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5 best bank and koperasi personal loan 2020

5 Best Bank & Cooperative (Koperasi) Personal Loan for Government Servants in 2020

If you are a civil servant, you will most likely have the experience of receiving SMS or cold calls offering you personal loan financing, whether it is from the bank or koperasi. With so many personal loan products in the market that are offered exclusively to government servants, it is not easy to identify and decide which financing is most suitable to your needs. 

Commonly, many civil servants will usually first approach Bank Rakyat or Bank Simpanan Nasional when seeking for personal loan financing, given the name recognition, wide branch network and competitive financing rates.  Are there any other financing alternatives that might better suit your needs? What if your loan application is rejected by these banks or the loan amount offered is lower than what you need?

In this article, we compiled five alternatives of the Best Bank and Koperasi Loans for Government Servants in 2020. These 5 loans will suit borrowers with different requirement and credit background – from financing with low interest to approval as fast as 2 working days. Borrowers with high outside payslip commitment or have negative credit records can also have access to safe and affordable koperasi loan.


1. Public Islamic Bank – MCCM

Advantages

(1) Fixed rate with low interest (from 3.99%) & high payout (97-98%)

(2) Cost of living calculation is lower and more lenient than other banks, meaning the chances of approval is higher for borrowers with high outside payslip commitment

(3) Stable turnaround time (approval usually within a week from submission)

Considerations

(1) Borrowers with AKPK, Special Attention Account, more than 2 months overdue in CCRIS, trade reference/CTOS above >RM1,000 is not eligible (overdue PTPTN is not considered)

Fixed Financing Rate: 3.99% (for loan above RM100k) and 4.45% (for loan below RM100k)

Payout: 97-98% of the financing amount

Maximum Loan Amount: RM150,000 (up to 10 years financing)

Minimum Income: RM1,500 per month

Working Status: Permanent job with minimum of 12 months of service (selected Kementerian is 6 months of service)

Processing Time: 1 – 2 weeks (approval usually within a week and after that, sign offer letter at branch)

Repayment: ANGKASA deduction

Monthly Membership Fee: No

Takaful/Insurance Protection: Yes

Syariah Compliant: Yes

Commentary:

This personal loan is directly offered by Public Islamic Bank.  MCCM Resources Sdn Bhd (MCCM) is the bank partner to assist with the ANGKASA deduction. This loan is best suited for government servants who are looking for fixed rate low interest financing. The processing time is stable, approval generally within a week from the submission of complete documents.

This financing is also suitable for civil servants who intends to reduce their monthly commitment by consolidating their high interest rate personal loan and credit card debt with this low interest rate bank loan.  Public Bank allows borrowers to use this loan to directly settle their credit card or other loans. This is useful for borrowers to reduce their monthly financial burden, especially those with high credit card debt that is carrying 18% interest per annum.  

As it is a bank loan, Public Bank will consider your outside payslip commitment by calculating your debt service capability. However, the cost of living calculation is also lower than most banks, with RM700 for living in urban and RM400 for suburb areas. As a comparison to other banks where the cost of living calculation for urban and suburb areas is RM1,500 and RM700 respectively. This lower cost of living calculation means that borrowers that may have been turned down by other banks due to high commitment might still stand a chance to get approved by Public Bank.

Borrowers with AKPK, Special Attention Account (SAA) or more than 2 months overdue in CCRIS (other than PTPTN) is not eligible to apply. 

This financing is marketed through MCCM Resources’ agents. Once you have submitted your application, it will be processed directly at Public Bank HQ and once it is approved (usually within a week), the bank will assign this case to the selected branches near you. All you need to do is to go over to the branch and sign the offer letter. The financing will be directly credited into your bank account.

