Instant Loans for the Unemployed

Are you a private sector worker drawing a low salary and in need of urgent cash? A personal loan for private sector employees with low salaries is one of the financings you can try in order to meet your urgent cash needs without the need for a guarantor or collateral. This article breaks down personal loans for low-income private sector workers and provides useful tips on how to utilize them wisely.

General Eligibility for Applying for a Personal Loan

Before applying for loans for low-income workers in the private sector, you need to be aware of the eligibility requirements so that your application process won’t run into any difficulties.

Age and Citizenship Status

As with most loans, you have to be a Malaysian citizen and be at least 21 years of age. Most banks will require that you be 21 to 60 years old to qualify.

Minimum Income and Length of Employment

A personal loan for private sector employees with low salaries often requires an earning, on average, of RM1,500 - RM3,000 a month. The income condition, however, varies with the bank and type of loan. Bank Rakyat may require that you earn RM2,000 a month if you are a permanent employee, whereas contract workers are expected to have an income of RM8,000.

Additionally, applicants should also have a minimum period with the current employer, normally 3 to 6 months.

Interest Rate and Benefits of Personal Loans for Lower Salary Private Sector Employees

One of the most important features of a low income personal loan is the interest rate levied. A lower interest rate means lower monthly outgo.

Conventional and Islamic Loan Interest Rates

The two types of loans through which you can borrow include conventional loans and Islamic loans. The loans offered under the conventions have a fixed or variable interest rate. On the other hand, Islamic loans work according to the Shariah principles and are based on profit rather than interest.

For example, Bank Rakyat’s personal loan for low-income private sector workers has a fixed profit rate between 5.09% and 5.61% per year depending on the type of loan and the applicant’s credit profile, while a more conventional loan like CIMB Cash Plus Personal Loan has an interest rate starting from 4.38% per year.

Things that Determine Interest Rates

Several things affect the interest rate on personal loans including:

• Length of term – the longer the term, usually the higher the interest is.
• Credit score – usually the higher the credit score, the better rate you can obtain.
• Type of loan: Islamic loans based on profit can be more competitive depending on the bank.

Application Process for Personal Loans for Low Salary Private Sector Employees

If you know the documents that need to be submitted and how to apply for a personal loan for low salary private sector employees, applying becomes a hassle free exercise.

Required Documents

A copy of your identity card (for Malaysian citizen identification purposes), copies of your recent pay slips (usually 3 months worth), your cash flow (bank statement) for the last 3 to 6 months, EPF statement if you are an employee contributing to the EPF, LHDN Form B, and tax receipt, for self-employed or those without a fixed earning.

How to Submit an Application

Once the documents are ready, you can submit your application online or through the bank branch. Bank Rakyat, for instance, has an online platform in place to help applicants complete the application form and upload the required documents.

The application will normally take 1 to 2 weeks to process, and the bank will send a loan offer letter to you following the approval of the application.

Loan Repayment Period and Repayment Schedule

The repayment period for the personal loans for low income private sector workers would vary depending on the amount applied for and the terms under which the bank would be lending. This loan is usually available for a period of between 1 year and 10 years. A longer term the lower the payment The lower the lower the payments and the larger the total interest paid.

Example: If you borrow RM20,000, with a profit rate of 5.09% and a term of five years, the monthly payment will be approximately RM378. A longer term (say ten years) will lessen the monthly payment, but in the long run the total profit rate will be higher, remember that.

Get Money Fast with Easy Loans at AmanahKredit

If you need quick cash, AmanahKredit is for you. The application to get money is also super easy and you will get your money in a short period of time. Offering personal loans for low-income applicants to low-income Private Sector Employees to meet their urgent financial needs, AmanahKredit provides simple access to cash for low-income recipients.

AmanahKredit offers a service where you can apply for fast-approval loans, so you can have access to funds so you can manage your daily cash flow needs.

Consider These Practical Tips Before Choosing a Personal Loan

1. Pick a Loan with the Lowest Interest Rate
   While searching for a personal loan for low-income workers, make sure to compare the interest rates that several banks offer. Pick the one with the lowest interest rate so that it doesn’t put too much strain on your budget monthly, and you can calculate how much you’ll pay each month and in total in interest using a online loan calculator.
2. Consider an Appropriate Repayment Term
   Choose a reasonable repayment term. A shorter term will involve higher payments every month, but less interest paid in total. A longer term will mean a lower monthly payment, but more interest to be paid.
3. Read for Hidden Fees and Charges
   Check the terms and conditions of the loan, and pay close attention to hidden charges and taxes to be charged throughout selling the loan. Banks in some countries will charge processing fees or even penalties for paying late.

Armed with appropriate knowledge about personal loans for low income private sector employees, you can make wise decisions that would help you take greater charge of your financial affairs and meet urgent needs. Remember to plan your finances before taking such loans.