Personal loan is known as an unsecured debt because they are not backed or supported by collateral such as your home or car. Lenders would probably use your credit score in order to determine whether you are qualified to be given the loan and at what kind of interest rates. Personal loan can also help you cover your immediate expenses without breaking your bank. The amount that you can get might be up to RM50K. For those who have bad credit score or none of it might make your loan application become a bit of a struggle.
Why do you need personal loan?
Normally individual would apply for the personal loan due to certain circumstance which force them to get immediate cash for example to cover the medical expenses, to further their or their children studies or for those who experience cash flow issue at the moment and there are some individuals who apply for personal loan in order to get them available to pursue the business opportunities that are not to be missed.
Features of personal loan
Personal loan is different from the common business related loans. The personal loan features are as follows. Personal loan is usually borrowed in a small amount that doesn’t exceed RM50K, they normally do not involved any collateral so that’s why they are called unsecured loan, normally happen and going for a short tenure and it is related to no particular business. Personal loan is also opened to those who employed by a company and also to those who are self-employed.
How to qualify for personal loan
It is not difficult to get yourself to qualify for a personal loan because all you need to do is to show your ability to repay the installment in the monthly basis as agreed during the application. Besides that, you should also specify if you are currently under employment, with salary being credited directly into the bank. These people would have a higher chance of getting an approval, as compared to self-employed, where income is not stable, and difficult to proof their repayment ability.