Debt Consolidation Malaysia: Which Banks Offer It?

Which Banks Offer Debt Consolidation Loans in Malaysia?

As of August 2026, official bank information confirms debt consolidation options from AmBank, Hong Leong Bank, RHB, Maybank and Bank Rakyat, although the products and eligible customer groups differ. Some are dedicated consolidation facilities, while others are personal or salary financing products that allow eligible debts to be consolidated.

Here is a quick comparison based on current information published by the banks:

Information is based on the banks' official websites accessed in August 2026. Products, rates, eligibility requirements and promotions can change. Check the relevant bank's latest product information before applying.

What Debt Consolidation Options Does Public Islamic Bank Offer?

Public Islamic Bank (PIBB BAE) offers a Shariah-compliant debt consolidation option called BAE AG Personal Financing-i, which is specially designed for government employees. Customers can transfer or refinance their existing Public Bank personal financing up to RM350,000. Additionally, customers can consolidate their personal financing from other financial institutions at a promotional fixed rate of 3.88%, with repayments made through applicable salary deductions or Biro ANGKASA arrangements, subject to eligibility. The 3.88% fixed rate is currently a limited-time promotional offer and is one of the lowest rates in the market.

This debt consolidation option features a payout of up to 98%, and existing customers do not require an employer's stamp. Borrowers can select a financing tenure ranging from 2 to 10 years. Crucially, this financing includes Takaful coverage, ensuring that in the event of the customer's passing, their family will not be burdened with the outstanding debt.

Applicant Requirements:

• Must be a Malaysian citizen aged between 20 and 56 years old.
• Must be employed in the government sector, statutory bodies, or selected GLCs (excluding military personnel).
• Must be a full-time employee with at least 1 year of service (or 6 months for employees of the Ministry of Health, Education, Finance, Transport, Home Affairs, and the Prime Minister's Department).
• Must have a minimum fixed monthly income of RM1,500, including fixed allowances.

Direct Lending collaborates directly with Public Islamic Bank to offer this exclusive financing plan to government employees. Customers simply need to check their eligibility through our platform. Once eligible, our dedicated loan consultants will assist you through every step of the process—from explaining the contract terms to handling the application and securing the disbursement of funds directly into your account—completely free of charge with no hidden fees. 

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What Debt Consolidation Options Does AmBank Islamic Offer?

AmBank Islamic offers a dedicated Shariah-compliant financing plan called Personal Financing-i – Government Sector, which is open to eligible employees of the Federal Government, State Government, and selected statutory bodies. Repayments are conveniently managed through direct salary deductions on the customer's payslip. Beyond debt consolidation, this facility can also be used to support other financial needs, subject to the bank’s eligibility and settlement requirements.

Through Direct Lending, eligible applicants can secure a fixed interest rate of 4.25% with financing amounts ranging from RM5,000 to RM250,000. This product features a high payout of up to 99.5% because it does not require mandatory Takaful coverage, maximizing your net cash disbursement upon settlement.

Customers interested in this financing can check their eligibility through Direct Lending to receive free consultations and application support. Our team will guide you through every step of the process—from application to final disbursement—completely free of charge.

Applicant Requirements:

• Must be a Malaysian citizen aged between 18 and 58 years old.
• Must be employed in the government sector, statutory bodies, or selected GLCs with ANGKASA deductions (excluding military personnel).
• Must have served for a minimum of 3 months with a fixed monthly income of at least RM1,500 (including fixed allowances).
• Applicants with a Special Attention Account (SAA) status in CCRIS or enrolled in AKPK are not eligible to apply.
• Applicants with PTPTN arrears/overdue payments are welcome to apply.

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Does Hong Leong Bank Offer Debt Consolidation?

Yes. Hong Leong Bank currently has a Personal Loan / Financing i Consolidation campaign running from 1 July to 30 September 2026. It is designed to pay off eligible outstanding credit card and personal financing balances, subject to the bank's terms, eligibility requirements and approval.

