Al Rajhi Bank was founded in 1957 at Saudi Arabia and gradually became one of the greatest Islamic banking institutions in the world with a staggering paid up capital of $4.3 billion and an assets base worth $76.8 billion. Al Rajhi operates strictly on the basis of Islamic banking principles, in compliance with Sharia laws, all the while meeting the contemporary demands of finance in Malaysia. The Al Rajhi banking group has one of the largest customer-bases. It services them through a variety of products and services. One among them is car financing which is offered at some of the lowest interest rates in the market.
You’re probably eligible for an Al-Rajhi Bank Car Loan if you are
At least 21 years old
Less than 70 years old
Salaried or self-employed
with regular income
Earn more than the minimum
Your Al-Rajhi Bank Car Loan amount eligibility is based on these factors
Loan capped @
Up to 90% of the ex-showroom price
Installments of other loans lower
Increase your eligible Al-Rajhi Bank Car Loan amount by these steps
Pay off your credit card bills
Choose longer tenure loan up to 9 years
Documentation needed to apply for an Al-Rajhi Bank Car Loan
- 1. Photocopy of NRIC
- 2. Passport and valid driving license
- 3. Latest 6 months savings/current account statements
- 4. Documentation for Individual Employed/ Salaried:
- Latest 3 months pay slips/ salary vouchers
- Latest EPF Statement
- Latest 3 months payslips/salary vouchers (without overtime) or Latest 6 months payslips/salary vouchers (with overtime)
- Latest 6 months commission statements(for commission earners)
- Latest EA Form or Borang B supported by tax payment receipt or e-Filing supported by acknowledgement
- 5. Documentation for Sole Proprietor/ Partnership:
- Certificate of Business Registration or partnership agreement or Certificate of Practice for professional or business permits/trading license
- Latest 6 months business account statements (Sole Proprietorship/ Partnership)
- Contracts in hand or sales vouchers or unencumbered deposit certificates/investment certificates/ unit trust
- Latest Profit & Loss account or Management account.
- 6. Documentation for Private/ Public Limited Company:
- Certified true copies of Certificate of Incorporation,Memorandum and Articles of Association
- Latest Forms 24 & 49 and brief business profile/write-up or latest annual returns
- Latest audited accounts or management accounts or Contracts in hand
Al-Rajhi Bank Car Loan Interest RatesUpdated on 27 Oct 2016
|Margin of Finance||Up to 90%|
|Guarantor Requirement||No Info|
Why Choose Al Rajhi Car Financing?
Car loans offered by Al Rajhi are one of the best car financing options in Malaysia owing to its reasonable interest rates, designed to suit the financial status and requirements of customers. In many cases, car loans have been approved within 2 days. Another great feature of Al Rajhi bank car loans is the amount of financing one can apply for; it is unlimited and is extended for a period up to 60 months, since the bank follows the Ijara concept of repayment for car leasing. As an added benefit, the bank offers both car installment and car lease options to eligible individuals, if his/her salary is transferred directly to an account held with Al Rajhi bank. Otherwise individuals are offered only the car lease option.
What are the eligibility criteria to avail an Al Rajhi car loan?
Any individual who is 21 years or above and draws a minimum salary of RM 3,500 is eligible to apply for an Al Rajhi car financing plan.
As stated, individuals will be eligible to apply for either the car installment or car lease options depending on where his/her salary gets transferred.
- Your Salary Transfers into Al Rajhi Bank: In this case, the loan can be repaid either through installments or on a lease basis.
- Your Salary Transfers into another bank: In this case, the loan can be repaid on a lease-basis only.
What are the kinds of cars that can be financed through Al Rajhi Bank car loans?
New, as well as used cars, national or foreign brands, can be financed through this car loan scheme.
What are the documents required to apply for an Al Rajhi Bank car loan?
Al Rajhi Bank car loans come with easy documentation and quick approvals. Documents to be submitted vary according to the repayment option i.e. car installments, car lease with salary transfer and car lease without salary transfer.
Address and identity proofs along with proof of income and updated bank statements are required for all loan applications. These documents can be submitted along with the car price quotation provided by the dealer. Complete documents along with duly filled application forms can be submitted at any of the Al Rajhi Bank branches.
What is the margin of financing offered under Al Rajhi Bank car loan?
