What Is A Personal Loan
A personal loan is an amount of money borrowed based on certain obligation and terms agreed by both parties and are due to be paid on the period with the amount that has been agreed by both parties. In detail, it is known as unsecured loans which are advanced on the basis of the borrowers’ credit history and their ability to pay back the loan from their personal income.
Repayment is usually through a fixed amount of installments over a fixed term which is also sometimes called consumer loans. These loans are granted for personal use as opposed to the business-related loans. They will be secured by the guarantor or through asset purchased.
Personal loans normally used by people for personal use for example for medical needs, sudden cash flow issues that failed to be handled appropriately or to pursue the business opportunity that is not to be missed. Sometimes personal loans can help few people that are having trouble due to a financial problem or to settle their debt which is normally in short term.
Features of Personal Loans
Features of the personal loans are normally that they are usually borrowed in small amount so it won’t exceed RM150K, commonly there are no collateral that will be involved in the approval process, and it is only for short tenure, of no particular business related and open even to people who are self-employed or those who are underemployment. As long as you are able to show a stable cash flow and the ability to repay back the money you are borrowing.
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The documents needed
In order for you to qualify for a personal loan you must show the records that support your ability to repay the installment either from your EPF receipts showing consistent contributions from you and your company coming in and also from your salary slip showing consistent cash flow to your bank in and out.
When you apply for the loan and when it is approved, you will receive the money that you are loaning in lump-sum amount but you will repay the money later in installments. The timeframe of your payment is normally determined by the specific term of your loan while the interest rate of your loan is determined by the credit score.
There are differences between lending from a financial institution and from the private lender, where for private lenders it is easy in terms of approval process because they are not registered normally and they often require fewer documents for the approval request and you can have flexible tenure. Other than that, even those who are blacklisted can also borrow which is different from the financial intuition that won’t allow those blacklisted to borrowed money but the market rate for these higher risk borrowers.
If you decide that you want an immediate cash disbursement without any hassle then you might opt for the private lenders. You might also can check other services loan like Business loan, Housing Loan and Land Loan