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Bank Rakyat Personal Loan

Bank Rakyat has two different types of personal loans that caters specifically for the private sectors and public sectors. The private sector personal loan is called the Bank Rakyat Personal Financing-i Private and is available to private sector employees, while the public sector personal loan is called the Bank Rakyat Personal Financing-i Public and is available for public sector employees.

If you are working in the private sector and you are looking to apply for a personal loan, the Bank Rakyat Personal Financing-i Private might be for you as it has a preferred flexibility and elasticity to its schemes. Bank Rakyat’s personal loan for the private sector has created a margin for financing based on the monthly income of borrowers. For those with a monthly income of RM2000 to RM4000, the maximum financing offered is 10 times the monthly gross salary. While for those earningRM4001 to RM6000, the maximum financing offered is 15 times the monthly gross salary. Last but not least, if you earn more than RM6000 per month, the maximum financing offered is 25 times the monthly gross salary. The financing tenure also depends on your monthly salary and if you applied for the loan before. For monthly income earners of RM2000 to RM3000, the loan tenure is 5 years. However, if you have applied for a loan before or this loan is an overlap application, then the repayment period extends to 10 years. For monthly income earners of above RM3000, the financing tenure is 10 years.

In order to qualify for this loan, you should be a Malaysian citizen aged 18 years old and above employed in the private sector with a monthly minimum salary of RM2000. Another age requirement is that you should not be above the age of 60 years old at the end of the financing tenure. The documents you will need to apply for this loan are photocopy of your identity card (both front and back), latest 3 months’ salary slip, latest 6 months EPF statement, confirmation employment letter, and most recent income tax (BE) form.

There are three different types of repayment methods. You can either pay through the Biro PerkhidmatanAngkasa, or you can have your salary automatically deducted by Bank Rakyat which is the best option if you want to avoid the 1% penalty for late repayments. The third option is to transfer the payment directly to Bank Rakyat yourself.

Take note that the Bank Rakyat Personal Financing-i Private is subjected to 0.4% stamp duty which is based on the loan amount. This fee will be deducted from the financing amount.

Bank Rakyat’s personal loan interest rates fluctuate depending on the loan amount. Take note that if you pay through Bank Rakyat’s savings account and Takaful package, you can enjoy better interest rates.

Unlike most banks in Malaysia, the Bank Rakyat Personal Financing-i Private requires you to have a guarantor. The other side of the coin is that Takaful coverage or protection is optional. More good news is that advance payment is not needed and a highly competitive rate is offered to employees of companies or cooperatives with certain conditions stated by Bank Rakyat.

 

As mentioned previously, Bank Rakyat also offers a personal package loan for the public sectors under the name of Bank Rakyat Personal Financing-i Public. This personal loan finances up to RM200,000 (more than the personal loan amount catered for private sectors). The financing margin for the public sector is up to 35 times your monthly gross salary. Unlike the Bank Rakyat Personal Financing-i Private, the loan catered for the public sector does not require you to have a guarantor. Same as the private sector loan, the public sector loan does not require you to have Takaful coverage or protection and no advance payment is needed. Take note that both fixed and floating rates apply for this loan as well.

The eligibility criterion for the public sector personal loan is almost the same as the criterion for the private sector personal loan except that the expected minimum monthly income is less – RM1000, and the public sector employee must be in service for at least 3 months.

The financing rate for both the private sector and public sector personal loan is summarised in the table below:

Payment Method Protection Financing Tenure Floating Rate Effective / Flat
Public With Takaful 1 – 3 years BFR + 2.25% 9.10% / 4.88%
>3 – 10 years BFR + 2.40% 9.25% / 5.36%
Without Takaful 1 – 3 years BFR + 3.25% 10.10% / 5.44%
>3 – 10 years BFR + 3.40% 10.25% / 6.02%
Private With Takaful 1 – 3 years BFR + 6.50% 13.35% / 7.30%
>3 – 10 years BFR + 6.75% 13.60% / 8.34%
Without Takaful 1 – 3 years BFR + 7.50% 14.35% / 7.88%
>3 – 10 years BFR + 7.75% 14.60% / 9.07%

 

*Note:

Ceiling Rate = Effective Rate + 4.00%

Current Base Financing Rate (BFR) is 6.85%

 

In conclusion, take note that whichever loan you apply for, Bank Rakyat will take a minimum of five working days (not including Saturdays, Sundays, and public holidays) before approval or disbursement. Also make sure to settle all overdue payment before applying for the loan. It is highly recommended that you continue repaying your loans on time for another 3 months before reapplying.