BSN Personal Loan – Everything You Need To Know

Bank Simpanan Nasional (BSN) was established on 1 December 1974, to replace the Post Office Savings Bank, which was established in 1948. It is a bank owned by the Malaysian government. Not only that, Bank Simpanan Nasional (BSN) also provides various financial products and services to meet the needs and demands of customers in today’s world. Because of their great success, Bank Simpanan Nasional now has 390 branches in Malaysia, with its main headquarters at Wisma BSN, 117, Jalan Ampang, 50450 Kuala Lumpur.

What is a personal loan?

A personal loan is a type of installment credit provided by a financial institution (bank) to the borrower (you) in the form of a one-off cash payment. You, as the borrower, must repay the amount along with interest either in installments or monthly throughout the loan period. Personal loans are divided into secured loans (backed by collateral) and unsecured loans (no collateral required).

Types of BSN Personal Loans

BSN provides 4 types of personal loans:

1. BSN MyRinggit-i (Public Sector)

Image source: BSN 

The BSN MyRinggit-i personal financing plan offers a financing amount of up to RM200,000 with a 10-year term. This plan is offered to civil servants with permanent positions as well as contract and temporary positions. Salary eligibility is only RM1,500 per month and the profit rate is from 4.60% to 6.99% p.a.

2. BSN MyRinggit-i (Executive-1)

Image source: BSN 

BSN MyRinggit-i Executive-1 is offered to professional staff, i.e. those working as GLC staff and private staff. You just need to be 21 years old and above and have worked for more than 3 years with a monthly income of not less than RM3,000. The amount of financing offered is quite high, from RM10,000 to RM 200,000. As well as a long financing period of up to 10 years with a very reasonable and low profit rate charge ranging from 6.0% p.a. To 8.5% p.a.

3. BSN MyRinggit-i Professional

Image source: BSN 

Professionals like medical doctors, dentists, accountants, lecturers, architects, pharmacists, engineers, and more can use BSN MyRinggit-i Professional to assist them find the personal financing they require. A guarantor is not necessary and applicants can borrow up to RM400,000 with a profit rate of 2.85% to 3.30% p.a.

4. BSN MyRinggit-i (Financial Institution Employees)

Image source: BSN 

Employees of financial institutions can use BSN MyRinggit-i FIE to assist them in finding the personal financing they require. The applicant must have more than a year of experience in the banking industry and can borrow up to RM200,000 with a low-profit rate of 2.77% p.a.

Why should I choose a BSN personal loan?

Image source: The Edge Markets

1. Sharia Compliant, Tawarruq (Commodity Murabahah) is used for all types of personal loans:

This loan uses the concept of Tawarruq or Commodity Murabahah. No collateral or guarantor – As this is an unsecured personal loan (unsecured loan), you do not need to provide any collateral or guarantor to apply.

2. Bank Simpanan Nasional offers to finance up to RM200,000 (depending on the different types of personal financing loans)

3. The repayment period is offered up to 10 years

Financing period starts from 24 months (2 years) to 120 months (10 years)

4. Fixed interest rates as low as 4.60% to 5.30% (depending on different types of personal finance loans)

5. No early termination charges will apply if you intend to pay off the entire loan balance earlier than the contract. You just need to submit a written notice to BSN.

Benefits & Features of BSN Personal Loan 

A BSN personal loan can give you the following benefits:

  • Sharia-compliant personal financing loans are applied based on Tawarruq (Commodity Murabahah)
  • No processing fees and no early settlement fees
  • No guarantor or collateral is required (Unless the Bank specifically requests it)
  • Flexible repayment period of up to 10 years

Eligibility & Requirements to Apply the BSN Personal Loan 

Image source: Blog Malaysia

Individual eligibility requirements to apply for a BSN personal loan are as follows:

1. BSN MyRinggit-i (Public Sector)

  • Malaysian
  • Aged between 21 years and 60 years
  • Minimum monthly income of RM1,500
  • Type of employee:
    • Permanent employees: Those who have worked for 3 months and above
    • Contract/temporary workers: Service over 12 months
  • Government sector/GLA/GLC/organizations that have salary deduction facility through BPA
  • Account holders of BSN GIRO/-i