Apply Public Islamic Bank – MCCM Personal Loan now

2. Co-opbank Pertama (CBP, formally known as Bank Persatuan) 

Advantages

(1) Fixed interest rate with low interest (from 3.9%) & high payout (95%)

(2) Fast processing with pre-approval within 2-3 days

(3) CTOS/trade reference with non-bank institutions can apply 

Considerations

(1) Borrowers with AKPK, Special Attention Account are not eligible. If loan with banks currently record 2 months overdue or longer, borrower need to first settle the overdue in order to proceed

Fixed Financing Rate: 3.9% (for loan tenure 1-3 years) and 4.20% (for loan tenure 4-10 years)

Payout: Approximately 95% of the financing amount

Maximum Loan Amount: RM20,000 (up to 10 years financing)

Minimum Income: RM2,000 per month

Working Status: Permanent job with minimum 3 months of service

Processing Time: 1 week (receive pre-approval in 2-3 days)

Repayment: ANGKASA deduction

Monthly Membership Fee: No

Takaful/Insurance Protection: Yes

Syariah Compliant: Yes

Commentary:

Co-opbank Pertama (CBP), formerly known as Bank Persatuan, is a cooperative bank that offers personal loan with rate as low as 3.9% for government sector and government link companies workers.

Borrowers can apply for up to RM200,000 with a maximum loan term of up to 10 years. Hence making it suitable for those who wants to consolidate their debts into one account and make their monthly instalment lower through a cheaper interest rate.

With just a copy of your IC, latest month payslip and consent form, CBP can provide you with a pre-approval quotation within 2-3 days.  If the loan package is acceptable to you, then you shall proceed to get the Biro ANGKASA form and employer verification letter signed. This will save a lot of hassle of getting the documentation ready and then being informed that the loan is not approved.

CBP will consider your commitment outside payslip by calculating your debt service capability.  Borrowers with trade reference/CTOS with non-bank institutions (e.g. Courts, Singer, telco, money lenders or co-orperatives) are eligible to apply.  However, borrowers with AKPK or Special Attention Account (SAA) records are not eligible. If you have a bank loan that currently has an overdue of 2 months or more, you will need to settle the overdue first.

Once you have received the pre-approval and signed Borang Biro ANGKASA and when the employer verification letter is ready, you can just go to the nearest CBP branch to sign the offer letter and the financing will be credited into your bank account.

Apply Coopbank Pertama Personal Financing now

3. Koperasi Putri Terbilang Malaysia Berhad (KOPUTRI)

Advantages

(1) High outside payslip commitment can apply

(2) Low interest rate (5.9%) with high payout (95%) compared to most koperasi loans in the market

(3) Can receive financing 6-8 days from submission of complete application

Considerations

(1) Borrower with Special Attention Account (SAA) or trade reference/CTOS of more than RM5,000 can apply but will need to settle with this loan

(2) Borrower with AKPK is not eligible

(3) Loan offers until the age of 54 despite a borrower’s retirement age can be at 60

(4) Loan amount up to RM100,000 only

Fixed Financing Rate: 5.9%

Payout: Approximately 95% of the financing amount

Maximum Loan Amount: RM100,000 (up to 10 years financing)

Minimum Income: RM1,800 per month

Working Status: Permanent job with minimum 8 months of service

Processing Time: 6-8 working days

Repayment: ANGKASA deduction

Monthly Membership Fee: Yes (RM10 membership fee)

Takaful/Insurance Protection: Yes

Syariah Compliant: Yes

Commentary:

This koperasi loan offers low interest rate with high payout (95%) as compared to many other koperasi loans in the market. It is ideal for civil servants who are looking for a low interest rate loan but have high outside commitment. Besides, it is Syariah compliant and comes with Takaful/Insurance protection.

In addition, this koperasi loan will also come in handy for those who wish to settle their Special Attention Accounts (SAA) or CTOS/trade reference.  If you have SAA or CTOS/trade reference of more than RM5,000, you are still eligible to apply with Koperasi KOPUTRI as long as the overdue account is fully settled with this koperasi loan.  Borrower with AKPK record is not eligible.

The processing time for this koperasi loan is also relatively fast. After submission of complete application form, you will receive an approval within 3-4 days and then it takes another 3-4 days to receive the financing in your bank account. So, the full process of this loan application is between 6-8 working days.

