Are you juggling multiple debts from credit cards, PTPTN, car loans, or personal loans?
A debt consolidation loan in Malaysia lets you combine all your outstanding debts into one loan with:
This guide will show you the top banks and lenders in Malaysia offering the best personal loan options for debt consolidation in 2025.
| Bank / Lender | Interest Rate (Flat) | Max Amount | Tenure | Special Notes |
|---|---|---|---|---|
| MBSB Bank | From 3.88% p.a. | Up to RM250,000 | Up to 10 years | Islamic financing available |
| Bank Rakyat | From 4.88% p.a. | Up to RM200,000 | Up to 10 years | Salary deduction via AG payroll optional |
| RHB Easy Loan | From 6.88% p.a. | Up to RM150,000 | Up to 7 years | Easy online approval |
| AEON Credit Service | 8% – 15% p.a. | Up to RM20,000 | Up to 5 years | Accepts lower income & non-fixed salary |
| KOBETA (Koperasi) | From 3.99% p.a. | Up to RM150,000 | Up to 10 years | Blacklisted borrowers accepted |
| CapBay (P2P Lending) | From 6% p.a. | Up to RM50,000 | Flexible | For self-employed with irregular income |
📌 Debt consolidation is most effective when you’re paying down high-interest debts like credit cards (18% p.a.) or Ah Long loans.
Include:
Mention “Debt Consolidation” as the loan purpose during application.
This often improves approval odds & helps the lender tailor a better plan.
Once approved, use the loan to clear existing high-interest debts immediately.
| Benefit | Why It Helps |
|---|---|
| ✅ Lower Overall Interest | Replace high 18%+ credit card interest |
| ✅ One Single Repayment Date | Avoid multiple due dates & late fees |
| ✅ Improve Credit Score | On-time payment of 1 loan vs multiple debts |
| ✅ Stress-Free Management | Easier budgeting with fixed monthly amount |
| Mistake | Why It’s Risky |
|---|---|
| ❌ Not cancelling paid-off cards | Risk of re-accumulating debt |
| ❌ Borrowing more than needed | Higher repayment = unnecessary stress |
| ❌ Not checking loan fees | Hidden fees can cancel out interest savings |
| ❌ Late repayments on new loan | Can worsen your credit rating again |
❓ Is a personal loan good for consolidating credit card debt?
✅ Yes. Credit card interest can hit 18% p.a., while debt loans start from 3.88% flat.
❓ Can blacklisted borrowers apply for consolidation loans?
Some koperasi and licensed lenders accept mild blacklist or CTOS cases.
❓ Will debt consolidation improve my credit score?
Yes—paying off old debts in full and keeping up with the new loan improves your rating.
❓ Do I need collateral or guarantor?
No. These are unsecured personal loans.
If you’re overwhelmed with debt and want a smarter way to manage your finances, consolidating everything into a single, low-interest loan may be the best solution.
👉 Compare your options and apply online today at:
🔗 https://myloanreviews.com
