business bank statements
• Income tax returns (Form B/BE)
• Financial statements (if available)

Special Categories

Fresh Graduates

• Some lenders offer special schemes
• Lower minimum income (RM 1,500)
• Accept offer letters for pending employment

Retirees/Pensioners

• Maximum age typically 70-75
• Pension income considered
• May need guarantor

Foreigners/Expats

• Valid work permit required
• Higher minimum income (RM 3,000+)
• Limited lender options

Reasons for Rejection

• Insufficient income
• High DSR (over 60%)
• Poor credit score/history
• Bankruptcy status
• Unstable employment
• Incomplete documentation