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How do you tell if a personal loan is the right money move? Worry not, because we’re here to help! A personal loan comes with many advantages – these typically don’t require you to offer collateral or an asset, are easy to apply and usually take lesser time to approve compared to other loans.    


On the flip side, these advantages can tempt you to apply for a loan even when you don’t necessarily need one. So, when is a personal loan the perfect option for you? Here are four scenarios where a personal loan might just work for you:  

Paying For Unexpected Expenses

Emergencies happen, and unfortunately, they are often very costly. Disasters like sudden medical emergency or costly home repairs can massively damage your finances. This is where a personal loan can come in handy.  


Quick access to the funds you need can alleviate some of the stress and heartache – and some personal loans, such as our Cash Plus Personal Loan, let you apply online and provide fast approval.


But wait..what about credit cards?


For credit card users in need of cash (i.e. not swiping the card) – your card is another option to consider. Most credit cards in Malaysia, including CIMB credit cards, allow you to take out cash from the ATM whenever and wherever you’re in need.


But what’s the difference between cash from a card and a personal loan? Here are a few quick comparisons between these two:


Differences Personal Loan Credit Card Cash Advance
Type   An unsecured loan or financing with fixed monthly payments. A credit card facility that allows you to withdraw cash from your remaining card balance. 

Varies from loan providers and can take from one to several days to complete loan disbursement.


CIMB's Cash Plus Personal Loan offers next day approval to completed application submitted via our website (excluding weekends and public holiday)

Instant cash withdrawal from the ATM or bank counter.
Amount Amount approval is based on several factors such as income & credit score.  The amount available is based on the card’s remaining credit balance. 

Late repayment fee. Some loans might have a small documentation/stamp duty fee.  


CIMB Cash Plus Personal Loan has zero applications fees - there is a late payment penalty though.   

There is usually a one-time fee for cash withdrawal.

How interest is calculated

Fixed-rate. You pay a fixed monthly payment until the tenure is completed (tenures can range from one year up to 5 to 10 years).


CIMB Cash Plus Personal Loan offers tenure of up to 5 years. 

Usually up to 18% per annum calculated on a daily rest basis from the transaction date to the date it is settled in full.


For CIMB credit card users, there is also the option of Cashlite – a hybrid of both products above where you can get cash from the available credit limit and make repayments in fixed instalments for easier money management.


So which should you choose? It all depends on the amount you need, the purpose of your loan and your repayment ability – so be sure to conduct your research and choose the best option for your scenario.  

Consolidating Debt

If you have multiple loans at high-interest rates, it can be challenging to pay them when a large chunk of your payment is used to pay off the interest. This is where a debt consolidation may be beneficial to your finances.


Consolidating multiple debts (for example, multiple credit cards) with a personal loan allows you to combine them into a single debt. You no longer have to deal with multiple payments, due dates and interest charges. But for this to work, you have to ensure that the loan interest rate and monthly payment is lower than your current ones.


Or say you found a better rate available for your current personal loan. By taking out a new personal loan at a lower interest rate, you can consolidate your existing debts to lower your monthly repayment (and shorter time frame!). Thus, you can repay your debt faster.

You Need Access to Fast Cash Without Collateral

Most personal loans are unsecured and do not require you to list collateral such as a home or vehicle to qualify. Instead, they are backed only by your creditworthiness and promise to repay the loan. This makes them easier to apply with just a few documents.


Prior to loan application, you should gather financial documents such as bank statements and employment details. For CIMB’s Cash Plus Personal Loan, the documents required are your payslips or the latest EPF statement with a minimum of 6 months’ contribution.


What else should you check? Before applying to any personal loan, be sure to check your repayment abilities and even your current credit score too – to avoid any financial stress in the future. 

Planning Your Budget and Managing Your Finances


A personal loan can sometimes also serve a financial tool to boost and to manage your cash flow. Its flexibility allows borrowers to access the cash they need and create a monthly payment that fits into their budget and their capabilities.


However, it is important to note that the personal loan interest rate increases the longer the term of your loan. Learn how to calculate your personal loan interest and repayment here



Personal loans can be helpful when used responsibly and not for non-essential reasons. If you need to borrow money and prefer the stability of a fixed repayment schedule and monthly payment, a personal loan is exactly what you need.


Before submitting your loan application, consider the pros and cons of personal loans and compare loan rates with multiple lenders. All the best! 



This article is for informational purposes only and CIMB does not make any representation and warranty as to the accuracy, completeness and fairness of any information contained in this article. As this article is general in nature, it is not intended to address the circumstances of any particular individual or entity. You are advised to consult a financial advisor or investment professional before making any decisions based on the information contained in this article. CIMB assumes no liability for any consequences arising from your reliance on the information presented here.