5 Best Bank & Cooperative (Koperasi) Personal Loan for Government Servants in 2024

Best Personal Loan 2024 for Government Servant

In this article, we compiled five alternatives of the Best Bank and Koperasi Loans for Government Servants in 2024. These 6 government loans will suit borrowers with different requirements and credit backgrounds, including list of personal loan for AKPK credit records – from financing with low interest to approval as fast as 2 working days. Borrowers with high outside payslip commitment or who have negative CCRIS and CTOS records can also access safe and affordable koperasi personal loans.

---

 1. Kuwait Finance House (MCCM)

---

2. Public Islamic Bank – MCCM

Advantages

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

(2) Cost of living calculation is lower and more lenient compared to 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)

(4) Does not require employer signature for existing customer

Considerations

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

Fixed Financing Rate: 3.99% (for loan above RM200K), 4.65% for RM50K to RM200K loan and 5.20% (for loan below RM50K)

Payout: 98% of the financing amount

Maximum Loan Amount: RM350,000 (up to 10 years financing)

Minimum Income: RM1,500 per month

Working Status: Permanent job with a minimum of 12 months of service (6 months of service for selected ministries)

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 is generally within a week from the submission of complete documents.

This financing is also suitable for civil servants who intend 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 suburban areas. This is in 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) are 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 to your bank account.

Apply Public Islamic Bank – MCCM Personal Loan now

---

3. Ambank (MCCM) 

Advantages

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

(2) Fast processing with pre-approval within 1 week

(3) Outstanding PTPTN debt can apply 

Considerations

(1) Borrowers with AKPK, Special Attention Account are not eligible to apply. 

(2) Applicants with CCRIS arrears more than 2 months and CTOS record exceed RM3,000 are not eligible to apply.

Fixed Financing Rate: 3.99% p.a. (RM50K - RM250K loan) and 4.45% p.a. (RM5K - RM49K)

Payout: Approximately 98% of the financing amount

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

Minimum Income: RM2,000 per month

Working Status: Permanent job with minimum 3 months of service

Processing Time: 1-2 week 

Repayment: ANGKASA deduction

Monthly Membership Fee: No

Takaful/Insurance Protection: Yes

Syariah Compliant: Yes

Commentary:

This personal loan is provided by Ambank Islamic (a subsidiary of Ambank) with salary deductions facilitated by MCCM Resources Sdn Bhd through Biro Angkasa. Ambank (MCCM) offers government personal loans with a fixed interest rate as low as 3.99% per annum for the public sector or government-related GLC companies.

Government employees can apply for loans up to RM250,000 with a repayment period of up to 10 years. This makes it suitable for those looking to consolidate debts into one account and achieve lower monthly installments through a lower interest rate.

This loan is one of the personal loans that provides the lowest interest rates and high payouts through salary deductions for public servants.

Ambank will consider external commitments outside the salary slip when assessing your debt service ability. Applicants with negative CTOS records or trade references with non-bank institutions (such as Courts, Singer, Telco, licensed money lenders/cooperatives) are still eligible to apply. However, borrowers with AKPK records or Special Attention Accounts (SAA) are not eligible to apply. If you have a loan from a bank with arrears of 2 months or more in the latest period, you need to settle it first.

After obtaining the employer's confirmation letter, agreeing to the loan package, and signing the Biro ANGKASA form, you can go to the nearest Ambank branch to sign the government personal loan offer letter, and the financing amount will be credited directly to your bank account.

Apply Ambank MCCM Personal Financing now

---

4. MBSB (Koperasi Ukhwah)

Advantages

(1) Low interest rate (4.35%) with high payout (89%) compared to most koperasi loans in the market

(2) High outside payslip commitment eligible to apply

(3) Does not include outside commitment

Considerations

(1) Borrower with CCRIS/CTOS problem are still eligible to apply in accordance to condition set by Ukhwah. Borrower with SAA issue can apply but is required to settle them using this loan

(2) Borrower with AKPK record is not eligible to apply

Fixed Financing Rate: 4.35% p.a. (loan under 3 years) and 4.99% (for loan 4 until 10 years)

Payout: Approximately 89% of the financing amount

Maximum Loan Amount: RM200,000 (up to 10 years financing)

Minimum Income: RM1,800 per month

Working Status: Permanent job with minimum of 8 months of service

Processing Time: 1-2 weeks

Repayment: ANGKASA deduction

Monthly Membership Fee: Yes (RM30 membership fee)

Takaful/Insurance Protection: Yes

Syariah Compliant: Yes

Commentary:

This cooperative personal loan is offered by Koperasi Ukhwah Malaysia Berhad ("Koperasi Ukhwah"). Koperasi Ukhwah was established in 1998. Ukhwah cooperative activities include personal financing for government employees and statutory bodies, Ar-Rahnu, real estate, Ukhwah Care, and Ukhwah Computer. Koperasi Ukhwah is registered under the Cooperative Act (Akta Koperasi) 1993.

