Debt Consolidation Calculator Malaysia
Calculate your potential savings with our debt consolidation calculator to settle high-interest debts or find a debt consolidation loan from bank and Koperasi facilities. Simply use the tool below to check your eligibility for a debt consolidation loan in Malaysia and reduce your monthly installments today.
Debt Consolidation Calculator
Compare your old vs. new interest rates to see your potential monthly savings.
New Consolidation Loan
Disclaimer
Disclaimer: This debt consolidation calculator page is intended for personal use only. Savings will depend on the actual amounts and rate for which you are approved, should you choose to apply. All applications for financing are subject to credit evaluation and approval from Direct Lending’s partners and financiers.
How to Use the Debt Consolidation & Overlap Loan Calculator
Step 1: List Your Existing Debts
Enter your outstanding debt details, such as credit cards or old personal loans. Fill in the Balance (RM), Rate (%), and current Installment (RM). Click the "+ Add Another Debt" button if you have multiple commitments to get a complete overview of your debt consolidation in Malaysia.
Step 2: Enter Your New Loan Offer
In the New Loan section, input the annual interest rate (%) and the loan tenure (years) offered. This is a crucial part of the overlap loan calculation to determine exactly how much interest you will save by switching to a better facility.
Step 3: Calculate & View Instant Savings
Click the "Calculate Savings Now" button. The results will display a clear comparison between your old and new installments. You will see your Estimated Monthly Cash Savings, showing you how to reduce your financial burden through debt consolidation Malaysia immediately.
Consolidate Your Personal Loans & Lower Your Monthly Commitments
Choose, compare, and apply for the best debt consolidation loans on the Direct Lending platform. We help you understand the overlap loan calculation to enjoy interest rates as low as 2.82% p.a. with no upfront fees. Consolidate your high-interest debts today to immediately reduce your monthly payments and improve your cash flow.
How to Use a Debt Consolidation Calculator
Steps To Apply For A Personal Loan
Click ‘Check Eligibility’ and tell us what you need
Compare and select a product that best suits you
Submit documents, get personalised loan assistance from our dedicated loan consultant
Frequently asked questions
Managing several commitments like credit cards, student loans, and car loans, it can be challenging to keep track of payments and outstanding balances. So, if you have more than one debt, you can apply for a debt consolidation personal loan to combine and pay off all your existing debts, then repay the loan through a single monthly installment.
Consolidating your debts can improve your situation or it could ruin your credit. The new loan does not absolve you of the responsibilities to make prompt and timely payments. The debts remain collectible until it reaches zero balance.
Therefore, before agreeing to a new loan, it’s important to understand how debt consolidation works. We have prepared a comprehensive guide in this FAQs to help you further understand.
Debt consolidation is the financial strategy of combining multiple debts into a single, manageable, lower-interest payment. Unsecured debts like credit card balances and medical bills have high interest rates; consolidating them into one loan with a lower interest rate will allow you to save money and pay off your debt more quickly.
You should consider an overlap loan if you have a high total debt amount, a long remaining repayment period, or if you qualify for a lower interest rate that allows you to save on costs.
The main benefits include reducing your overall interest rate, lowering your monthly installment commitments, simplifying debt management, and potentially improving your credit score.
It does not make you debt-free immediately and may involve additional costs such as stamp duty or processing fees on the new loan.
Many types of debt can be consolidated, but debt consolidation works best when it involves high-interest debt, such as credit cards. The biggest benefit of debt consolidation is that you will save money since you will pay a lower interest rate.
Consider consolidating the following debts or bills:
- Credit cards
- Student loan
- Personal loan
- Payday loan
- Auto/Car loan
- Medical bills
- Retail and department store loans
- Other installment loans
If you choose debt consolidation to pay off debt, it is likely to improve your credit ratings in the long run. However, your credit score will go down a bit temporarily. This is because the consolidation loans will trigger an inquiry into your report at first. That's OK as long as you make your payments on time and don't acquire more debt.
Debt consolidation is a smart move when:
- Monthly debt payments (including rent or mortgage) do not exceed 50% of gross monthly income.
- Your credit is excellent enough to qualify for a 0% interest credit card or a low-interest debt consolidation loan.
- Your cash flow consistently covers payments toward your debt.
- If you choose a consolidation loan, you can pay it off within five years.
1. List down all of your existing debts.
Write down all of the debts that you have on hand. Choose which debts you want to consolidate. Check on the debt’s interest rate, loan tenure, and current outstanding balance. Refer to your financial provider if you are unsure of how to retrieve that information.
