BSN MyRinggit-i for Government Servants is a Shariah-compliant personal financing facility under the Bai’ al-‘Inah concept, offered by Bank Simpanan Nasional (BSN). It is for civil servants, employees of statutory bodies, and selected government-linked companies (GLCs) who need financial support for purposes such as education, medical expenses, debt consolidation, home renovation, or other personal commitments. The financing amount typically ranges from RM5,000 up to RM400,000, subject to eligibility and repayment capacity, with a maximum tenure of 10 years.
This facility comes with competitive profit rates starting from 3.50% per annum (fixed) and convenient salary deduction via Biro Perkhidmatan Angkasa (BPA) or employer salary deduction. Applicants must be Malaysian citizens, earn a minimum monthly gross income of RM1,500, and maintain a BSN GIRO or GIRO-i account. Supporting documents such as recent salary slips, NRIC copy, and employer confirmation are required during the application.
BSN Personal Loan for Government Servants
Who Is Eligible for BSN MyRinggit?
Eligibility for BSN MyRinggit-i (Public Sector) is open to Malaysian citizens who are permanent or contract employees in the government sector, statutory bodies, or selected GLCs. Applicants must be aged 21 to 60 years at the time of application, with a minimum monthly gross income of RM1,500. Permanent employees generally require at least 3 months of confirmed service, while contract staff must have at least 12 months of continuous service.
Repayment is made via salary deduction through Biro Perkhidmatan Angkasa (BPA) or employer’s payroll system, ensuring repayment convenience. The required documents include a copy of NRIC, latest 3 months’ salary slips, and an employer confirmation letter. Depending on the applicant’s profile, BSN may also request bank statements, EA forms, or additional proof of service before final approval.
What Are the Loan Amounts and Tenures Available?
BSN MyRinggit-i (Public Sector) offers financing amounts ranging from RM5,000 up to RM400,000, subject to a maximum 60% of monthly salary deduction (including other existing commitments). The repayment tenure is from 2 years up to 10 years, giving borrowers flexibility to choose an installment plan that matches their income level.
The financing is offered at a fixed profit rate, starting as low as 3.50% p.a. (flat) depending on the applicant’s income level and employer category. Unlike conventional loans, this is based on Islamic financing principles (Tawarruq), and there is no floating rate option tied to the Standardised Base Rate (SBR). Borrowers may also opt for Takaful coverage, which provides protection in the event of death or permanent disability during the financing tenure.
What Interest Rates and Fees Apply?
Interest rates for fixed-rate loans start at 4.60% p.a., rising to 5.30% p.a. based on income and loan amount. Floating rates follow the SBR framework, currently at 3.00% as of 2025. Late payment charges incur a 1% annual penalty on overdue amounts, while early settlements attract no fees.
Additional costs include a RM30 Wakalah fee and stamp duty under the Stamp Act 1949. Optional Perlindungan Tunai-i (insurance) costs RM318. BSN waives processing fees but charges RM45 for certified document copies and RM10 for annual financing statements. These fees are typically deducted during disbursement.
What Are the Repayment Examples for BSN MyRinggit-i (Public Sector)?
The BSN MyRinggit-i (Public Sector) offers financing with flexible tenures and competitive profit rates, making it suitable for government employees seeking manageable monthly installments. Repayment is deducted directly through Biro Perkhidmatan Angkasa (BPA), ensuring convenience and reducing the risk of missed payments. The following table provides an illustration of monthly installments based on a flat profit rate of 3.50% per annum. Actual rates may vary depending on employer category, income bracket, and whether Takaful coverage is included.
| Loan Amount | Tenure | Monthly Installment (Approx.) | Total Payment |
|---|---|---|---|
| RM10,000 | 5 years (60 months) | RM188 | RM11,280 |
| RM30,000 | 5 years (60 months) | RM563 | RM33,780 |
| RM50,000 | 10 years (120 months) | RM583 | RM69,960 |
| RM100,000 | 10 years (120 months) | RM1,166 | RM139,920 |
| RM200,000 | 10 years (120 months) | RM2,333 | RM279,840 |
This table demonstrates how the loan scales with different amounts and tenures, giving borrowers the flexibility to choose a repayment plan that matches their financial capacity. For example, a RM50,000 loan over 10 years requires an affordable monthly installment of about RM583, while larger financing such as RM200,000 over the same period would involve RM2,333 monthly. Borrowers may also opt for Takaful coverage, which provides added protection but slightly increases the monthly repayment.
