How to get a Loan in Malaysia

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Read This Before Applying For A Loan
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If your understanding of a loan is fast cash,
you need to read this article. Getting a loan
sanctioned is easy if you know how, and so is the
entire process of paying it back. But if you
dont know exactly what youre doing when you get
a loan, it could be the start of a very bleak
chapter in your life one riddled with debt for
as long as you figure a way out of debt.
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What type of Loan do you need?
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There are a world of loan options out there and
taking the right loan on the right terms could be
the difference between living a life or being
trapped in debt. Analyse your specific
requirements do you want a new car? A new
house? To start a business? To fund a holiday?
Whatever your requirement is, you can find a loan
product thats specifically designed to cater to
it, or whose terms are more favourable to your
specific need. Taking a
personal loan to buy a car is really dumb, as car
loans designed for that purpose have lower
interest rates (because of the
car being placed as collateral, usually,
and the fact that personal loans are
unsecured) and the literature in their documents
will be more specifically beneficial to
your specific case.
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• Take a look at your credit history every so often
  to see exactly where you stand.If youre a first
  time borrower, chances are that you wont get a
  high loan amount disbursed, but your performance
  on repaying this loan will have a huge impact on
  your credit score and future loans.
• How good is your understanding of loan products?
• Taking out a loan is a big deal, and you need to
  be informed about all aspects of the loan before
  you decide to borrow. Interest rates, tenures,
  loan amounts, credit scores, repayment options,
  etc. need to be thoroughly researched before
  jumping into bed with a bank.
• You need to know all about tenures how long do
  you need before you think you can effectively pay
  your loan back? Longer tenures mean you pay a
  little lesser each month, but also mean that the
  overall amount you pay will be higher than if you
  took a shorter loan tenure. Shorter tenures mean
  a little higher amount each month, but your loan
  will be cleared off faster.

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• So, consider the various types of loans
• Car loan.
• Home loan.
• Personal loan.
• Business loan.
• Mortgage loan.
• Education loan.
• There are more customizable options, but youll
  need to talk to your bank representative to
  arrange it.

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Where are you going to borrow from? After
deciding on which type of loan you need, youll
need to decide where and who to borrow from. Most
people stick with their favourite bank when
taking a loan, or the last bank whose
advertisement they saw. But almost every bank
offers every type of loan product and theyre
tripping over themselves to give you the best
deal right now. Loans are how banks make money.
Theyre in competition with each other, and a
little bit of shopping around could be hugely
beneficial for you as a customer. Almost all
banks lend at different interest rates depending
on a number of factors, like
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• Your creditworthiness determined by reports
  from credit information bureaus and your
  borrowing history.
• History with the bank if youve had or operated
  an account of any kind with the bank you wish to
  borrow from.
• Loan amount most banks weigh the risk factor of
  lending to a specific party with the amount of
  money theyre putting up for loans, you could get
  a higher amount sanctioned at certain banks.
• Interest rate this is determined by your loan
  amount, tenure, credit worthiness and other
  factors. Again, the rate of interest varies
  between lenders, so a little research could go a
  long way in terms of overall savings.

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Source Banks arent the only places that give
out loans. Depending on your requirement, you
could approach other parties. For example, for a
business loan, you could approach a venture
capitalist or angel investor. For a home loan,
the builders and contractors themselves have
excellent tie ups with banks and can get you a
really good deal. Student loans can be negotiated
through Student Aid offices in schools and
colleges. Dont be disheartened if a lot of
banks reject your loan application theres
always one around the corner. Tweak your
application a little bit in order to seem more
financially stable and able to repay.
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What is your credit history all
about? There are companies out there that
record and collate all the information
about your borrowing history that doesnt just
mean loans if youve bought so much as a
mobile phone or a TV set through a
financing scheme, companies like Equifax and
Experian will have details about it.
Theyll know when you bought the TV, how
regularly you made payments (and if you delayed
any payments), and whether you closed the
transaction on the same terms on which you took
it. Meaning that if youve even defaulted on one
little payment to a bank in the past, its on
record. All these details work towards creating a
good or bad credit score. Your credit score is
what banks and lenders look at to determine your
credit-worthiness.
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Once youre done understanding the type of loan
you want and the type of tenure, etc. youre
comfortable with, go on to the internet and find
a good comparison website where you can see a
bunch of different loan products tailor made for
you, from different providers. You can compare
interest rates, tenures, offers, etc. and choose
the one that suits you best. To Know more about
Loans their features visit Bbazaar.my