You might ask this question if you’re an expat.
The direct answer is yes. But, with exemption. Expats cannot apply for a personal loan. Expats can only get home loan or a car loan transacted, through banks and finance firms. There are some banks in Malaysia that offer these kinds of loans up to 90% of the whole price. Most banks in Malaysia only offer 70% margin of loans.
Another way is acquiring a credit card. But, expats need to deposit a minimum amount of RM5,000. This deposit amount will serve as the credit limit of the borrower.
So, let’s talk on the details about car loans and home loans.
Banks in Malaysia allow expats, as mentioned above, to borrow money up to the 90% of the entire amount of the house or a car. For instance, the car you want to buy costs $RM100,000, you should have RM10,000 in your bank account. The bank will now take care of the remaining 90,000, to be paid on the car seller. You will pay this kind of car loan on a monthly basis with interest.
There is also a kind of loan for expats called CIMB (Commerce International Merchant Bankers) auto loans. This kind of loan is a hire-purchase loan wherein CIMB bank will help own a car through financing up to 75% of the total amount of the car. This scheme offers a good range of good interest rate and flexible repayment tenures.
Talking about home loans, Malaysian housing law says that expats have a limited amount of money they can spend of owning a house. This limited amount depends on the area where the expat wants to live, or where the house he wants to buy is located. For example, in East Malaysia, the house or a commercial building, for instance in Sarawak and Sabah, must be at least RM300,000 and RM500,000 in minimum. This depends on the expats’ Malaysia Second Home (MM2H) status.
For credit card loans, expats can get this loan through CIMB, Maybank, and Public Bank. However this is subject to profiling and scrutiny on your current record and ability to pay. To be eligible for credit card loan, an expat should earn at least RM30,000 annually, and an expat should hav a visa.
Most banks in Malaysia require expats to have an account in their bank, and has a deposit of RM5,000 minimum. This amount also serves as your credit limit.
You might ask:
How can I apply for home or car loan in Malaysia?
The information mentioned above you already have the idea on how to get these loans. The requirements and the needed amount to be able to start get the loans.
You can go directly go to any bank in Malaysia, and inquire there. Ask for the bank manager to discuss about your eligibility to get these kinds of loans. Don’t forget that you as an expat cannot get a personal loan.
To know more about our services, contact us for a FREE CONSULTATION. We can channel you to the right connections for your financing needs.