Hi everyone. I have a bit of a problem and didn’t know where else to turn to. Hope some of u guys more experienced can help me out.

Basically I plan on taking out an education loan from a reputable organization (it’s not a bank). The loan requires me to have a co-applicant AND guarantor. Both have to earn a certain amount in order to qualify. The thing is, due to various reasons, I cannot ask help from any close family members because they either don’t earn the monthly income needed or they just refuse to. Toxic people.

Very uncommon issue but here is where it gets complicated. I think I’ve found a guarantor that’s willing to help me out but I’ve ran out of options for a co-applicant. Actually I currently work for a legit German-based company as a remote contractor. I started working for them at the beginning of the year and I earn enough to meet the income needed for a loan co-applicant. They pay me every month through PayPal.

I have a very close cousin that genuinely wants to help me out but he is my age, is a student and doesn’t have a stable job. We were actualy thinking of actually making him my co-applicant.. the way we will do this is open up a sole-proprietorship under his name (so it’s like self-employed), he’ll open up a current account, contribute to his epf as self-contribution monthly, and I will bear the costs by banking in the income I earn in into his current account so the bank statements match.

The monthly amount that we will be passing off as his “income” is slightly above the minimum amount required to file income tax at L/HDN. Would this work? I plan to do this starting October because I will be applying for the loan by middle of next year. How would I go about filing the taxes (that would be under his name)/borang BE?
Thank u everyone i appreciate any advice!

All this just to get an education loan? Better find some other way, do you have any employee benefit that gives out education loan?

i know it sounds like a lot of work but i have kinda ran out of options. just planning to fund my final year. ptptn isn't an option either 

regarding the employee benefits, i highly doubt they'd have that since i'm working remotely and i'm not a german national

Nowadays, applying for loan is never as easy as last few years time. We are having hard time accepting rejection, crushed and demotivated to continue purchasing our dream houses. So this is just a sharing, how we could prepare ourselves to get our loan approve.

(For people who owns business or starting their own business)
Every bank has their own appetite and each of their requirement will be different. Here I will give you few tips where every bank will definitely accept your loan without you delaying to get other documents done...
1. Already had sdn bhd business more than 2 years.

a) Remember to register your company under SSM.
b) Pay income tax Form B, be a good citizen.
c) Remember, if you pay tax. Try to pay PCB with your own account and not through your accountant company account. Trust me, this will save you alot alot of time and complexity when applying loan.
Bank will need the following documents

a. Your SSM registered cert >2 years
b. Income tax Form B
c. Your company bank statements

You are all set.
2. What if my company is less than 2 years or I work as a freelance.

a) Register a company with SSM
b) Open company bank current account
c) Register your company under KWSP
d) Contribute a fixed salary to yourself, lets'say RM6000 as your salary. Credit the amount monthly consistently form your company bank current account to your personal bank account. This will create a proper employee income proof.
e) Contribute KWSP to yourself, deduct 11% from your Rm6000 INCOME and 13% contributions from your own company.
(Bank will need to look at EPF and Bank statement credited salary as a proof of income)
f) Create your own payslips.
Now you can apply loan as an employee of your own company. Bank will need to look at you Payslips, bank statement with RM6000 credited monthly, EPF shows 11% and 13% contributed for your Rm6000 income.
This will be sufficient to apply loan.
Q&A
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Why I can't use my company tax BE form or Company bank statement to apply for loan?
--- Because bank wouldn't look at company with SSM registered less than 2 years. That's why it is hard for people who just established company to apply for loan if they didn't prepare as I stated as above---
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Why I work as hawker and credit a monthly fixed income into my own account. Still, bank wouldn't accept my loan?
---Because your income doesn't shows where it comes from, bank view this as a very vague income proof. Bank will wonder where your income comes from, even you show him picture of you goreng chay kuew teow, it is not enough. They wouldn't accept your loan as you could be a syndicate crediting your income from drugs money.
Bank is a simple minded creature, all they need is a solid document to show them. Just follow point no.2 and you can apply loan easily. No matter you are a hawker, a freelancer, someone who earn a living from money dropping from skies or had a goose that lays gold egg. No problemo.-----
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Why bank wouldn't accept my loan when I have my company registered under SSM for 1.5 year and my company profit is very solid and strong. Moreover I am a responsible citizen who pays tax!!??
--- First of all, bank is quite cocky. They want to be insured that your business is strong and solid and not crumble when wind blows, company established more than 2 years will make them believe so.......lol.... anyway, bank will only accept loan application through your company income and profit if given your company has established for 2 years or more.
Other solution? Buy a empty shell company established more than 2 years old, with transaction in their bank statement...... this is not encourageable... but oh well.. -------
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The end
Anonymous writer.

Any other good suggestions or ideas, do present it out. This is and open ended discussion.

Dear Madgenius,
Now is year 2022, I'm hope not to late to discuss some financial loan status...
My question is, if I'm a freelancer and my income are not sustainable but pass 2 year even I declare my income tax but not achievable on tax and yet I'm serving my previous commitment loan at RM 800k, as my CCRIS / CTOS scoring are excellent,

Do I still qualify to apply hire purchase loan amount at for example RM 40k - 50k ?
A simple question, how banker calculated my DSR according my income tax for 2 year report?

Hopefully u may advise me on this, as I'm really curious to learn more...
Tqtq 🙏

How much is the monthly repayment for 800k loan ?