Hey everyone. I'm a bachelor who started working in the private sector recently for about 4 months. I earn RM 3k per month with no liabilities to be paid, just the usual KWSP and SOCSO.

I would like some advices on Personal Loans. I have googled a bit around a found a few banks offering pretty low rates. However, then it dawned on me. I have absolutely no idea how loans work

I did find one plan, the Alliance Bank CashFirst Personal Loan which offers a low fixed interest rate of 6.9% per annum.

I am planning to borrow 10k. Based on the calculation i did at Personal Loan Calculator it says for 10k = 36 months x RM 308.73.

Sounds affordable, with all their benefits listed on this website Here.

My question is, is there more to this than meets the eye? I'm worried about hidden charges, difference between fixed rates and effective rates etc. As I'm kinda noob in these things would anyone please explain to me how personal loans works in general?

Your explanation is greatly appreciated

Would you please elaborate on this matter? I thought that since I'm debt free its easy for me to apply for a loan.

As for the reason, my younger siblings started entering universities this year and the next so i need some cash to get them started before the PTPTN kicks in (tuition fees, laptops etc.). Me and my elder sister only have a few K between us to spare so we thought a short term loan is the way to go.

Thanks for your time and explanation. Now I understand the difference of flat rate and effective rate.
Gonna discuss this with family on how to approach this dilemma. I understand now that personal loan might not be the best option after all.

Thanks guys. Really Appreciate it.

Yeah I saw theirs its quite lower compared to the rest. About credit cards, lets say i used about 1k. At the end of the month I need to pay at least 100 since its 9% interest to avoid getting penalties?

What if I dont have any charges for the credit card for that month. That means i havent used it. Do i need to pay anything (service charge, fee etc.)