AEON Credit Service (M) Berhad

Company Overview and Background in Malaysia

AEON Credit Service (M) Berhad, officially incorporated in December 1996 and commencing operations the following year, has established itself as a significant player in Malaysia's consumer financing landscape. Publicly listed on Bursa Malaysia, the company functions as a subsidiary of AEON Financial Service Co., Ltd. Japan, bringing international financial expertise to the local market. Its business model centers on providing a wide range of financing options, from easy payment schemes and personal financing – available in both Islamic (Shariah-compliant) and conventional formats – to credit cards, as well as hire-purchase for automobiles and motorcycles.

The company strategically targets the M30 to M40 income segments within Malaysia, serving salaried employees, self-employed individuals, and general lifestyle consumers. It aims to meet their needs for both unsecured and asset-backed financing. With a robust network of over sixty branches and service centers nationwide, complemented by a strong digital presence, AEON Credit has cultivated a substantial customer base, exceeding 1.2 million active users, predominantly individuals aged between twenty-five and forty-five.

Loan Products and Services Offered

AEON Credit Service (M) Berhad offers a comprehensive suite of financial products tailored to various consumer needs:

• Personal Financing-i: This Shariah-compliant personal financing option is available for amounts ranging from a minimum of RM 1,000 up to RM 100,000. It targets individuals seeking funds for various personal needs without requiring collateral.
• Auto Financing HP-i: Designed for vehicle purchases, this hire-purchase product covers amounts from RM 5,000 to RM 300,000. It requires the vehicle title as collateral.
• Motorcycle Financing: Catering to two-wheeler enthusiasts, this product offers financing from RM 1,000 to RM 50,000, with the bike registration serving as collateral.
• Payment Cards (VISA/MasterCard): AEON Credit provides credit cards with limits extending up to RM 50,000, offering a revolving credit facility for everyday purchases and cash advances.
• Easy Payment Scheme: A popular choice for lifestyle purchases, this scheme allows financing from RM 100 to RM 20,000 for various goods, often available at partner retail outlets.

Interest Rates, Fees, and Terms

Understanding the financial implications is crucial for any borrower. Here is a breakdown of the typical interest rates, fees, and terms for AEON Credit's key products:

• Personal Financing-i:
  • Interest Rate: Flat rate from 0.66% to 1.50% per month, equivalent to 7.92% to 18% per annum.
  • Tenure: Flexible repayment periods from 6 to 84 months.
  • Fees: A processing fee of RM 100 to RM 150 applies. Late payment incurs a charge of 1% per annum on the overdue amount. No collateral is required.
• Auto Financing HP-i:
  • Interest Rate: Indicative rates between 2.0% to 2.5% per month, which translates to 24% to 30% per annum.
  • Tenure: Repayment terms range from 12 to 84 months.
  • Fees: An administrative fee of 1% of the loan amount. The vehicle title serves as collateral.
• Motorcycle Financing:
  • Interest Rate: Indicative rates from 1.8% to 2.2% per month, or 21.6% to 26.4% per annum.
  • Tenure: Repayment periods from 12 to 60 months.
  • Fees: A processing fee of RM 100. The bike registration is used as collateral.
• Payment Cards (VISA/MasterCard):
  • Interest Rate: For purchases, rates are 15% to 18% per annum. Cash advances carry a higher rate of 18% to 20% per annum.
  • Tenure: Revolving credit.
  • Fees: An annual fee of RM 60. Late payment incurs a fee of RM 100.
• Easy Payment Scheme:
  • Interest Rate: Often promotional rates from 0% to 1.5% per month.
  • Tenure: Short-term, typically 1 to 12 months.
  • Fees: A processing fee of 0.5% to 1%. No collateral is required.

Application Process, Mobile App, and Regulatory Status

AEON Credit has streamlined its application process, offering multiple convenient channels for Malaysian consumers:

• Channels: Applications can be submitted through the AEON Wallet Malaysia mobile application, via their official website portal (myaeoncredit.com.my), or in person at any of their sixty-plus branches and service centers located nationwide.
• Onboarding and KYC: The company employs digital e-KYC (electronic Know Your Customer) procedures, requiring applicants to scan their Malaysian Identity Card (NRIC), perform a liveness check, and provide proof of income such as EPF statements, payslips, or bank statements for both salaried and self-employed individuals. A telemarketing pre-screen with an OTP (One-Time Password) verification might also be part of the initial steps.
• Credit Scoring: AEON Credit uses a proprietary credit scorecard that evaluates factors like income, employment tenure, debt-to-income ratio, and data from credit bureaus to assess applicant eligibility and risk.
• Disbursement Methods: Approved funds can be disbursed quickly, sometimes instantly to an AEON Member Plus Visa Card for amounts up to RM 10,000. Larger sums or other preferences are typically disbursed via bank transfer to a current or savings account within one to three days. ATM cash withdrawals are also an option through AEON branches.

