Tips To Approve A Bank Personal Loan In Malaysia

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Tips To Approve A Bank Personal Loan In Malaysia
1. CHECK FINANCIAL RECORDS
Before you start applying for a loan, first check the condition of your financial records. The first thing the bank will look at is the financial record of the person applying for the loan.
If you have a bad repayment record, for example you are often late to make credit card payments, the bank will not approve your loan application.
A bank is a financial institution that accepts deposits from customers, and those deposits will then be used to provide loans such as personal loans, housing loans and loans for cars.
The bank will then charge for the loan. Borrowers who have a poor repayment record are more likely to continue their behavior.
So, this is one of the reasons why you need to make sure your financial records are in good condition as it will help you when you want to apply for a loan or any other application at the bank.
If you have a bad financial record, take the time to improve that record before you apply for a loan. It’s better than going through the loan application process then being turned down because you already know you have a bad financial record.
Bank Negara has a Central Credit Reference Information System (CCRIS) which collects all loan credit information from banks in Malaysia and then prepares the credit report provided to the bank. You can also get this report to see your credit standing. You need to come to Bank Negara to get your CCRIS report.
There is another credit report that you should look at as well which is CTOS. The bank will also check the applicant’s CTOS credit report before deciding to approve or reject the application. You can get a CTOS credit report from MyCTOS.
2. DISCIPLINED
Before you apply for a loan, make sure you have started to be disciplined by paying off all your financial commitments like car loan or repayment of your credit card on time.
Start this attitude at least 6 months before you apply for a loan, but the sooner you start the better. Remember, even if you have no intention of applying for a loan in the near term, paying off all your financial commitments early is a good attitude. It will help increase your chances when you apply at the bank.
Your disciplined attitude in repaying this will also determine how your financial records will fare later. This is because if you are often late or worse, not making payments for your other financial commitments this will show up on your financial records.
The bank will then reject your application for seeing your poor payment pattern. So remember, you need to be disciplined if you want an application approved!
3. READ ALL TERMS
As a general rule, most banks will only approve your loan application if it does not exceed 30% of your existing financial commitment. For personal loans, the bank will give you 2 or 3 times your salary. In order not to waste time, calculate how much your financial commitment is and look at the terms and conditions of the bank loan before you apply for a loan.
Some individuals forget or underestimate to see the terms and conditions. Make sure you check the minimum salary limit, age and also the loan limit that will be given by the bank before starting your application. This will help you make sure you are eligible or not and don’t waste your time applying just for the application to be rejected because you are not eligible and you can actually find out this if you look at the terms and conditions listed.
4. FROM CREDIT RECORD
Some banks refuse to approve loan applications for individuals who do not have credit records. This means individuals who do not have any financial commitments such as car loans, housing loans or credit cards.
Such individuals do not have any credit records, so the bank cannot see or tamper with their payment patterns. So, before you apply for a loan you are recommended to start a credit record as it will increase the chances of your loan application being approved.
You can start a credit record by getting a basic credit card and use it to pay for your daily purchases. You can then take advantage of that credit card to get rebates, cashback and discounts. But, remember you need to make payments for your credit card with discipline, don’t pay your credit card late anyway!
Confused how and where to get a basic credit card? You can compare the best basic credit cards in Malaysia for free through CompareHero.
Lastly, try to put yourself in the place of the bank. That way, you can evaluate yourself through the way the bank will evaluate you. This method can also help you to move smarter before you apply for a loan from the bank.
Banks have different processes and systems when processing the applications they receive. But, if you follow the tips given above, you can increase the chances of your loan application being approved.
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