The Malaysian banks and financial institutions offer similar and various types of loans to cater to the requirements of the customers. A person needs a loan for various purposes from funding his business venture, education to building his home or buying the first car. You need to be aware of the different types of loans you can avail so that you can avail them when you need money to fulfill your requirements. Find out the loans you can get in Malaysia here.
Different Types of Loans In Malaysia –
Personal loans – The traditional personal loan is the most common loans people take. Most of the people take a personal loan to buy expensive products and fulfill other requirements as per your liking. It is considered to be an unsecured loan and the lender has to show his income statement to get approval for the loan. The income must be generous and one may also have to show the assets one possesses that must be equal to the amount of loan one is taking. The approval for such loans is fast but the interest rate on such personal loans is quite high. Furthermore, there is a limited time period within which the loan amount must be paid back which makes it practically impossible to take big amounts.
Home and Property Loans – After personal loans, home and property loans are the most borrowed loans in the market. The majority of the people have to take property loans to buy a property as they cannot afford the entire property all at once. Similarly, for the construction of the home, home loans are there. Some people also take home loans for renovation works. For getting an approval of a home and property loan, you need to submit your financial statements to be eligible. If you are eligible, you have to give power of attorney to the bank or financial institution to claim your property if you fail to pay the debt in due time. The interest rate is moderate to high and the rates vary slightly from one financial institution to another.
Education Loans – If you are going abroad and got the chance to study in a top-tier institution and you cannot afford the fees, you need to opt for an education loan. Education loans get approval faster and the debt payment terms are customer-friendly. An education loan covers the basic fees and all other expenses related to the college or university the student is studying like accommodation and miscellaneous charges. All the different types of courses are covered whether it is full-time, part-time or vocational. The documents of the students have to be shown like the fee structure, education background history, the pay-slips of the parents and various such proofs as required by the financial institutes. The repayment starts after the completion of the course and there could be some relaxation for a year for the student to secure a job.
Apart from these three common loans, some banks offer overdraft facility whereby you can withdraw an amount more than your deposit in your savings accounts by pledging your assets. It is an informal method of personal loan that some people take especially when they can repay it in very short time. Find out the loans you can get in Malaysia here.