Mobile App Features and User Experience

The AEON Wallet Malaysia mobile application, available on both iOS and Android platforms, is a cornerstone of the company's digital strategy. It boasts strong user ratings, averaging 4.5 stars on the App Store and 4.6 stars on Google Play. Key features include:

• Online loan application and tracking.
• Access to statements and transaction history.
• Convenient repayment options.
• Credit card management functionalities.
• Push notifications for alerts and reminders.

Customer feedback generally praises the app's ease of use and the speed of approval for financing requests. However, some users have noted a desire for greater clarity regarding processing fees and the communication of late payment penalties.

Regulatory Status and Licensing

AEON Credit Service (M) Berhad operates under strict regulatory oversight in Malaysia. It is regulated by Bank Negara Malaysia (BNM) under the Moneylenders Act 1951 for its money-lending services and the Financial Services Act 2013 for its Islamic financial products. The company is also a member of various credit reporting agencies, ensuring transparency and adherence to credit reporting standards.

For its Shariah-compliant products, AEON Credit maintains robust Shariah governance, subject to annual audit reports. It complies with the Consumer Credit Regulations (CCR), which impose caps on the total cost of credit, protecting consumers from excessive charges. The company has not disclosed any major regulatory penalties as of 2025, with routine BNM inspections reportedly completed without material findings. Consumer protection is further ensured through mandatory pre-contractual disclosures, a cooling-off period, hardship programs, and a dedicated complaint channel for customers.

Customer Reviews, Market Position, and Practical Advice

AEON Credit's market position in Malaysia is robust; it ranks among the top three non-bank financiers in the personal financing segment, holding approximately a 12% share of receivables. Its differentiation lies in its extensive retail presence, diverse product range catering to various income brackets, and a growing digital footprint.

Comparison with Competitors in Malaysia

While AEON Credit offers broad accessibility, it operates alongside several strong competitors, each with unique differentiators:

• Maybank FCapital: Benefits from strong bank guarantor support, appealing to those who prefer bank-backed financing.
• Hong Leong MSIG Finance: Often integrates insurance-bundled financing, adding value for customers seeking combined protection.
• CIMB Islamic Finance: Provides full Islamic banking integration, which might be preferred by customers looking for a comprehensive Shariah-compliant financial ecosystem.

AEON Credit's strategic partnerships with AEON Retail outlets and its ongoing joint venture with AEON Bank for digital banking initiatives underscore its commitment to growth and expanding its reach, particularly in the digital space. Despite initial expected losses from the digital bank venture until approximately 2029, this move is considered vital for its long-term strategic digital presence.

Customer Reviews and Service Quality

Beyond app ratings, broader customer sentiment, as observed on platforms like Trustpilot/myApp, averages around 3.8 stars. Customers frequently praise the speed of approval processes, especially through the mobile application. However, common complaints often revolve around the clarity of processing fee disclosures and the communication of late payment penalties. AEON Credit endeavors to address these by offering a 24/7 call center with an average hold time of less than two minutes, along with in-app chat and WhatsApp support.

Practical Advice for Potential Borrowers

For Malaysian individuals considering AEON Credit Service M Berhad for their financing needs, here is some practical advice:

• Understand the Total Cost: While interest rates are important, always factor in all fees, including processing fees, administrative charges, and potential late payment penalties. For example, personal financing includes processing fees of RM 100-RM 150, which adds to the initial cost.
• Assess Your Needs: Clearly define the purpose and amount needed for your loan. AEON Credit offers diverse products; choose the one that best fits your requirement, whether it is an unsecured personal loan or an asset-backed hire-purchase.
• Check Eligibility: Ensure you meet the income and employment tenure requirements. AEON Credit targets M30-M40 segments, so salaried individuals and self-employed persons with stable income are typically favored.
• Review Terms and Conditions: Pay close attention to the loan tenure and the overall repayment schedule. Longer tenures might mean lower monthly payments but potentially higher total interest paid.
• Utilize the Mobile App: The AEON Wallet Malaysia app is highly rated for convenience. Use it for applying, tracking your loan status, and managing repayments. Familiarize yourself with its features before applying.
• Be Aware of Collateral: For auto and motorcycle financing, remember that your vehicle serves as collateral. Understand the implications of this, especially regarding ownership and default scenarios.
• Compare with Competitors: While AEON Credit is a strong contender, comparing its offerings with other financial institutions like Maybank FCapital or CIMB Islamic Finance can help you find the most suitable terms and rates for your specific situation.
• Communicate Promptly: If you anticipate difficulties in repayment, reach out to AEON Credit's customer service early. They offer hardship programs and dedicated complaint channels that can provide assistance.

By carefully evaluating these points, potential borrowers can make informed decisions when engaging with AEON Credit Service (M) Berhad, ensuring a financing solution that aligns with their financial health and objectives in Malaysia.