Personal Loan RM400K Malaysia 2026 — Your Options for Large Loans
Quick answer: No bank offers RM400,000 unsecured personal loan in Malaysia. For this amount, you need cash-out refinancing (requires property with sufficient equity) at rates of 3.5-4.5% p.a. — actually cheaper than personal loans anyway.
RM400K is 100% secured loan territory. Here's how to get it.
Why No Bank Offers RM400K Personal Loan
| Bank | Maximum Unsecured | Gap to RM400K |
|---|---|---|
| Bank Islam | RM300,000 | RM100K short |
| Maybank | RM150,000 | RM250K short |
| RHB | RM150,000 | RM250K short |
| CIMB | RM100,000 | RM300K short |
| Public Bank | RM150,000 | RM250K short |
Bottom line: The highest unsecured personal loan is Bank Islam at RM300K (public sector only). RM400K requires collateral.
Your Only Real Option: Cash-Out Refinancing
What is Cash-Out Refinancing?
You take a new, larger mortgage on your property. The difference between your new loan and old balance = cash in your pocket.
Example:
- Property value: RM700,000
- Current mortgage: RM200,000
- New loan (80% LTV): RM560,000
- Cash you receive: RM360,000
To get RM400K, you need more equity.
Property Requirements for RM400K Cash-Out
| Property Value | Max New Loan (80% LTV) | Current Mortgage | Cash Available |
|---|---|---|---|
| RM600,000 | RM480,000 | RM80,000 | RM400,000 ✅ |
| RM700,000 | RM560,000 | RM160,000 | RM400,000 ✅ |
| RM800,000 | RM640,000 | RM240,000 | RM400,000 ✅ |
| RM1,000,000 | RM800,000 | RM400,000 | RM400,000 ✅ |
Formula:
Property value needed = (RM400K + Current mortgage) ÷ 0.80
If you owe RM200K on mortgage:
(RM400K + RM200K) ÷ 0.80 = RM750,000 property value needed
Cash-Out Refinancing Rates (2026)
| Bank | Rate | Notes |
|---|---|---|
| Bank of China | From 2.85% p.a. | Promotional |
| Maybank | 3.5-4.0% p.a. | Existing customers |
| CIMB | 3.5-4.2% p.a. | Standard |
| RHB | 3.8-4.3% p.a. | Standard |
| Public Bank | 3.6-4.1% p.a. | Good for existing customers |
Compare to personal loans at 6-8% — refinancing saves you tens of thousands.
Monthly Repayment Table for RM400,000
| Tenure | 3.5% Rate | 4.0% Rate | 4.5% Rate | 5.0% Rate |
|---|---|---|---|---|
| 10 years | RM3,961 | RM4,049 | RM4,139 | RM4,230 |
| 15 years | RM2,860 | RM2,958 | RM3,060 | RM3,164 |
| 20 years | RM2,319 | RM2,424 | RM2,532 | RM2,643 |
| 25 years | RM2,002 | RM2,111 | RM2,224 | RM2,341 |
| 30 years | RM1,796 | RM1,909 | RM2,027 | RM2,147 |
Advantage of refinancing: You can stretch to 30 years if needed, keeping monthly payments manageable.
Minimum Income for RM400K Loan
Using 60% DSR rule:
| Tenure | Monthly Payment (4% rate) | Min Salary (no other debt) |
|---|---|---|
| 15 years | RM2,958 | ~RM7,000 |
| 20 years | RM2,424 | ~RM6,000 |
| 25 years | RM2,111 | ~RM5,500 |
| 30 years | RM1,909 | ~RM5,000 |
With existing debts (car RM900 + cards RM600 = RM1,500):
| Tenure | Total Monthly | Min Salary |
|---|---|---|
| 15 years | RM4,458 | ~RM11,000 |
| 20 years | RM3,924 | ~RM9,500 |
| 25 years | RM3,611 | ~RM9,000 |
| 30 years | RM3,409 | ~RM8,500 |
Step-by-Step: Getting RM400K Through Refinancing
Phase 1: Preparation (Week 1-2)
- Get your property valued (rough estimate via PropertyGuru/iProperty)
- Check your current mortgage balance
- Calculate: (Property value × 80%) - mortgage balance ≥ RM400K?
