Personal Loan Calculator Malaysia
Calculate the real instalment — not just the flat rate that looks low. Complete with EIR, stamp duty, and "how much you can borrow" based on your income.
Flat-rate personal loan instalments are calculated as: interest = loan amount × flat rate × years, then instalment = (amount + interest) ÷ number of months. Example: RM10,000 at 6% over 5 years = RM216.67 per month (real EIR ≈ 10.85%). No deposit — the loan is advanced in full. The flat rate looks low; the EIR is the true cost.
The flat rate looks low — EIR is your loan's true cost.
No deposit — the loan is advanced in full. Tenure 1–7 years (banks); up to 10 years for co-operatives (salary deduction). The Hire-Purchase Act 2026 does not apply to personal loans.
APPENDIX AHow much can I borrow? (eligibility)
at a max instalment of RM 2,500.00/mo · rate & tenure follow the sliders above
Estimate only — not a guarantee of approval; banks assess your full CCRIS/CTOS. Keep your DSR below 60%.
This calculator computes personal loan instalments using the flat-rate formula and also computes the real effective interest rate (EIR) based on the reducing balance. The agreement stamp duty (0.5%) is taken into account; the processing fee (if any) is not included in this calculator. The 'How much can I borrow' section estimates the maximum loan from income and a target DSR. All rates are indicative — confirm the actual rate, eligibility and costs with the lender.
Instalment & EIR by loan amount
Estimated at a 5.5% flat rate over a 5-year tenure. The EIR is the true cost — always compare the EIR, not the flat rate. Confirm with the bank.
| Loan amount | Monthly instalment | Real EIR |
|---|---|---|
| RM 10,000 | RM 212.50 | 10.01% |
| RM 30,000 | RM 637.50 | 10.01% |
| RM 50,000 | RM 1,062.50 | 10.01% |
| RM 100,000 | RM 2,125.00 | 10.01% |
Personal loans — common questions
How do I calculate the instalment for a personal loan?
Most Malaysian personal loans are advertised at a flat rate: interest = loan amount × flat rate × years, and instalment = (amount + interest) ÷ number of months. Example: RM10,000 at 6% flat rate over 5 years = interest RM3,000, total RM13,000, divided by 60 months = RM216.67 per month. The real EIR ≈ 10.85%.
What is the difference between the flat rate and the EIR for a personal loan?
The flat rate charges interest on the entire original loan for the whole tenure, so it looks low. The EIR (effective rate) follows the reducing balance — the true cost you pay. For personal loans, the EIR is usually almost double the flat rate (e.g. 6% flat ≈ 10.85% EIR over 5 years). Always compare the EIR, not just the flat rate.
Does the Hire-Purchase Act 2026 apply to personal loans?
No. The Hire-Purchase (Amendment) Act 2026 governs vehicle hire-purchase financing only — it does NOT apply to personal loans. Personal loans are subject to the lender's terms and separate Bank Negara Malaysia guidelines.
How much personal loan do I qualify for?
Banks usually cap the amount based on income and DSR (Debt Service Ratio). As a guide: total monthly commitments (including the new instalment) should not exceed around 60–70% of net income. Our calculator has a 'How much can I borrow' section that estimates the maximum from your income — but actual approval depends on CCRIS/CTOS and the bank's policy.
What is the maximum tenure for a personal loan?
Banks usually offer up to 7 years. Co-operative loans (salary deduction, especially for government staff) can go up to 10 years. A longer tenure lowers the monthly instalment but increases the total overall interest.
Is there stamp duty for a personal loan?
Yes. The loan/financing agreement is charged a flat stamp duty of 0.5% of the loan amount. Example: a RM10,000 loan = stamp duty RM50. Some lenders deduct it from the amount advanced — confirm with the bank.
What is the personal loan processing fee?
Some lenders charge a processing fee (sometimes around 1% or a fixed payment), while others charge none. It varies — confirm with the lender. The processing fee is not included in this calculator; check with the lender before signing the agreement.
Can I settle a personal loan early?
You can, but the interest rebate depends on the lender's terms — some still use the Rule of 78 method for flat-rate loans. We do not publish a fixed rebate formula because it varies between institutions. Request an official settlement quote from your lender for the exact figure.
Official references
The facts, rates & rules on this page are based on the following official sources. Official information can change — always verify with the original source before deciding.