When it comes to buying a new car, the very first question on anyone’s mind is which car should be bought? Once that question is answered, the next big question is about the financing the car. To answer that there are a lot of smaller questions that need answer. If you are planning to pay for the car in a lump sum, and if you already have the money in your account, then you are all set to go but if you don’t you start wondering about finance options. Though there are a lot of car loans available in Malaysia, each person may have a separate set of requirements they want the loans to fulfil. Some like higher loan amount, while other want longer repayment periods, etc. There are also those who are actually looking for car loans with low interest rates, so if you are one of them, here are some of the best low interest rate car loans in Malaysia.
Low interest rate car loans in Malaysia
BSN Hire Purchase
The loan works on the principle of hire purchase where you use the car but it is hypothecated to the bank till such time as the loans are paid back. The hire purchase car loan offered by Bank Simpanan Nasional offers up to 90% of the money needed for the purchase of the car with a minimum loan amount of RM 25,000. It also offers a minimum repayment period of 3 years, easy documentation, easy repayment options and competitive interest rates. The interest rates offered by the bank range from 2.8% to 3.3% per annum for national cars and from 2.15% to 2.75% for non-national cars.
Affinbank Conventional Hire Purchase
The Conventional Hire Purchase car loan made available by Affinbank are available to both salaried and self-employed individuals who are above the age of 18 years. This loan is also made available to companies looking to buy cars for themselves. The documents required for this loan are a copy of an identity proof, salary vouchers for the last 3 to 6 months along with EA Forms for proof of tax payments. These may differ slightly for self-employed individuals as they may be required to submit the latest financial statements along with other supporting documents.
Affin Islamic Hire Purchase-i
The Affin Islamic Hire Purchase-I is a car loan that complies with the rules of Islamic banking and works on the principals of car ijarah. Under this loan you can inform the bank about the car you’d like to own and the bank purchases and provides it to you to use. The amount of finance the bank will extend will be about 90% of the cost of the car and while you use it, you have to pay a rental to the bank which is treated as an instalment. At the end of the term and on completion of the payments, the bank will transfer the car in your name.
Al-Rajhi Automobile Financing-i
This is a car loan that offers a loan amount of 90% of the cost of the car and also offers a repayment period that can extend up to 9 years. This loan is also based on the rules of Islamic banking following the concept of Bai' Bithaman Ajil. It allows for prepayments to be made without having to pay any penalties for it and is open to those who are above the age of 21 years and are earning RM 3,500 or more. Even the documentation for this loan is very simple and requires only identity cards, payslips and a quotation for the purchase of the car.
Bank Islam GradHitz Vehicle Financing-i
The GradHitz Vehicle Financing-I offers customers the chance to receive up to 100% of the finance for the on-road price of their cars. It also offers repayment periods of up to 9 years (108 months), features fast approval times and boasts of no hidden charges. This loan is extended to those who are at least 20 years to 30 years old and have a fixed income. The bank can also take into consideration the credit history of the applicant before approving the loan.
When looking for a car loan, a thorough study of the interest rates being offered by various banks is always a good idea since they may vary and some banks may offer better rates than the other. It is also worth noting that the interest rates are subject to change thus making it advisable to check the latest interest rates before applying for the loan.