Getting student loans in Malaysia can be a very detailed process but if you do your research, it is still fairly straightforward. Here are some tips to get you started off in the right direction.
Understand the Requirements for Different Loan Types
Many student loans are only offered to people of certain nationalities, ages, and, of course, a certain level of income. Additionally, loan types may be restricted for use at certain universities.
For example, one type of loan may be available only to Malaysian citizens under the age of sixty. The income requirement might be based on the last quarter or six months of salary. If you already know to check for these types of requirements going in, then you won’t waste time applying for loans that you can’t qualify for.
Also, keep in mind that different loan types have different maximum loans available.
Determine What Documents You Will Need to Apply
Whenever you apply for a loan, you’ll have to supply quite a bit of documentation. Typically, these documents include items such as a copy of your NRIC, your college acceptance letter, your original course fees schedule, etc. You will also have to submit documentation to prove your income level whether you’re working for a third party or self-employed.
The proof of income may be supplied via salary slips, bank statements, or EPF statements for those employed by a third party. Self-employed applicants might be required to provide proof of business registration, bank statements, payment receipts, or more.
Other Facts to Research
If you want to learn how to get loans in Malaysia, you’ll want to familiarise yourself with some loan-specific terminology.
For example, a fixed deposit pledge is a way to increase the amount of money that you can borrow by pledging a secured amount of money or property. Tenure is the length of time that you have to pay back your loan and can affect how much interest you end up paying over time.
Legal fees are charged in conjunction with some services while others do not charge legal fees for school loans. Loans also have different terms for repayment. For example, some allow you to pay only the interest for a period of time before making full payments.
Talk to a Loan Officer
One of the best things that you can do to educate yourself about student loans is to visit a financial institution and consult with a loan officer. While there is a lot of information available online, there’s no substitute for talking with an expert in the field. Set up an appointment with an officer at a banking institution that you trust.
It’s always a good idea to research a banking institution to ensure that they have a solid reputation and happy customers as well. Choose banks and financial institutions that are well-established and transparent about their terms, fees, and loan features.
Remember, your student loans aren’t just a debt that you’re incurring or a bit of paperwork that you need to do. They’re an investment in your future and should be treated as such.