The current campaign publishes a flat interest or profit rate of 8.50% per annum before the applicable Pay On Time Rebate. The resulting rate after the stated rebate varies according to verified monthly income. Hong Leong Bank also states that the effective interest or profit rate applicable to the 8.50% flat rate varies from 15.99% to 16.71% per annum depending on tenure.

This distinction between a flat rate and an effective rate is important. When comparing debt consolidation options, do not compare headline rates alone. Look at the effective cost, tenure and total repayment as well.

Can You Consolidate Debt With RHB?

Yes. RHB states that its Personal Financing i can be used to consolidate debt into a single payment. The bank currently advertises financing of up to RM300,000 for its civil sector category, while the amount and applicable terms depend on the customer's category and eligibility.

RHB's application documentation also specifically lists debt consolidation as one of the purposes for Personal Financing / i and includes settlement instructions for existing financing accounts.

This makes it important to check which RHB customer category applies to you rather than assuming the maximum advertised amount is available to every applicant.

Does Maybank Have a Debt Consolidation Option?

Maybank's Salary Financing i currently states that eligible customers can consolidate existing loans or financing to reduce overall monthly commitments. However, this particular facility is targeted at Federal Government, State Government and selected designated or Work+ companies rather than being a universal debt consolidation product for every borrower.

The current facility offers financing from RM10,000 to RM200,000 with a tenure from two to ten years, or up to retirement age, whichever comes first. Maybank also lists a redemption statement from another financial institution as an applicable document where relevant.

So, while Maybank does provide a consolidation route for eligible customers, check whether your employer and employment category meet the facility requirements before comparing it with other options.

Does Bank Rakyat Offer Debt Consolidation Financing?

Yes. Bank Rakyat offers Personal Financing i Debt Consolidation, a dedicated Shariah compliant facility intended to combine multiple eligible financing balances into a single financing arrangement. Bank Rakyat recommends listing your existing financing balances and monthly instalments before checking your estimated eligibility.

The bank currently advertises a profit rate as low as 2.89% per annum for this facility. However, the actual rate and eligibility depend on the applicant and applicable product terms, so the advertised minimum should not be treated as a guaranteed rate for every borrower.

Bank Rakyat also publishes debt consolidation payment schedules for certain public sector, private sector and pensioner Personal Financing i categories.

Does MBSB Bank Provide Debt Consolidation?

Yes, MBSB Bank allows eligible government servants to consolidate or refinance existing financing, including the settlement of debts from other banks into a new Shariah-compliant Personal Financing-i facility of up to RM400,000 at competitive interest rates. Financing is subject to eligibility and applicable salary-deduction arrangements via Biro ANGKASA.

This product offers one of the highest financing limits in the market at up to RM400,000, alongside low profit rates starting from 2.82% per annum (floating rate). Additionally, it does not require an employer's signature for Accountant General (AG) government employees. Borrowers can select a financing tenure ranging from 2 to 10 years. With a fast approval process of just 3 to 4 working days, compared to the 1 to 2 weeks typically required by standard commercial banks, it is an ideal solution for those who need urgent financing.

Applicant Requirements:

• Must be a Malaysian citizen aged between 20 and 60 years old.
• Must be employed in the government sector, statutory bodies, or selected GLCs (excluding military personnel).
• Must be a full-time employee with at least 1 year of service.
• Must have a minimum fixed monthly income of RM3,000, including fixed allowances.
• Applicants with a Special Attention Account (SAA) status in CCRIS or enrolled in AKPK are not eligible to apply. However, applicants with high external payslip commitments, standard CCRIS records, or PTPTN loan arrears remain eligible to apply.

Direct Lending collaborates directly with MBSB Bank to offer this financing facility. You can easily check your eligibility through Direct Lending and apply online for free with no hidden charges.

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How Does Debt Consolidation Work in Malaysia?

Debt consolidation generally works by using a new loan or financing facility to settle multiple eligible existing debts, leaving you with one repayment to manage. Depending on the facility, the new provider may settle eligible debts directly. Your new repayment amount, tenure and overall cost will depend on the terms offered.

