Whether you’re planning for debt consolidation, medical expenses, or a major purchase—choosing a loan with the lowest interest rate can save you thousands.
In this 2025 guide, we’ve compared the latest personal loan interest rates in Malaysia from top banks and trusted lenders, so you can find the most affordable and suitable financing option fast.
| Bank / Lender | Interest Rate (Flat) | Effective Rate (Approx.) | Loan Amount | Notes |
|---|---|---|---|---|
| MBSB Bank | From 3.88% p.a. | 7.99%–8.88% EIR | RM5,000 – RM250,000 | Islamic financing available |
| Bank Rakyat | From 4.88% p.a. | 8.00%–9.00% EIR | RM5,000 – RM200,000 | For govt & GLC/private sector |
| AEON Credit Service | 8.00% – 15.00% p.a. | Up to 18% EIR | RM1,000 – RM20,000 | Accepts low-income and freelancers |
| Ambank Personal Loan | From 6.88% p.a. | 11%–14% EIR | Up to RM150,000 | Based on credit score |
| CapBay (P2P) | From 6.00% p.a. | Varies (peer-based) | Up to RM50,000 | Self-employed accepted |
| IKOBANA Capital (KPKT) | ~10%+ p.a. | 14%–18% EIR | RM1,000 – RM10,000 | Fast approval, no payslip needed |
📌 EIR = Effective Interest Rate. Actual rate may vary based on loan tenure, credit score, income level & other risk factors.
| Criteria | Bank Loan | Licensed Lender Loan |
|---|---|---|
| 🏦 Interest Rate | 3.88% – 7.5% (flat) | 8% – 18% (flat) |
| 📝 Document Requirement | More strict (payslip/EPF) | More flexible (bank statement OK) |
| 🕒 Approval Time | 3–5 working days | Same day to 1–2 days |
| 💸 Max Loan Amount | Up to RM250,000 | RM1,000 – RM20,000 |
| Mistake | Why It’s Risky |
|---|---|
| ❌ Ignoring hidden fees | Processing, stamp duty & insurance may apply |
| ❌ Looking only at monthly payment | Low instalment doesn’t mean cheaper overall |
| ❌ Comparing flat rates only | Always check EIR if tenure is > 3 years |
| ❌ Choosing fastest over cheapest | Rushed decisions = higher long-term cost |
❓ Which bank offers the lowest interest rate in 2025?
✅ As of 2025, MBSB Bank offers as low as 3.88% p.a. flat rate.
❓ What is a good effective interest rate (EIR)?
Aim for under 10% EIR for bank loans. Licensed lenders usually have 14%+.
❓ Can self-employed borrowers get bank loans?
Yes, with proper income proof like bank statements or EPF i-Saraan.
❓ Can I negotiate interest rates?
Yes, especially if your credit score is strong or you’re a loyal customer.
Choosing the right loan isn’t just about fast approval—it’s about minimizing your borrowing cost over time.
Use this 2025 comparison guide to find the lowest personal loan interest rates in Malaysia from trusted banks and lenders.
👉 Need help applying or checking approval instantly? Visit:
🔗 https://myloanreviews.com
