Personal loan calculator Malaysia 2026
Personal loans in Malaysia are quoted with a flat interest rate: interest is charged on the full amount for the whole tenure, even as you repay it. Enter the amount, the flat rate from your offer and the tenure to see the monthly instalment, the total you will repay and the effective interest rate (EIR), the figure to use when you compare loans.
Borrowing RM 10,000.00 at 6% flat over 5 years costs RM 216.67 a month and RM 3,000.00 in interest. The EIR is 10.85%, almost double the headline rate.
Estimate only. Stamp duty, processing fees and insurance are not included. The loan agreement is authoritative.
Flat rate and EIR: why the headline rate looks low
With a flat rate the interest for every year is worked out on the original amount. By the last year you owe very little, but you still pay interest as if you owed the full sum. The EIR spreads the same interest over the balance you actually owe each month, so it is always higher than the flat rate.
The longer the tenure, the wider the gap. RM 30,000.00 at 4.5% flat over 7 years works out to an EIR of 8.14% and RM 9,450.00 of interest. Compare offers on EIR and on the total repayable, never on the flat rate alone.
Short-term loans from licensed moneylenders
Licensed moneylenders registered with KPKT lend smaller amounts over a few months. By law they may charge at most 18% a year on an unsecured loan and 12% on a secured one. A RM 2,000.00 loan at 18% over 3 months costs RM 90.00 in interest, or RM 696.67 a month.
Before you apply, check that the company and its website appear in KPKT's i-KrediKom app, and never pay a fee before the money reaches your account. You can compare licensed moneylenders and read reviews of each lender (both pages in Bahasa Malaysia), or see how the instant loan apps compare on speed and eligibility.
How much can you afford to borrow?
Banks look at your debt service ratio (DSR): all monthly repayments, including the new loan, divided by your net income. Work out your net pay with the salary calculator, then check the new instalment with the DSR calculator.
Keep a margin for the unexpected. An instalment you can only just pay leaves nothing for a medical bill or a month without overtime.
Questions
How is personal loan interest calculated in Malaysia?
Most personal loans use a flat rate: amount x rate x years. RM 10,000.00 at 6% over 5 years is RM 3,000.00 of interest, added to the amount and divided into 60 equal instalments of RM 216.67.
What is a good EIR for a personal loan?
There is no single good figure: it depends on your income, credit record and the lender. Compare the EIR and the total repayable of at least two or three offers for the same amount and tenure.
Can I settle a personal loan early?
Usually yes, but check the agreement for an early settlement fee and how unearned interest is rebated. With a flat-rate loan the rebate is often smaller than you expect.
What is the maximum interest a licensed moneylender can charge?
18% a year for an unsecured loan and 12% a year for a secured one, under the Moneylenders (Control and Licensing) Regulations 2003. Anyone charging more is not following the law.