As an expat trying to settle down in a foreign land, the two most important things you need to consider are owning a car and investing in a house. While the latter involves quite a bit of money and time, the former is relatively simpler to achieve. Read on to know more about how you can get a car loan in Malaysia if you’re a foreigner.
Banks Offering Car Loans for Expats In Malaysia
- Maybank: This bank offers car financing for new, old and reconditioned motor vehicles. Individuals aged 18 years and above, expats, partnership firms, sole proprietorships, public and private limited companies can apply for this facility. Foreigners need a local guarantor while applying for the hire purchase facility. The loan period can go up to 9 years and the financing margin can go up to 90%. Here’s a table showing the terms of financing:
|Vehicle Type||Financing Margin||Repayment Period|
|New, SUV, 4WD, and MPV||90%||108 months|
|Second-hand, SUV, 4WD, and MPV||85%||108 months|
|Unregistered imported||90%||108 months|
Features and Benefits
- High financing margin
- Easy repayment period
- Easy monthly instalments
- Get loan approved for both used and new cars
- Easy renewal of motor insurance and road tax
- Must be 18 years of age and above.
- Must be employed.
How Do You Apply for the Car Loan?
Fill out the application form that’s available on the official website of the bank. Submit the same along with all the necessary documents.
- Copy of valid passport
- Copy of driver’s license
- Work permit
- Latest 3 months’ salary slip
- Latest bank statements
- Letter from employer
- Employees Provident Fund
Once you have the above documents, you can now:
- Apply for road tax
- Register your car with the Road Transport Department
- Apply for car insurance
As a foreigner, it is important that you analyse your finances before deciding on a loan. Finding the right car loan involves comparing multiple options and choosing one that matches your needs.
Q. What are the benefits of taking a car loan from Maybank?
A. The following are the benefits:
- Fast approval.
- Competitive term charges.
- Easy repayment options like ATMs, branches, standing instructions, and online payments.
- Foreigners and Malaysians can apply.
Q. Under what circumstances can a repossession happen?
A. Repossession occurs under the following circumstances:
- Two consecutive defaults of the monthly payment.
- Failure to pay final instalment.
- Four consecutive defaults of monthly payment by kin if the hirer is dead.
Q. What happens if I have defaulted two successive instalments?
A. Most banks in Malaysia gives 21 days’ Notice of Intention to Repossess to you and your guarantor by post. This will be followed by a second notice from the bank within 14 days. Legal action may be taken against you if you do not respond to the reminder notices. You will have to bear the legal costs as well.
Q. What are the costs that I should keep in mind before buying a car in Malaysia?
A. You’ll need to remember the following costs:
- Road tax
- Vehicle insurance
- Maintenance cost
- Petrol expenses
- Parking & tolls
Q. How can I claim my car insurance?
A. Obtain the claim form from the bank branch or the customer service centre. Provide all the necessary details, such as your policy information, how the accident occurred, etc.
It is important that you notify your insurance company as soon as possible. This will help the company to resolve your claim quicker.