Currently, Al Rajhi is offering 90% margin of finance (10% down payment) when you opt for the Car Lease without Salary Transfer option on your chosen car. If you are capable of paying more at the time of down payment and trim down the overall loan sum, you can contact the bank officials at your nearest Al Rajhi Bank branch. The other Al Rajhi car loan holders do not need to make down payments.
Are there any late payment charges on an Al Rajhi Bank car loan?
If you fail to pay your monthly installments on time, you will be penalized and charged 1% p.a. compensation fee (in arrears).
Can the car be repossessed in case of default under the car loan installment option?
If you have missed two successive monthly payments of your car loan installments, the bank has the right to repossess the car after issuing a warning notice. It is advisable to consult Al Rajhi Bank officials in case of difficulties in making payments.
Are rebates offered on early settlements?
If you wish to repay the entire loan amount earlier than your loan holding period, you may contact your Al Rajhi loan officer to find if you are eligible for any rebates for early settlement.
How to calculate Al-Rajhi Bank Car loan installment in 2016?
If you wish to apply for Al-Rahji Bank’s car loan in Malaysia, Bbbzaar.my has an online car loan installment calculator that can help you. By filling in details such as required amount to be borrowed, tenure of repayment and profit rate, the calculator gives you the exact instalment you have to pay on your car loan each month. What’s more, this also comes with a schedule of repayment that can inform you about paid and unpaid portions of the loan. This makes you aware about the interest rate on car loan and the instalment you need to pay each month.
Other Products offered by Al-Rajhi Bank:
Apart from offering Car Loan,Al-Rajhi Bank offers other products and services which include:
Al-Rajhi Bank Car Loan FAQ’s
What is the maximum tenure of car loan repayment with Al-Rajhi Bank?
The maximum car loan repayment tenure offered by Al-Rajhi Bank is 9 years.
How much car finance am I eligible to take under Al-Rajhi Bank Car Loan schemes?
Al-Rajhi Bank offers finance up to 90% of your car value based on your eligibility.
What is Automobile Financing- i Calculator?
This is car loan calculator offered by the bank which helps you take a well-thought decision. The calculator also helps you calculate your monthly EMIs for Al-Rajhi Bank Car Loan so that you can better plan your budget.
What are the car loan schemes offered by Al-Rajhi Bank?
Al-Rajhi Bank offers the following car loan schemes:
Al-Rajhi Automobile Financing-i.
Al Rajhi Superbike Financing-i.
How does Al-Rajhi Automobile Financing-i work?
The scheme offers car loan for a tenure of 9 years. The borrower can get finance up to 90%. Interest rates charged by this scheme ranges between 2.75% to 3.6%. These rates are applicable for both new and used, local and foreign cars.
If I opt for an Al Rajhi Superbike Financing-i scheme, how many years do I get to repay the loan?
Al Rajhi Bank would offer you a term of 7 years within which you need to repay your Al Rajhi Superbike Financing-i car loan.
What if I purchase a used car? Will Al Rajhi Bank provide me finance for that?
Yes, the bank provides finance for purchasing used cars as well.
What type of interest rate is charged on Al Rajhi Superbike Financing-i?
Al Rajhi bank charges flat interest rates on Al Rajhi Superbike Financing-i.
What is the minimum age required to be eligible for an Al Rajhi Bank Car Loan?
Your minimum age needs to be 21 years to be eligible for an Al Rajhi Bank Car Loan.
What is the maximum age required for availing an Al Rajhi Bank Car Loan?
The borrower’s age should not be more than 70 years to avail an Al Rajhi Bank Car Loan.
News About AlRajhi Bank Car Loan
New Chairman for Al Rajhi Bank Malaysia Appointed
Datuk Dr Nik Norzrul Thani Nik Hassan Thani has been appointed as the chairman of Al Rajhi Bank Malaysia in a recent ceremony that occurred on 13th July, 2016. Starting with effect from that date, Datuk Dr Nik Norzrul Thani Nik Hassan Thani is the active chairman of the bank.
Datuk Dr Nik Norzrul Thani Nik Hassan Thani was earlier a board member of Al Rajhi Bank Malaysia and has been on the board since 2006. The bank is confident in his vast experience that ranges from providing expertise on legal matters to offering insights on Islamic finance. Datuk Dr Nik Norzrul Thani Nik Hassan Thani has over 35 years of experience in the banking industry.
25th July 2016