What Are the Repayment Terms and Penalties?
Repayments for BSN MyRinggit and MyRinggit-i are made through fixed monthly installments over the selected tenure, with payments usually deducted via Biro Perkhidmatan Angkasa (BPA) for government employees. This ensures a consistent repayment schedule and reduces the risk of missed payments.
For late payments, a 1% per annum charge is imposed on the outstanding balance. In the Islamic financing option (MyRinggit-i), this charge is applied as Ta’widh (compensation), in line with Shariah principles, and is capped at 1% p.a. during the financing period.
Is Early Settlement Allowed?
Yes, early settlement is allowed without penalty. Borrowers are required to notify BSN in writing and settle the outstanding balance, which may include the principal, accrued profit, and any related charges up to the settlement date. This flexibility is advantageous for those who wish to use lump-sum funds such as bonuses, gratuities, or inheritance to clear their financing early.
Consistent and timely repayment not only avoids penalties but also helps borrowers maintain a good credit record, which can improve their chances for future loan approvals with BSN or other financial institutions.
How Does the Application Process Work?
The BSN MyRinggit application process can be initiated either online through BSN’s official portal or by visiting the nearest BSN branch. Applicants must submit the required supporting documents, which generally include a copy of the NRIC, the latest salary slips, and an employment verification letter. Once submitted, BSN typically takes up to five working days to process applications, with approved funds disbursed directly into the borrower’s BSN GIRO or BSN GIRO-i account.
Repayments are made through mandatory salary deductions via the Accountant General’s Department (BPA), ensuring regular and timely instalments. In certain cases, such as borrowers with multiple existing loans or weaker credit profiles, a guarantor may be required. Guarantors must be permanent government employees with at least six months of confirmed service. As part of the evaluation, BSN reviews applicants’ CCRIS records and repayment track records, giving preference to those with consistent financial discipline.
Are There Shariah-Compliant Alternatives?
Yes, BSN MyRinggit-i is the Shariah-compliant financing alternative structured under the Tawarruq concept. It provides the same financing amounts (RM5,000 up to RM400,000) and tenures (1 to 10 years) as the conventional BSN MyRinggit, but it is structured through commodity murabahah transactions to ensure compliance with Islamic principles and the avoidance of riba (interest).
The profit rates for MyRinggit-i are competitive, generally ranging between 4.60% and 5.30% p.a., depending on tenure and risk profile. Unlike the conventional option, Ta’widh (compensation) at 1% p.a. applies for late payments instead of conventional penalty interest. Borrowers may also opt for Takaful coverage rather than conventional insurance, ensuring protection in accordance with Shariah requirements.
Eligibility criteria and documentation requirements remain essentially the same as MyRinggit, making the application process straightforward. This alternative is particularly appealing for Muslim borrowers seeking financing that aligns with Shariah principles while maintaining similar flexibility and benefits as the conventional option.
What Is the Difference Between BSN MyRinggit and BSN MyRinggit-i?
