Personal Loans for Government Employees in Malaysia: The Pros and Cons
Attractive Interest Rate Personal Loan Especially for Government Employees in Malaysia
Most of us regret about the fact that we don’t have enough money for spending on our dreams and desires. You may be a government employee in Malaysia or might be serving at one of the private sector enterprises in the country you must have had the above feeling at some point in your life.
However, things tend to turn south when we suffer from cash constraints in times of emergency. Getting a personal loan can solve many problems in such situations. A large number of government employees residing in Malaysia take personal loans both for meeting emergency requirements and fulfilling their desires. The section below would educate you about personal loan for government employees in Malaysia.
The majority of the government employees in Malaysia get confused when they are required to apply for a “pinjaman wang berlesen”, the Malaysian term used for personal loan.
The main reason behind their confusion is the wide variety of personal loans made available in Malaysia by the lenders. This makes it extremely important for you to understand the basics of various personal loans for government employees available in Malaysia and their respective application procedures.
On average, the repayment period for these personal loans for government employees in Malaysia vary between one and ten years. In addition, the amount you can borrow as personal loan is never as big as what you can borrow in form of a mortgage loan. However, you will most likely need to pay a higher interest rate on such personal loans.
In Malaysia, the interest rate on these personal loans typically vary between 10 and 13%. However, government employees in Malaysia usually get personal loans on significantly lower rates of interest compared to people working in private sector firms.
As you will get the loan amount in cash, you can use personal financing for funding any of your needs and desires without any obstacle.
Personal loans can be used for financing all your personal needs. You can use the amount of personal loan you get for everything from buying a dream gadget and going for an exotic vacation to paying your pending bills and sending your child to a prestigious college for higher studies.
Once you have taken a personal loan, it’s your duty to repay it. So, you should never take a personal loan without considering the consequences. It’s true that a personal loan can help you in dealing with financial emergencies but you shouldn’t apply for the personal loan without weighing its pros and cons thoroughly.
As mentioned above, various kinds of personal loan are offered to the government employees in Malaysia. You will get to choose between options like consolidated personal loans, unsecured personal loans, and secured personal loans. Below, we have provided some crucial information about each of these personal loan types in Malaysia.
What is a Government Personal Loan?
Government personal loans share the same features similar to any other loans such competitive borrowing rates, flexible repayment terms and high borrowing amounts. There are a variety of government personal loans Malaysia has to offer, from banks to koperasi loan, conventional loans to Islamic loans, and secured loans to unsecured loans.
Who Can Apply for Government Personal Loans in Malaysia?
Government personal loans and personal financing are meant for those working in the Malaysia’s government sector only. If you are employed by the Federal and State governments in Malaysia, chances for your personal loan to be approved are very likely.
Some banks and financial institutions in Malaysia do offer government loans to the employees of statutory bodies, police, army and, in some cases, Malaysia’s government-linked companies
It is best to check with the bank or agencies on the eligibility requirements when applying for personal loans for civil servants or government employees in Malaysia.
Types of Personal Loan in Malaysia
Secured Personal Loans
You will be able to take this personal loan against a valid collateral support, which may include a fixed deposit or unit trust account you have in the same financial institution/bank.
To get a secured personal loan in Malaysia, you will need a guarantor who will be taking responsibility on your behalf. The interest rates for these personal loans tend to be slightly lower compared to the other personal loan types discussed here. That’s because secured personal loans are much less risky to the organization lending you the money. What’s more, you can also borrow a bigger amount through secured personal financing.
Unsecured Personal Loans
The biggest advantage of unsecured personal loans is that they will not require you to arrange a collateral or guarantor. That’s possibly the reason why unsecured personal loans enjoy more popularity than any other personal loan type.
However, these persoanl loans would require you to pay a much higher interest rate that what you would have paid on a secured personal loan. That’s because these personal loans a quite risky for money lending organization.
Financial institutions in Malaysia examine every applicant’s eligibility very strictly before releasing an unsecured personal loan. They scrutinize the credit history and employment status of the applicants thoroughly before approving their personal loan applications.
Consolidated Personal Loans
A consolidated personal loan is a personal loan taken for paying off another personal loan. This personal loan type combines the current debt of the applicant and repay it using the funds sanctioned through consolidated personal loan.
The above explanations must have helped you to understand the pros and cons of different personal loan types offered to government employees in Malaysia. You should decide on the types of personal loan suitable for you depending on your needs and present financial status.