1. What is Personal Loan Rate in Malaysia?

The personal loan rate in Malaysia refers to the annual interest rate charged by banks for unsecured personal loans. Rates vary by bank and customer profile, with major banks like CIMB offering rates from 4.38% p.a. upwards.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( P \) — Loan principal amount (RM)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Total number of payments (loan term in years × 12)

Explanation: The formula calculates the fixed monthly payment required to fully repay a loan over its term, including interest.

3. Importance of Loan Rate Calculation

Details: Understanding your loan payments helps with financial planning and comparing different loan offers. Even small rate differences can significantly impact total repayment amounts.

4. Using the Calculator

Tips: Enter loan amount in RM, annual interest rate (e.g., 4.38 for 4.38%), and loan term in years (typically 1-10 years for personal loans).

5. Frequently Asked Questions (FAQ)

Q1: What are typical personal loan rates in Malaysia?
A: Rates vary from about 4.38% to 18% p.a. depending on bank, loan amount, tenure, and borrower's credit profile.

Q2: How does this compare to credit card rates?
A: Personal loans generally have much lower rates than credit cards (which often charge 15-18% p.a.).

Q3: What affects personal loan interest rates?
A: Factors include OPR (Overnight Policy Rate), bank's cost of funds, loan amount, tenure, and your credit score.

Q4: Are there other fees besides interest?
A: Some banks charge processing fees (1-3% of loan amount) or early settlement fees. Always check the full terms.

Q5: How can I get the best personal loan rate?
A: Maintain good credit score, compare multiple offers, consider shorter tenures, and negotiate with your bank.