What Are Fast Approval / Easy Loans?
Fast approval loans are personal loans that you can get in short notice, usually within only a few hours or days. These easy-to-get loans can help you sort out all your personal and financial emergencies in a short amount of time. If you are in urgent need of money but don’t have a rainy day fund set up, fast approval personal loans are your best bet.These unsecured loans do not need any collateral and you can apply for them at a bank or non-banking institution even if you are self-employed!
Why Apply For Fast Approval Personal Loans?
Suppose you’d like to buy a massage chair to relax after a hard day of working but your funds are limited and you don’t have the cash at hand to purchase one immediately. Fast Approval Personal Loans are designed to help people in such situations, be it personal needs, emergencies, or business purposes.You can get fast approval personal loans to pay for wedding expenses, credit card debts, house repair expenses, college fees, starting a new business, or any financial emergencies.
Where To Apply For Fast Approval Personal Loans?
About 15 banks all across Malaysia provide fast approval personal loans. You can also find different sources offering fast approval personal loans, such as moneylenders, P2P, and more. However, you should not approach them before conducting extensive research.
How Fast Is The Loan Approval Process?
In Malaysia, it can take anywhere from half an hour to a week for a fast approval personal loan to be granted. However, with CompareHero, you can get a personal loan approved in a matter of hours. It will only take 2 minutes to compare and find the best loan for you; 30 seconds to fill out the information form, 30 minutes to get a call from the bank, and 60 minutes for loan approval to disbursem*nt!
Can Foreigners Apply?
Like every other ordinary Malaysian citizen, foreigners can also submit an application for a fast approval personal loan to help pay off bills or credit card balances. While it isn’t that easy for foreigners to get approval for personal loans in Malaysia, there are some banks that offer personal loans for non-residents.
What Documents To Prepare For A Fast Approval Personal Loan Application?
With correct documents, you can get your Fast Approval Personal loan approved and disbursed in a matter of hours. Here are the typical documents you should prepare before applying for any easy loan:
| Salaried Applicants | Entrepreneur Applicants |
| Identity Card (MyKad/Passport) | Identity Card (MyKad/Passport) |
| Most recent three months’ payslip | Business Registration Certificate |
| Most recent 3 months bank statement | Latest 6 months company’s bank statements |
| Most recent EA or BE form (with valid tax payment receipt) | Most recent BE or e-Form BE (with valid tax payment receipt) |
| Most recent 6 months’ EPF statement |
Table of Comparison for Fast Approval Personal Loans in Malaysia
| Bank | Approval Time | Interest Rate (p.a.) | Min Income (RM per month) | Loan Amount (RM) | Loan Tenure (RM) | Debt Consolidation | Cashback |
| Hong Leong Bank | 2 days | 5.50% - 6.50% | 2,000 | 5,000-250,000 | 24-60 | Yes | No |
| CIMB | 1 day | 6.88% - 14.88% | 2,000 | 2,000-100,000 | 24-60 | Yes | Yes |
| RHB Easy | 1 day | 8.18% - 13.45% | 1,500 | 2,000-150,000 | 12-84 | Yes | Yes |
| Alliance Bank | 1 day | 5.33% | 3,000 | 5,000-150,000 | 12-84 | Yes | No |
Fast Approval Personal Loans by Non-Banks in Malaysia
| Lender | Approval Time | Interest Rate (p.a.) | Min Income (RM per month) | Loan Amount (RM) | Loan Tenure (RM) | Debt Consolidation | Cashback |
| JCL | 1 day | 12%-18% | 1,000 | 500-50,000 | 12-60 | No | No |
| Icon Venture Capital | 1 day | 13%-18% | 5,000 | 10,000-2,000,000 | 12-60 | No | No |
| Emicro | 1 day | 18% | 1,500 | 5,000-10,000 | 6-24 | No | No |
Factors Banks Consider To Determine Your Loan Amount And Interest Rate
Banks usually look into different factors that indicate your financial health before they approve a loan. Here are the common factors banks will consider before they let you sign the dotted line:
| Factors | Consideration |
| Financial Situation | Bank will gauge your financial situation by looking at these things:
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| Repayment Terms | Based on your current financial situation, your bank could let you choose from 1 to 5 years loan period. |
| Interest Rates | Since fast approval personal loans are unsecured, these factors play a major role in determining the interest rate:
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| Other factors | These factors can also affect your loan terms:
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Example Of Monthly Installment Calculation For Fast Approval Personal Loan
The fast approval personal loan is suitable for those who have an urgent need for money, usually before receiving their paycheck. This type of loan requires you to make monthly repayments until your loan is fully paid.For example, you are looking for a fast approval personal loan of RM100,000 from Bank X for 5 years to finance your wedding expenses at a flat interest rate of 10% per annum.
| Loan Details | Total |
| Loan amount | RM100,000 |
| Loan tenure | 5 years (60 months) |
| Interest rate | 6% p.a. flat |
How much interest to be paid over 5 years?=RM100,000 x 6% p.a.= RM6,000 per year x 5 years= RM30,000What is the total amount you repay over 5 years?= RM100,000 + RM30,000= RM130,000What is the monthly installment?=RM130,000 ÷ 60 months (5 years)= RM2,166.67
Debt Service Ratio Calculation Formula
Banks usually look into your debt service ratio (DSR) before approving a loan to determine if you can repay the loan in time.The debt service ratio (DSR) is calculated by dividing your net operating income by the total debt service.
Debt Service Ratio = (Total Monthly Commitments ÷ Total Monthly Income) x 100%
Here is a working example:Your salary is RM8,000 and your extra income is RM2000. You also have a car loan of RM1800 and a mortgage loan of RM2,200 every month. Moreover, for your new Personal Loan, you will have to pay RM1000 per month.
| Salary | RM 8,000 | |
| Extra Income | RM 2,000 | |
| Total Monthly Income | RM 10,000 | |
| Car Loan | RM 1,800 | |
| Mortgage Loan | RM 2,200 | |
| Personal Loan | RM 1,000 | |
| Total Monthly Commitments | RM 5,000 | |
What is your DSR?=(Total Monthly Commitments ÷ Total Monthly Income) x 100%= (RM5,000 ÷ RM10,000) x 100%= 50%In this example, you have to give up 50% of your total income every month to meet all your debt commitments. With such high DSR, you may not have enough money to cover your loan while living comfortably, and so your loan may not get approved. The recommended DSR range is between 30 to 40 percent.
Tips To Get Your Loan Application Approved Quickly
| # | Factor | Tips For Quick Approval |
| 1 | Credit History | Banks have access to your financial history through CCRIS and CTOS. They’ll evaluate your previous financial history before they approve a loan. If you’ve always made the payment on time, you may get your loan application approved quickly! |
| 2 | Credit Score | If you have a high credit score, you could get favorable deals from the bank. On the other hand, if your credit score is poor, you should clear the existing debts before you contact the bank for a new one. |
| 3 | Debt Service Ratio | If your total loan commitments are over half of your total income, chances are that your loan will not get approved. You should keep your DSR at around 33% for the loan approval. |
| 4 | Credit Card | If you are just a beginner starting out and don’t have a credit history, you should get a credit card. If you spend in small amounts and repay on time, you’ll soon be building up a good credit history and credit score! |
Before you apply for a fast approval personal loan, you should have the required documents on hand. If your documents are all ready, and you have a great credit score and history, chances are that your loan application will get approved without any issues. Check out the best 5 fast approval personal loans with the lowest interest rates before you apply!