2. Do a simple calculation
| Personal Loan | Credit Card |
|---|---|
| Amount: RM10,000 | Amount: RM10,000 |
| Interest Rate: 8% p.a. | Interest Rate: 18% p.a. |
| Tenure: 3 years | Tenure: 2 years |
If you add (8% + 18%), the average interest rate comes out to 13% p.a. So, debt consolidation is worth it when your personal loan’s interest rate is lower than the total average interest rate of your existing debts. In Adam’s case, the interest rate for the new loan should be lower than 13% in order for Adam to save more.
You also can use the Debt Consolidation Calculator to estimate your savings with a consolidation loan. Our debt consolidation calculator does the math for you. All you do is enter some basic info for a quick breakdown of how much you can save.
3. Apply with a trusted financial provider
If you have decided to use a personal loan to pay off your credit card debt or other loan commitments, but you don’t know which personal loan best fits you; check out Direct Lending – an online personal lending platform.
Our smart eligibility checker will provide you with the best recommendations for bank and koperasi personal loans instantly. We can assist you to search, compare and apply for the lowest interest rate personal loan. Receive funds as fast as 2 working days. As always, our service is 100% free, with no upfront payment or processing fees.
- Proof of income. This is one of the most important debt consolidation qualifications. Lenders will want to know that you have the financial means to meet the terms of loan.
- Credit history. Lenders will check your payment history and credit report.
- Financial stability. Lenders want to know that you’re a good financial risk.
However, each financiers will do have their own requirement based on your employment status, income, and your credit score. It’s important to know that each lender differs in how they approach debt consolidation qualifications.
- A Malaysian citizen aged between 20 and 58 years old
- Civil servants under Federal, State and selected Government Agencies or employees of selected GLCs
- Have a permanent job with at least 3 months of service in the government sector
- Minimum gross monthly income (including fixed allowances) of RM1,500
- High loan commitment, CCRIS/CTOS can apply (for selected koperasi loan)
Each lender, however, will have their own requirements based on your employment status, income, and credit score.
Banks and koperasi may be a good option because you can typically discuss your situation with a loan consultant. That consultant can review your finances, make recommendations, and possibly request exceptions that get your loan approved.
Koperasi, in particular, has a strong community focus, and they may be especially willing to assist you if you have low credit. Debt consolidation loan from koperasi are more lenient as compared to commercial bank loans because the repayment for koperasi loan is done through salary deduction via ANGKASA.
Read: 6 bank & koperasi loans for borrowers with negative CCRIS, CTOS, SAA & AKPK records.
The type of document will vary from financiers to financiers, depending on your employment type. To speed up your loan application process, make sure you have compiled all of the required documents. Here are general documents you need to prepare to apply a debt consolidation loan in Malaysia.
- A copy of your NRIC
- Certified payslips of the most recent 3 months
- A copy of bank statement that crediting your monthly salary
- Confirmation letter of employment (only if you're applying for bank & koperasi loan)
- And at least one (1) of these:
- Latest income tax form (Form B or Form EA/EC)
- Any other latest supporting document such as EPF statement, if required
Yes, if the approved amount of your new loan is higher than the outstanding balance of the old debts being settled, you will receive the remaining balance as cash.
Eligibility checks take just 2 minutes. Approval and money disbursement typically take anywhere from as early as 2 working days up to 2 weeks.
Most of the lenders offers a fixed interest rate, where the monthly repayment is fixed throughout the tenure of the financing irrespective of any changes in the Bank Negara’s base rate.
At Direct Lending, we offers a competitive flat interest rate and flexible repayment terms from bank and koperasi that can meet your needs with a fast and easy online loan application. Rates from as low as 2.82% p.a. or as fast as 2 working days. Click here to apply.
No, there are no upfront fees required to apply for a personal loan or to process your application in Malaysia. Direct Lending services are absolutely free to their consumers. If you are required to pay such fees, immediately contact the authorities. Learn more about loan scams in Malaysia by reading this article.
A personal loan is a type of unsecured loan. This means that you do not need to provide any collateral or have any guarantor in order to borrow money.
You can use your credit cards after consolidation if the account is still active and in great condition. Make sure to proceed with caution, particularly if overspending was the cause for your previous debts.
Direct Lending is an online personal loan marketplace, enabling borrowers to find, apply and receive financing that best suit them.
The personal loan products on Direct Lending are tailored for both private sector and civil servants in Malaysia.
For civil servant, we offer bank and koperasi loans that you can obtain from our established and reputable financing partners.
For private sector, you can apply for a safe personal loan from over 15 licensed lending partners in Malaysia to serve your financing needs.
Feel free to use our personal loan calculator to estimate your loan monthly instalment.
Our service is 100% FREE and will not require any payment from our customers at any time. Direct Lending has received over 9,000+ reviews rated 5-stars by our customers in our Google Business Page and Facebook.
Yes, our service is 100% free. There are no upfront payments or service fees charged to applicants.