Always strive to make full payment of your installment before or on the due date to avoid being penalised by the bank. That’s not all, your credit score will take a turn for the worse. Generally, all banks will impose a 1% fee, whereas non-banks will charge around 8% fee, calculated daily until you pay it off. For example: Overdue amount: RM875 Numbers of days overdue: 10 Late payment charge: 1% p.a. RM857 x 1% x (10 ÷ 365 days) = RM0.23 In case you are on the verge of defaulting on your personal loan, you must immediately get in touch with the bank to discuss a possible recourse on your repayments. Alternatively, you can engage Agensi Kaunseling dan Pengurusan Kredit (AKPK), a debt management program by Bank Negara Malaysia that offers free services on money management, credit counselling and debt restructuring for individuals.