The main distinction lies in the financing structure. BSN MyRinggit operates as a conventional personal loan, while BSN MyRinggit-i is Shariah-compliant under the Tawarruq (Commodity Murabahah) concept. Both products share similar financing amounts, tenures, and repayment flexibility, but the Islamic option replaces conventional penalties with Ta’widh (compensation) and substitutes insurance with Takaful protection. This makes MyRinggit-i suitable for borrowers seeking financing aligned with Islamic principles, without compromising on accessibility or loan features.
| Feature | BSN MyRinggit (Conventional) | BSN MyRinggit-i (Islamic) |
|---|---|---|
| Financing Concept | Conventional personal loan | Shariah-compliant via Tawarruq (Commodity Murabahah) |
| Amount | RM5,000 – RM400,000 | RM5,000 – RM400,000 |
| Tenure | 1 – 10 years | 1 – 10 years |
| Rates | Fixed / Floating (SBR + margin) | Profit rate 4.60% – 5.30% p.a. |
| Late Payment | 1% p.a. penalty | Ta’widh (compensation) capped at 1% p.a. |
| Insurance / Takaful | Conventional insurance (optional) | Takaful protection (optional) |
| Early Settlement | Allowed without penalty | Allowed without penalty |
| Eligibility | Malaysian citizens, Gov/GLA/GLC employees | Same as conventional MyRinggit |
How Does BSN MyRinggit Compare to Other Government Loans?
BSN MyRinggit offers several advantages compared to other government-linked loans. One key benefit is the lower minimum income requirement, set at RM1,500 monthly, while many banks start from RM2,000. Additionally, BSN provides one of the highest financing ceilings, up to RM400,000, compared to Agrobank’s limit of RM250,000. This makes it particularly attractive for civil servants seeking larger financing amounts.
When comparing interest or profit rates, RHB’s government sector personal financing starts around 5.75% per annum, whereas Public Islamic Bank’s Bai‘ Al-‘Inah financing begins at 3.99% per annum but with a much lower maximum amount of RM150,000. BSN’s unique salary deduction facility through the Biro Perkhidmatan Angkasa (BPA) also reduces the risk of default, allowing more competitive rates. For borrowers, the most suitable option depends on income level, financing needs, and repayment capacity, and it is advisable to use comparison tools such as RinggitPlus or iMoney before applying.
What Documents Are Required for Guarantors?
Guarantors for BSN MyRinggit are required to submit the same supporting documents as the main applicant, including a copy of their NRIC, recent salary slips, and an official employment verification letter. To qualify, guarantors must be permanent government employees with at least six months of confirmed service. As guarantors share legal liability for repayments, their credit records are also assessed to ensure repayment ability.
In most cases, BSN prioritizes individual loan applications without guarantors. However, for applicants with irregular income patterns or weaker credit profiles, a guarantor may be requested. In such cases, guarantors must also complete and sign additional documents, particularly the Surat Akuan Penjamin (Guarantor Declaration Form), which formalizes their responsibility in the financing agreement.
Can Blacklisted Individuals Apply?
Applicants with negative CCRIS or CTOS records are not automatically disqualified from BSN MyRinggit financing. Each case is reviewed individually, and applicants who can demonstrate improved repayment discipline, such as consistent salary deductions or settlement of previous arrears, may still be considered. In such cases, BSN may offer smaller financing amounts or shorter repayment tenures to reduce risk.
However, individuals with active bankruptcy status or unresolved legal judgments are strictly ineligible. Those with serious defaults are encouraged to seek financial counseling or debt management programs before reapplying, as this improves the likelihood of approval and strengthens future creditworthiness.
Where Can Borrowers Access BSN Customer Support?
Borrowers can contact BSN’s Contact Centre at 1300 88 1900 for matters related to loan applications, repayment schedules, or required documents. For in-person services, assistance is available at BSN branches nationwide, with branch locations published on BSN’s official website. Online, BSN provides loan calculators, product information, and downloadable application forms, offering convenience for both new and existing customers.
For complaints or disputes, BSN adheres to its Customer Service Charter, which ensures that all enquiries receive a response within five working days. The bank also makes available Product Disclosure Sheets (PDS) and an FAQ section on its website, enabling borrowers to review detailed financing terms and key information transparently before making decisions.