Thursday, May 28, 2009

Personal loan to start a business?

I needed quite a sum of money to start a new business.

It was down to the banks to lend me the money.

The obvious choice was to apply for a personal loan. After doing some research, it seemed like the best package and rate offered was provided by Bank Rakyat (5-6.5% based on tenure). It was surprising to see most of the commercial banks in Malaysia have high interest rates for personal loans (between 8-12%)...and we wonder how on earth do the banks make a lot of money.

The only problem with getting a personal loan with Bank Rakyat, is that my company has to be in the list of panels with the bank. My company, however, is not a panel. The panel registration with Bank Rakyat would take at least a month for approval.

That was when I decided to fall back on my last option, the one which I've learned a year ago from financial blogs and web sites but haven't really mastered or put it to use effectively. I'll write about how I used OD or Overdraft Facility to start my new business in my future post.

2 comments:

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Teuku Hasan said...

Hi,

About personal loan bank rakyat current rates is 3.something.To become panel company maybe take sometime but the most important whether your HR or Account department agree to make salary deduction from staf and pay to bank rakyat.

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