Please note that there is a membership fee of RM10 per month and also a “Tabung Anggota” contribution of RM30 per month, in addition to the monthly loan repayment.  The RM30 “Tabung Anggota” will be refunded back once the loan is fully settled.  You will need to inform the koperasi to cancel the membership in order to receive this “Tabung Anggota”. Based on our understanding, it may take some time for the koperasi to cancel your membership and refund the “Tabung Anggota” back to you.

The funding for Koperasi KOPUTRI is from CIMB and hence, the loan will need to be deposited into a CIMB account.  If you don’t have a CIMB account, you can still proceed to apply and only open up the account once the loan is approved.

For borrowers with no ANGKASA deduction yet in the payslip, the koperasi usually will offer loan amount of up to RM25,000.

Apply Koperasi KOPUTRI Personal Financing now

4. Yayasan Ihsan Rakyat (YIR) and Yayasan Dewan Perniagaan Melayu Perlis (YYP)

Advantages

(1) One of the fastest personal loan for civil servants – receive financing as fast as 2 working days

(2) Stable source of funding and turnaround time

(3) Borrowers with high outside payslip commitment/ AKPK/ overdue in CCRIS/ CTOS are eligible to apply

(4) There is no membership fees for Yayasan Ihsan Rakyat (YIR)

Considerations

(1) A number of financing packages/interest rate available, which may cause confusion to borrowers

(2) Some of the financing packages are high interest rate with low payout

(3) Takes about 3 weeks to obtain the full settlement letter (used to charge RM100 upfront for the letter, but this has been waived since March 2020).

As of the date of writing, there are 4 financing packages offered by YIR/YYP, depending on borrowers’ credit score:

  • 6.50% rate p.a. with 90% payout (for high credit score borrowers)
  • 7.99% rate p.a. with 80% payout (for high credit score borrowers)
  • 8.99% rate p.a. with 79% payout (for low credit score borrowers)
  • 9.99% rate p.a. with 78% payout (for low credit score borrowers)

Fixed Financing Rate: From 6.5% p.a. to 9.99% p.a.

Payout: From 90% of the financing amount, down to 78% depending on the financing packages

Maximum Loan Amount: RM150,000 (up to 10 years financing)

Minimum Income: RM1,500 per month

Working Status: Permanent job with minimum 6 months of service

Processing Time: As fast as 2 working days

Repayment: Direct salary deduction (for YIR) / ANGKASA deduction (for YYP)

Monthly Membership Fee: No (for YIR)/ Yes, RM20 membership fee (for YYP)

Takaful/Insurance Protection: No

Syariah Compliant: Yes

Commentary:

Both Yayasan Ihsan Rakyat (YIR) and Yayasan Dewan Perniagaan Melayu Perlis Berhad (YYP) are foundations established under the Companies Act 2016. They are not cooperatives/Koperasi. This loan is ideal for government servants who are looking for fast and safe financing, as processing for approval by YIR and YYP can be as fast as 2 working days upon complete documentation received.  

The funding for YIR and YYP are provided by RCE Marketing Sdn Bhd, a subsidiary of RCE Capital Berhad, a Bursa Malaysia listed company.  Processing for both YIR and YYP loan is also done by RCE.  The product features for both YIR and YYP are the same, the main difference is that the repayment for YIR loan is through AG salary deduction but YYP is through ANGKASA.

This product is also suitable for borrowers who have records of SAA, AKPK, CTOS or high outside commitment, or those with salary as low as RM1,500 per month and working permanently for as short as 6 months only. Borrowers with an outstanding amount of less than RM30,000 in CTOS are still eligible to apply, but note that the loan interest rate will be effected. 

The main selling point for YIR that differentiates from the others is that it does not charge any membership fees to borrowers which can be an additional burden as opposed to the majority of the other Koperasi Loans in the market.

