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A loan should make your life easier, not harder. We only want to arrange loans you can comfortably repay. This page explains how affordability is judged, with a worked example, why the offer may be lower than you asked for, the warning signs to watch for, and exactly what to do if repayments become difficult.
1. How we assess affordability
We look at your monthly income and your existing commitments, such as car loans, housing loans, credit card payments, PTPTN and other personal loans. From these we work out your debt service ratio (DSR): how much of your monthly income would go to debt repayments if you took the new loan.
Worked example: you take home RM 4,000 a month and already repay RM 900, so 22.5% of your pay goes to debt. Keeping all repayments within 40% of take-home pay, a cautious guide, leaves RM 700 a month of room. That fits a RM 15,500 Personal Loan over 24 months at 4.9% p.a., with instalments of RM 679.31, which takes you to about 39.5%. The 40% figure is a guide, not our approval rule: your adviser also considers your other expenses and circumstances.
With your consent, our licensed lending partner checks your CCRIS and CTOS reports after you apply, to confirm your existing commitments and repayment history. We may also ask for income documents, such as your latest payslip or recent bank statements. This protects you as much as it protects the lender. You can run the same check yourself with our Affordability calculator under Calculators.
2. Why we may offer less than you asked
If the instalment on the amount you asked for would take too much of your income, your adviser may offer a smaller amount or a longer tenure. For example, RM 20,000 over 12 months is RM 1,711.23 a month with RM 534.79 of interest; over 36 months it's RM 598.52 a month but RM 1,546.73 of interest. Ask your adviser for both the instalment and the total interest for each option, or check them with the calculator on our Rates & fees page, so you can choose knowingly.
You don't have to accept any offer. If the amount doesn't meet your needs, you can say no at no cost. There are no processing or admin fees, so you lose nothing by declining.
3. Before you apply: five questions
1. What exactly is the money for, and how much does it really cost? Get quotations or bills rather than guessing, and resist rounding up. Every extra ringgit borrowed is repaid with interest.
2. Could part of it come from savings, family, an employer, insurance or a cheaper scheme such as PTPTN or hire purchase? Borrow only the gap.
3. Could you still pay the instalment in a bad month, for example without overtime, commission or a strong month of business income?
4. What is the total amount payable, not just the instalment? A lower instalment over a longer tenure can cost much more in total.
5. Do you have a plan to settle early if money comes in? Early settlement has no penalty and cuts the interest you pay.
4. Warning signs of over-borrowing
You're borrowing to pay off another loan or credit card, or to cover everyday expenses like rent and groceries every month.
More than a third to half of your take-home pay already goes to debt repayments, you're only paying the minimum on your credit cards, or you've missed payments in the last few months.
You've applied to several lenders at once, or you feel you have to hide your borrowing from your family. If any of these sound familiar, pause before taking on more debt and consider talking to AKPK (see below).
5. If you're struggling to repay: what to do, step by step
1. Tell us before the due date, not after. Message your adviser with what has changed, how much you can pay and when. The sooner we know, the more options there are, and we'll work with our licensed lending partner to find a realistic way forward.
2. Pay what you can on the due date, even if it's only part of the instalment, and send the receipt. A smaller amount owed means less late payment interest.
3. List all your debts and your essential monthly costs, and decide which payments come first: housing, utilities and food, then secured debts, then the rest.
4. Get free help. AKPK (Agensi Kaunseling dan Pengurusan Kredit), an agency set up by Bank Negara Malaysia, offers free, confidential counselling, budgeting help and, for eligible borrowers, a Debt Management Programme.
5. Don't take a new loan, especially from an unlicensed lender, to cover a missed payment. That usually makes things worse.
Late payment can add late payment interest, which under the Moneylenders Act 1951 is capped at 8% a year simple interest, calculated daily, on the overdue instalment only. It may also affect your credit record. Ignoring the problem makes it more expensive.
6. How we remind and follow up
Your adviser sends repayment reminders on WhatsApp from our official number, with the amount and the due date. If a payment is overdue, the message states the amount outstanding and how many days overdue it is, reminds you that late charges in your loan agreement apply, and invites you to reply if you're having difficulty so we can go through the options your agreement allows.
Harassment is never acceptable. If anyone claiming to act for us threatens you, shames you, or contacts your family, friends or employer about your debt, tell us through our Complaints page and make a police report.
7. Change your mind or settle early
Before you sign, you can walk away at any time with no cost. After you've received the money, you can settle the loan early at any time with no early settlement penalty. You pay the outstanding principal plus interest only up to the day you settle: settle right after an instalment and there's no extra interest; settle between due dates and interest is added for the days since your last due date.
For example, on RM 10,000 over 12 months at 4.9% p.a., settling right after the 6th instalment means paying the balance of RM 5,061.10 and saves RM 72.58 of interest. If you've borrowed more than you needed, settling early or making a partial prepayment (at least RM 1,000, which lowers your monthly instalment and keeps the same end date) reduces the interest you pay. Ask your adviser for your settlement amount on any date.
8. Never borrow from illegal lenders (Ah Long)
Unlicensed moneylenders, often called Ah Long, charge extreme interest, take your ATM card or MyKad, and use threats and harassment to collect. Lending money without a licence is a crime, and so is harassing borrowers.
Never take a new loan to repay an Ah Long; it usually deepens the debt. Instead, keep records of everything you've paid, make a police report if you're being threatened or harassed, and talk to AKPK about your other debts.
If you're unsure whether a lender is licensed, check KPKT's official list of licensed moneylenders or its i-KrediKom app before you deal with them.