2. BSN MyRinggit-i (Executive-1)

  • Malaysian
  • Aged between 21 years to 55 or 60 years (subject to retirement age at the end of the funding period)
  • Minimum monthly income:
    • Permanent employees: RM3,000 per month
    • Contract/temporary workers: RM10,000
  • For permanent and contract officers and staff with at least 1 year of work experience
  • Working in the Premier Developer Panel sector, Private Hospitals, Telecommunications Companies, Licensed Financial Institutions, Multinational Companies, PETRONAS Group of Companies, Selected Private Universities and colleges and others.
  • Account holders of BSN GIRO/-i

3. BSN MyRinggit-i Professional

  • Malaysian
  • Must be at least 21 years old and not over retirement age or 60 at the end of the funding period, whichever is earlier
  • Minimum monthly income of RM3000
  • Professional types include medical doctors, dentists, accountants, lecturers, architects, engineers, pharmacists, surveyors, veterinarians, opticians/optometrists, and actuaries.
  • Minimum period in service:
    • Permanent employees : 3 months
    • Contract/temporary worker: 6 months
  • For sole proprietorship/partnership, the business has been operating for at least 2 years
  • Account holders of BSN GIRO/-i

4. BSN MyRinggit-i (Financial Institution Employees)

  • Malaysian
  • Must be at least 21 years old and not over retirement age or 60 at the end of the funding period, whichever is earlier
  • Minimum monthly income (basic salary + fixed allowance):
    • Permanent employees: RM3,000
    • Contract / temporary workers: RM10,000
  • Minimum 1 year of service in the banking industry
  • An employee of a licensed Financial Institution approved by Bank Negara Malaysia (BNM)
  • Account holders of BSN GIRO/-i

Documents Needed 

When applying for a BSN personal loan, the following documents are required:

1. BSN MyRinggit-i (Public Sector)

  • Copy of NRIC (both sides)
  • Confirmation letter from employer:
    • Name, and
    • NRIC, and
    • Position, and
    • Monthly salary, and
    • Working date, or
    • Latest EA/ EC statement for at least 1 year, and
    • The latest e-filing form or any document certified by the Inland Revenue Board (LHDN)
    • Salary slip for the last 2 months

2. BSN MyRinggit-i (Executive-1)

  • Copy of NRIC (both sides)
  • Copy of the latest 3 months salary slip
  • Latest EPF statement

3. BSN MyRinggit-i Professional

  • Payment via BSN Standing Orders:
  • Salaried workers
    • Copy of NRIC, and
    • Latest 2 months salary slip, and
    • Employer confirmation letter, and
    • Valid certification/registration with the respective Certification Authority/Membership Registration Institution, and
    • Latest income statement (Form EA/ EC/ eB/ e-BT), or
    • Salary crediting account latest 3 months bank statement, or
    • Any recent supporting documents such as EPF statements
  • Sole proprietorship/partnership
    • Copy of KP
    • Business registration
    • Applicant’s latest 6 months bank statement
    • Latest annual income statement (Form EA/ EC or eB/ e-BT) with payment receipt
    • Financial statements for the last 2 years
    • Valid certification/registration with the Certification Authority/Membership Registration Institution
  • Payment through Payroll Deduction (for salaried employees only):
    • Copy of NRIC
    • Employer confirmation letter
    • Salary Deduction Form
    • Valid certification/registration with the Certification Authority/Membership Registration Institution

4. MyRinggit-i (Financial Institution Employees)

  • Copy of NRIC (both sides)
  • Salary slip for the last 2 months
  • Letter of confirmation from the employer
  • Latest EPF statement

Fees & Charges 

Certain fees apply, including:

  • Stamp duty: According to the Stamp Duty Act 1949 (Revised 1989)
  • Processing fee: None
  • Early termination fee: None (Must give written notice 1 month in advance)
  • Late payment fee: Based on Ta’widh (compensation)
  • Wakalah fee: RM30
  • Probate fee (if applicable): RM500
  • Cash Protection-i (optional): RM530
  • Insurance/Takaful (optional): Age, term, and amount of loan/financing can affect the price

I have applied. How do I know if my application passed or not?

Usually, the result of the loan application (passed or not) will be notified via SMS, E-Mail or phone call. If you still haven’t received the result of the application after more than 14 working days, it is advised to contact the National Savings Bank (BSN) directly.

Can I apply for a BSN Personal Loan with a bad CTOS score?

No, you must make the unpaid balance in full before applying. Before reapplying, it is suggested that you continue making on-time loan payments for three months.

Who should I contact for more information on BSN personal loans?

For more information or assistance with BSN personal loans:

  • Contact Bank Simpanan Nasional at 1-300-88-1900
  • Visit your nearest Bank Simpanan Nasional branch