In general, the process may involve:

• Identifying the eligible debts you want to consolidate
• Checking the outstanding or settlement amounts
• Applying for a suitable consolidation facility
• Using the approved financing to settle eligible existing debts
• Managing the new repayment according to the agreed terms

For example, if you are currently managing a personal loan and several credit card balances, you can read more about how debt consolidation works before deciding whether combining eligible debts into one repayment could suit your situation. 

Direct Lending offers dedicated debt consolidation services, partnering with multiple banks to suit your unique financial needs. Simply check your eligibility on Direct Lending’s platform and let us know that you want to consolidate your debts. Our experienced loan consultants will handle everything—from assessing your existing debts to determining the most cost-effective consolidation strategy—completely free of charge. Apply now with Direct Lending at no cost and zero hidden fees!

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Is Debt Consolidation Always a Good Idea?

No. Debt consolidation can make multiple repayments easier to manage and may reduce financing costs in some circumstances, but the outcome depends on the new rate, tenure, fees and your existing debts. Extending the repayment period can lower the monthly commitment while potentially increasing the overall amount paid.

Before deciding, compare:

• Your existing outstanding balances
• Current interest or profit rates
• Remaining repayment periods
• The new effective interest or profit rate
• Fees and charges
• The new financing tenure
• Total repayment over the full tenure

The right question is therefore not simply, "Will my monthly payment become lower?" You should also ask, "How much will I repay in total?"

How Do CCRIS and CTOS Affect My Debt Consolidation Application?

Applying for debt consolidation may involve a credit assessment, and banks can consider information from sources such as CCRIS and credit reporting agencies when assessing eligibility. Your credit profile is only one part of the assessment, and having existing debts does not automatically mean your application will be approved or rejected.

Banks may also consider income, employment, existing commitments and Debt Service Ratio, commonly known as DSR. You can read Direct Lending's guide to understanding and calculating DSR to learn how existing commitments can affect your financial position. 

The exact assessment differs between providers. For this reason, there is no single CCRIS status or DSR figure that guarantees approval for every debt consolidation Malaysia application.

Will Debt Consolidation Affect My CCRIS or CTOS?

Yes. Debt consolidation directly affects your credit profile by replacing multiple high-interest debts with a single structured facility, which significantly improves your CCRIS and CTOS standing over time.

By consolidating your debts, you immediately lower your overall Debt Service Ratio (DSR), reduce the number of active high-interest credit lines (such as credit cards or multiple personal loans), and eliminate the risk of missed payments by streamlining everything into one predictable monthly installment.

When you apply, banks evaluate your credit reports from CCRIS and CTOS alongside your income stability, current commitments, and overall DSR.

Who Regulates Debt Consolidation Loans in Malaysia?

Bank debt consolidation products in Malaysia fall within the banking regulatory framework overseen by Bank Negara Malaysia. The relevant regulator depends on the actual provider, so financing from cooperatives or licensed moneylenders should not automatically be treated as bank financing.

Direct Lending is a financial marketplace rather than a bank or direct lender. Direct Lending Sdn. Bhd. is a licensed platform and authorized marketing representative for RCE Marketing Sdn. Bhd.—a subsidiary of RCE Capital Berhad—working alongside top Malaysian banks to help customers safely compare and apply for financing. 

Where an application is made through Direct Lending, eligibility and approval remain subject to the requirements and assessment of the relevant financing provider.

What Should You Check Before Choosing a Debt Consolidation Loan?

Before choosing a debt consolidation facility, compare:

• Effective interest or profit rate: Look beyond the advertised headline rate.
• Total repayment: Check how much you could repay over the full financing period.
• Financing tenure: A longer tenure may reduce monthly repayments but increase the overall amount paid.
• Fees and charges: Check any applicable costs before making a comparison.
• Eligible debts: Confirm which existing debts can actually be consolidated.
• Eligibility requirements: Requirements can differ between financing providers.