- Get CTOS/CCRIS report — must be clean
- Calculate your DSR with new loan amount
Phase 2: Bank Shopping (Week 3-4) 6. Approach 2-3 banks for quotes 7. Compare: interest rate, lock-in period, legal fees 8. Negotiate — mention competitor offers 9. Choose best offer
Phase 3: Application (Week 5-10) 10. Submit full documentation 11. Bank orders official valuation 12. Legal process begins 13. Loan agreement signing 14. Disbursement (cash hits your account)
Total timeline: 6-10 weeks
Documents Required for RM400K Refinancing
Personal documents:
- MyKad (IC)
- Latest 6 months payslip
- Latest 6 months bank statements
- EPF statement
- Latest EA Form
- Employment confirmation letter
Property documents:
- Original Sale & Purchase Agreement
- Property title (Grant/Strata)
- Current loan statement
- Quit rent and assessment receipts
- Property insurance policy
RM400K Loan FAQ
Can I get RM400K personal loan?
No Malaysian bank offers RM400K unsecured personal loan. You need cash-out refinancing using property as collateral.
What property value do I need for RM400K?
Depends on your current mortgage. If you owe RM200K: need ~RM750K property. If mortgage is paid off: need ~RM500K property.
How long does RM400K refinancing take?
6-10 weeks typically. Includes valuation (1-2 weeks), legal processing (4-6 weeks), and disbursement.
What's the interest rate for RM400K?
Cash-out refinancing: 3.5-4.5% p.a. Much lower than personal loans (6-8%).
Can I get RM400K with bad credit?
Very difficult. Banks require clean CCRIS for large refinancing. Clear any issues first (6-12 months).
What's the monthly payment for RM400K?
At 4% over 20 years: ~RM2,424/month. Over 25 years: ~RM2,111/month. Over 30 years: ~RM1,909/month.
Is it safe to use my house for RM400K loan?
Yes, if you can afford repayments and use funds wisely. Don't refinance for unnecessary spending. Best uses: debt consolidation, renovation, business capital.
What Should RM400K Be Used For?
| Purpose | Verdict | Why |
|---|---|---|
| Debt consolidation | ✅ Excellent | Clear all debts at lower rate |
| Home renovation | ✅ Excellent | Increases property value |
| Business expansion | ✅ Good | If business is viable |
| Children's education | ✅ Good | Long-term investment |
| Medical emergency | ✅ Essential | Health comes first |
| Second property deposit | ⚠️ Careful | Leveraging on leverage |
| Wedding | ⚠️ Overkill | Do you need RM400K wedding? |
| Investment/trading | ❌ Never | Don't gamble with your home |
| Lifestyle/travel | ❌ Never | Not worth risking property |
Cost Comparison: RM400K Over 20 Years
| Rate | Monthly | Total Paid | Interest Cost |
|---|---|---|---|
| 3.5% | RM2,319 | RM556,560 | RM156,560 |
| 4.0% | RM2,424 | RM581,760 | RM181,760 |
| 4.5% | RM2,532 | RM607,680 | RM207,680 |
| 5.0% | RM2,643 | RM634,320 | RM234,320 |
Difference between 3.5% and 5%: RM77,760 over 20 years
Shop around for the best rate — it's worth the effort.
Alternative: Remortgage (Fully Paid Property)
If your property is fully paid off, you can remortgage:
Example:
- Property value: RM600,000
- Outstanding: RM0
- New loan (80% LTV): RM480,000
- You receive: RM480,000 cash
Same low rates as refinancing (3.5-4.5%), with full property equity available.
Ready for RM400K? Let Us Help
Cash-out refinancing is the path for RM400K. Tell us your property details and we'll connect you with the right banks.
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