One thing to note about the financing from Yayasan Ihsan Rakyat (YIR) and Yayasan Dewan Perniagaan Melayu Perlis (YYP) is that there are 4 interest rate packages as mentioned above – 6.5%, 7.99%, 8.99% and 9.99%. The 6.5% interest rate package (with 90% payout) is introduced mid-2019 for borrowers with good credit score. This is an attractive financing product and so be sure your agent is offering this if you are qualified for this package (beware that not all agents are offering this 6.5% package, so make sure to check).  If you are being offered a 7.99% interest rate package, you are most likely to qualify for this 6.5% interest rate package.

There has been feedback by YIR and YYP customers that they were charged RM100 as upfront payment in order to obtain the settlement letter for each of their YIR/YYP loan.  We were informed by YIR/YYP that this upfront payment has been waived and is no longer required since early March 2020. The processing time for obtaining this settlement is about 3 weeks. No settlement letter required if it is under internal overlap.

Apply Yayasan Ihsan Rakyat and Yayasan Dewan Perniagaan Melayu Perlis Personal Financing now

5. Koperasi Bersatu Tenaga Malaysia Berhad (KOBETA), funds from CIMB (Speed-i)

Advantages

(1) Borrowers with high outside payslip commitment, overdue in CCRIS/CTOS is eligible to apply

(2) Low interest (5.9%) with high payout (91.5%)

(3) High loan amount of up to RM250,000

Considerations

(1) While the approval of the loan can be within 2-3 days, it may take 5 working days or more to receive the financing in your bank account

(2) Membership fees of RM30 for first time borrowers with Koperasi KOBETA

(3) 3-months advance payments deducted from the financing amount, which will reduce the amount of cash in hand 

Fixed Financing Rate: 5.99%

Payout: Approximately 91.5% of the financing amount

Maximum Loan Amount: RM250,000 (up to 10 years financing)

Minimum Income: RM1,500 per month

Working Status: Permanent job with minimum 6 months of service

Process Time: About 2 weeks

Repayment: ANGKASA deduction

Monthly Membership Fee: Yes (RM30 membership fee)

Takaful/Insurance protection: Yes

Syariah Compliant: Yes

Commentary:

Koperasi Bersatu Tenaga Malaysia Berhad (KOBETA) is a cooperative registered under the Co-operative Societies Act 1993.  Koperasi KOBETA offers 2 type of personal financing products – Cash-i and Speed-i. Cash-i is funded by Bank Rakyat whereas Speed-i is funded by CIMB.  In this article, we are referring to KOBETA’s Speed-i product which has a higher payout.

This financing product is suitable for government servants who have negative CCRIS or CTOS record, given the reasonable interest rate of 5.99% per annum and about 91.5% payout.  There is a 3 months advance payment deducted from the loan.  For first time borrower with Koperasi KOBETA, there is a monthly RM30 membership fees.

Civil servants with fixed salary of minimum RM1,500 and have a permanent position for 6 months are eligible to apply.  For borrowers with no ANGKASA deduction yet in payslip, koperasi usually will offer loan amount of up to RM30,000.

One of the consideration for this loan is that while the approval of the loan can be within 2-3 days, it may take 5 working days or more to receive the financing in your bank account.

Apply Koperasi KOBETA Personal Financing now

Conclusion

Please note that all the loan products discussed in this article will not require you to pay anything to apply and will not ask you for any payment should your loan is approved later.  If you want to find out what bank or koperasi loan that you are eligible for, check your eligibility anytime and anywhere with Direct Lending.  Our service as always is 100% free.   

Direct Lending is an online personal loan platform that help government servants to search, compare and apply the bank or koperasi loan that is most suitable to you.

Tips from Direct Lending: If you do have any financing needs, it is advised not to wait until the last minute but to always plan ahead. By doing so, you would have more time to search for the best deals in town. In the worst case scenario, if the agent you are dealing with is dishonest and you find out that the actual loan details are not the same as what you were told before you applied, you have the right to cancel the loan and move on to find a better deal.

Direct Lending

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