Do you need cash for a much-needed holiday? Or funds to tie you over in emergency
situations? In life, there’ll be times
when we find ourselves needing to apply for personal loans for various reasons
– an intimidating proposition for those who have never done it before. But whilst the process of obtaining a loan
from bank might seem complicated, it is, in fact, surprisingly simple. Here are a few easy steps to guide you through
the process:
Making a Decision to
Obtain a Personal Loan
Before you apply for your loan, you should probably assess your
personal financial situation. First,
calculate exactly how much you need to borrow, then work out the total
repayment amount by adding the principle loan amount to the interest. When you’re done, divide the total repayment
amount by the loan period to get an estimated monthly repayment amount. And finally, compare this figure against your
monthly income to see if you could afford to borrow the money for that amount,
at such a rate and for that number of months.
Researching the Options
Once you’ve ascertained that you could afford the loan, conduct
research on the various options that are available. If you have a particular bank in mind, visit
its website for details. Alternatively, comparison
websites are an easy option to finding a variety of lenders and all
the details pertaining to the loans that they offer. Sometimes, comparison websites even have
reviews and tips for the different banks.
Getting the Required
Documents Ready
Before you proceed to apply for a personal loan, make sure you
have all the necessary documents ready.
If you are a salaried employee, the bank will usually require the
following, along with the application form:
●
A copy of your government issued identity
document or permanent resident documentation
●
A copy of your current payslip. If you do not receive payslips, a copy of
your bank statement indicating your salary deposit or Form BE indicating tax
receipt of payment, or EA / EPF statement.
If you are self-employed, the bank will usually request the
following documents, along with the application form:
●
A copy of your government issued identity
document or permanent resident documentation
●
Copies of your business registration documents or
certificates
●
A copy of your most recent Form BE indicating
tax receipt of payment.
This is simply a list of the basic documentation that may be
required. The bank may require further
documents from you prior to the approval of the loan.
Completing the Application
Now that you are ready to apply for your loan, proceed to visit
a bank or undertake an online application if the bank offers such
facilities. Time for loan approval will
vary from bank to bank and is dependent on a number of factors. Generally, you’ll attain approval quicker if
you already have an account with the bank and have a solid credit history.
Prior to the signing of the loan agreement, do read the terms
and conditions to ascertain the amount,
the loan period, the monthly repayment amount, the agreed interest rate, and
any other administration charges that may apply. Also, you’ll want to take note of the monthly
repayment date. Throughout the entire
loan period, you’ll need to make sure you have sufficient funds in your bank
account on that date every month.
This article is brought to you by iMoney.my - Malaysia’s best
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