Personal Loan Malaysia Blog
1. What is Koperasi Loan
Koperasi loan is a type of credit service from Yayasan that is exclusive for application from government servants in Sabah. Employees from the local municipal councils, or government linked companies can also apply for the Koperasi loan. Credit cooperatives are registered with the Cooperative Commission of Malaysia (SKM) and regulated under the Cooperatives Act of 1993.
2. Who Manages the Koperasi Loans?
Koperasi loans in Malaysia offer credit facilities by utilizing their own funds. These fund is limited and is also dependant on fund flows from local financial institutions. There are plenty of household names in Malaysia playing their part in funding the Koperasi fund, which includes CIMB Koputri, RHB Islamic IDSB, Public Islamic Bank etc.
3. Eligibility in Applying for Koperasi Loans
The Koperasi loan is only applicable to government staffs who works for either for federal or state governments, municipal workers, government linked companies’ workers and others. These loans will be listed with details of list of employers who are eligible to apply. You will need to work for at least 6 months, before being eligible to apply. You can apply for a koperasi loan if you are 21, up to age 58. Minimum wage of RM 1,500 is the benchmark minimum for koperasi loan application.
4. How do you Repay Koperasi Loan?
The monthly repayment to Koperasi are conducted via an automatic salary deduction known is Biro Angkasa. The Public Service Department imposes a rule that loan instalments plus other commitments for deduction, cannot exceed 60% of total take home wage.
5. What are the Available Repayment Terms?
Koperasi loan can be at a maximum of 10 years.
6. What are the interest rates and pay outs from Koperasi loan?
Interest rates from Koperasi loan are lower than commercial loans in the market, as low as 3.88% per annum from koperasi loan providers. You will also need to take into account where the cash payout can be as high as RM 250,000. However, the usual cash payout is at around 70- 90% of the amount applied for.
7. Required Documents for Koperasi Loan Application
- Photocopy of NRIC, verified by employer
- Latest three months’ pay slip
- Verified letterhead from the employer
- Bank statements
- Copy of a utility bill (Tenaga, ASTRO, etc)
- Photocopy of Bank savings account book (could vary depending on the underwriter of the loan)
8. Difference between Koperasi Loan vs Commercial Loans
Koperasi loans are Islamic / syariah law compliant, where most commercial loans are not. Though, the repayments are made payable by instalments or deferred payments. Many Koeprasi loans also come with compulsory takaful insurance protection to ensure that any outstanding amounts in the circumstances of death or total permanent disability can be accounted for.