- Kuala Lumpur
AE Finansure’s Personal Loan Calculator is a free tool built for Malaysians who want to understand their borrowing costs before committing to anything. Input your desired loan amount, annual interest rate, and repayment tenure and see your full cost breakdown is displayed instantly.
Getting your loan estimate takes less than 30 seconds. Here’s how:
Tip: Try increasing your tenure to lower your monthly instalment, then compare how much extra interest you’ll pay over the longer period. The right balance depends on your monthly budget and financial goals.
Understanding how your interest is calculated can save you thousands of ringgit over the life of a loan.
The Flat Rate Method (Currently Used)
Most Malaysian banks currently apply a flat rate when calculating personal loan interest. Under this method, interest is charged on the full original loan amount for the entire tenure — even as you pay down the principal each month.
The formula is straightforward:
Example: A RM30,000 loan at 6% p.a. over 5 years:
The Reducing Balance Method (Coming January 2027)
Bank Negara Malaysia (BNM) has mandated that from 1 January 2027, all licensed banks must calculate personal loan interest using the reducing balance method. Under this approach, interest is charged only on the outstanding principal, meaning your interest cost decreases each month as you repay.
For borrowers, this is a significant improvement. On the same RM30,000 loan at 6% p.a. over 5 years, the reducing balance method results in meaningfully lower total interest paid compared to the flat rate, because you’re no longer paying interest on money you’ve already returned to the bank.
What this means for you now: If you’re planning to take out a personal loan in late 2026 or early 2027, it’s worth factoring in this change. Loans signed from January 2027 onwards will use the fairer reducing balance calculation. If you have an existing loan, your current terms remain unchanged until the loan matures.
Not sure how to compare the two methods for your situation? Our advisors can walk you through the numbers — [contact us here].
Your monthly repayment amount is shaped by four key variables:
Before applying, check that you meet the standard eligibility requirements shared by most Malaysian banks:
If you’ve been declined by a bank or are unsure of your eligibility, AE Finansure specialises in finding the right lending solution for your specific profile including for clients with complex credit histories.
Indicative rates. Actual rates depend on your income, credit profile, and loan amount. Contact AE Finansure for a personalised assessment.
| Bank | Interest Rate (p.a.) | Min. Loan Amount | Max. Loan Amount | Max. Tenure |
| Bank Rakyat | From 3.88% | RM5,000 | RM150,000 | 10 years |
| BSN | From 4.00% | RM1,000 | RM200,000 | 10 years |
| CIMB Bank | From 5.33% | RM2,000 | RM100,000 | 10 years |
| Maybank | From 6.50% | RM5,000 | RM100,000 | 10 years |
| AmBank | From 6.99% | RM2,000 | RM150,000 | 10 years |
| AEON Credit | From 9.50% | RM1,000 | RM100,000 | 5 years |
A financial advisor helps individuals and businesses make informed decisions about their finances, offering guidance on investments, retirement planning, tax strategies.
Simply enter three values: your desired loan amount (in RM), the annual interest rate (as a percentage), and your preferred loan tenure (in months). The calculator will instantly display your estimated monthly instalment, total repayment amount, and total interest cost. There’s no registration required and it won’t affect your credit score.
Malaysian banks currently use the flat rate method: Monthly Instalment = (Loan Amount + Total Interest) ÷ Loan Tenure in Months. Total Interest = Loan Amount × Annual Interest Rate × Tenure in Years. For example, a RM20,000 loan at 5% p.a. over 5 years yields a monthly instalment of RM500. Note: From 1 January 2027, Bank Negara Malaysia requires all banks to switch to the reducing balance method, which will result in lower effective costs for borrowers.
A flat rate charges interest on the full original loan amount throughout the entire tenure, even as you pay down the principal. The Effective Interest Rate (EIR) reflects the true cost of borrowing — it accounts for the fact that your outstanding balance decreases over time. As a rule of thumb, the EIR on a flat rate personal loan is approximately 1.8–2x the advertised flat rate. Always compare loans using EIR for a fair comparison.
Most Malaysian banks allow you to borrow up to 4–10 times your monthly gross salary, up to a maximum of RM200,000, depending on the lender. The minimum monthly income requirement is typically RM1,500–RM3,000. Your approved amount also depends on your credit score (CCRIS/CTOS), existing debt commitments, and employment type (government vs. private sector).
The maximum personal loan tenure with most Malaysian banks is 10 years (120 months), though some lenders offer up to 7 years for private sector employees. Government employees and civil servants may access longer tenures through koperasi (cooperative) schemes. A longer tenure reduces your monthly instalment but increases the total interest paid — use our calculator to compare both scenarios.
No. Using AE Finansure’s personal loan calculator is completely anonymous and does not involve any credit check. Your credit score is only affected when a bank or financial institution performs a formal credit enquiry as part of an actual loan application. You can use the calculator as many times as you like without any impact on your CCRIS or CTOS report.