Government employees can apply for loans up to RM200,000 for a period of up to 10 years with a fixed interest rate as low as 4.35% per annum. This makes it suitable for those looking to consolidate debts into one account and achieve lower monthly installments through a lower interest rate.

Koperasi Ukhwah will not consider external commitments outside your salary slip when assessing your debt service ability. Therefore, applicants with CCRIS or CTOS records are accepted, but loan approval is subject to Ukhwah's decision. However, applicants with Special Attention Accounts (SAA) records need to be clarified through available loans. Applicants with AKPK records are not eligible to apply.

Apply Koperasi Ukhwah MBSB Personal Financing now

---

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

Advantages

(1) One of the fastest personal loans 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 rates available, which may cause confusion to borrowers

(2) Some of the financing packages are of high interest rates but 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 scores:

• 6.65% rate p.a. with 84% payout (for high credit score borrower)
• 7.99% rate p.a. with 79.5% payout (for high credit score borrower)
• 8.88% rate p.a. with 77% payout (for low credit score borrower)
• 9.99% rate p.a. with 74% payout (for low credit score borrower)

Fixed Financing Rate: From 6.65 p.a.

Payout: From 84% of the financing amount, down to 74% depending on the financing packages

Maximum Loan Amount: RM300,000 (up to 10 years financing)

Minimum Income: RM1,500 per month

Working Status: Permanent job with minimum of 6 months of service (2 years of service needed for contract workers working with KEMAS)

Processing Time: As fast as 2 working days

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

Monthly Membership Fee: No

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 loans 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 salaries 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 affected.

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.

The main advantage of YIR is that there is no monthly membership fee for borrowers, reducing the burden on them. Most other cooperative loans in the market impose monthly membership fees.

There is feedback from YIR and YYP customers that they are charged a fee of RM100 as an upfront payment to obtain settlement statements for each of their YIR/YYP loans. The processing time for these settlements is approximately 3 weeks. Settlement statements are not required if overlapping with a new loan from Yayasan Ihsan Rakyat or Yayasan Dewan Perniagaan Melayu Perlis Berhad.

Apply Yayasan Ihsan Rakyat now
Apply Yayasan Dewan Perniagaan Melayu Perlis now

---

Infographic: 5 Best Bank & Koperasi Loans for Government Worker

---

Government Loans for Borrowers with Salary of RM1,500

Sometimes you may be faced with a need for some extra money to fund irregular expenses such as a new car, home furniture home deposits, etc. You might also want to get a personal loan for repaying outstanding debts.

A personal loan is useful for gaining some fast cash for the expenses mentioned above, but some of us might not be eligible for bank loans with a low salary. Therefore, we have listed a few government personal loans especially for civil servants with a salary of RM1,500, including fixed allowance.

All of these government loan are Islamic personal loan and can be applied safely through the Direct Lending platform.

• RCE Yayasan Ihsan Rakyat Personal Loan
• Ambank – MCCM Personal Loan
• Public Islamic Bank – MCCM Personal Loan
• KOBETA Personal Loan

---

What is the process to apply for personal loans through Direct Lending platform?

1. Obtain your rate

All you need is a few minutes to fill up an online application form for immediate eligibility checking. You do not need to provide any personal documents during this process. It is safe and guaranteed.

2. Send your documents

If you are eligible, provide your self identification documents and income statement to complete the application. We provide various ways to have the necessary documents delivered to your doorstep. Just choose the one that is suitable for you.

3. Agree to terms and verify your information

Check and sign the loan agreement. The credit provider that you have chosen will contact you to verify the application details.

4. Receive money credited to your bank account

The borrowed funds will be credited to your bank account as fast as 2 working days.*

---

Video:Best Bank & Koperasi Personal Loan for Government Workers 2024

Watch this video for more explanation on Koperasi Personal Loans in Malaysia.

Conclusion

Please note that all the government 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 be approved later. You also don’t need a loan guarantor to apply for it.

If you want to find out more about what is a personal loan and 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 helps government servants to search, compare and apply 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.

(This article was originally published on the 16th April 2020 and updated on the 19th January 2024).