Personal Loan Rates Malaysia 2025: Complete Rate Guide

Current Personal Loan Interest Rates

Licensed Money Lenders

• Best Rate: 4.88% p.a.
• Average Range: 8% - 15% p.a.
• Maximum Legal Rate: 18% p.a.

Traditional Banks

• Maybank: 5.99% - 13.88% p.a.
• CIMB Bank: 5.65% - 14.5% p.a.
• Public Bank: 5.5% - 13.5% p.a.
• Hong Leong Bank: 6.28% - 14.28% p.a.

Digital Lenders

• Average Range: 6% - 16% p.a.
• Competitive rates for online applications

Factors Affecting Your Interest Rate

Credit Score (CTOS/CCRIS)

• Excellent (750+): 4.88% - 8%
• Good (650-749): 8% - 12%
• Fair (550-649): 12% - 16%
• Poor (below 550): 16% - 18% or rejected

Income Level

• RM 10,000+: Best rates available
• RM 5,000-9,999: Competitive rates
• RM 2,000-4,999: Average to higher rates
• Below RM 2,000: Limited options, higher rates

Employment Status

• Government sector: Preferred rates
• MNC/large corporations: Good rates
• SME employees: Standard rates
• Self-employed: Slightly higher rates

How Rates Are Calculated

Flat Rate vs Reducing Balance

Flat Rate: Interest calculated on original principal throughout. Simpler but usually more expensive.

Reducing Balance: Interest calculated on remaining balance. More complex but typically cheaper.

Effective Interest Rate (EIR)

The true cost of borrowing including all fees. Always compare EIR, not just advertised rates.

Rate Trends 2025

• Bank Negara OPR: 3.00% (as of Jan 2025)
• Trend: Rates expected to remain stable
• Competition driving rates down for good credit borrowers
• Digital lenders offering promotional rates 5-6%