It also helps to get the latest settlement or redemption amounts for the debts you intend to consolidate. You can then use Direct Lending's personal loan calculator to estimate repayments when comparing different financing amounts and tenures.

Be careful with anyone promising guaranteed approval or asking you to make a payment simply to secure financing.

There is no upfront payment when applying through Direct Lending. The service is free to borrowers and no deposit is required. Any application remains subject to the relevant financing provider's eligibility requirements and approval.

Frequently Asked Questions

1. Which bank is best for debt consolidation in Malaysia?

There is no single bank that is best for everyone. Public Islamic Bank, MBSB Bank, Ambank, AmBank Islamic, Hong Leong Bank, RHB, Maybank and Bank Rakyat currently have facilities that support debt consolidation for eligible customers, but their requirements and structures differ. Compare the effective rate, total repayment, tenure and eligibility before deciding.

2. Can I consolidate credit card and personal loan debt together?

Yes, eligible credit card and personal loan balances can be consolidated together into a single facility. Through Direct Lending, government employees can consolidate existing credit cards and personal financing using facilities from partners such as MBSB Bank, Public Islamic Bank, or AmBank Islamic. Direct Lending has a strong track record of helping customers consolidate multiple high-interest credit card debts into one manageable, lower-rate monthly repayment. 

3. Does debt consolidation reduce my monthly payment?

Yes, in most cases. The primary goal of debt consolidation is to lower your total monthly commitments by replacing multiple high-interest debts (such as credit cards charging up to 18% p.a.) with a single consolidated financing facility at a significantly lower interest rate.

By securing a lower rate and structuring your debt into a single loan, your monthly installment decreases naturally. Depending on your financial strategy, you can also adjust your loan tenure—a longer repayment period will reduce your monthly commitment even further, though it may extend the overall repayment period.

Note: Individual monthly payments depend on the total amount borrowed and your chosen tenure. For instance, if you request an additional top-up for extra cash in hand alongside consolidating your existing debts, your final monthly installment may vary based on the total financing amount.

4. Can I get debt consolidation if I have a poor CCRIS record?

Yes, you can still apply. A less favourable credit history does not automatically determine the outcome, but the bank will assess your overall eligibility. This may include your income, existing commitments, credit information and DSR. There is no CCRIS profile that guarantees approval, and the final decision remains with the financing provider. Even if you have CCRIS records, Direct Lending’s platform allows you to check your eligibility safely without impacting your score. Our team will review your situation and match you with the right provider willing to help you consolidate your debts. 

5. Can Direct Lending approve my debt consolidation application?

No. Direct Lending is not a lender and does not make the final approval decision. Eligibility, interest rates, total financing amounts, and final approvals are determined entirely by the respective financing provider according to their internal credit assessments.

However, Direct Lending is fully committed to helping customers find the best loan that matches their unique needs and financial situation. Our team guides you through the entire process—evaluating your options, optimizing your application, and selecting the right financing partner—completely free of charge.

Conclusion

Managing multiple high-interest debts doesn't have to be overwhelming. Debt consolidation is one of the most effective ways to lower your monthly commitments, eliminate high-interest rates and bring real peace of mind to your financial life.

Remember these golden rules before you start:

• 100% Free & Safe: Legitimate debt consolidation—including all services through Direct Lending—requires zero upfront fees. No legitimate lender will ever ask for money before your application is approved.
• No Guarantors Needed: Most debt consolidation facilities offered by our partner banks do not require a loan guarantor.
• No Pressure, Full Transparency: You deserve clear terms. If any agent misrepresents a loan's actual conditions, you always have the right to walk away.

Planning ahead rather than waiting until you are under pressure gives you the leverage to secure the best rates and terms. Whether you're a government employee or corporate staff, Direct Lending is here to simplify the process—helping you search, compare, and apply for the best bank or koperasi financing option tailored specifically to your needs.

Don't let high-interest debts hold you back any longer. Check your eligibility with Direct Lending today, it takes less than 2 minutes, won't affect your CCRIS score, and our full A-to-Z consultation is 100% free with zero hidden costs.

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