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Hong Leong Islamic Auto Financing-i

The Hong Leong Islamic Auto financing-i is a type of Islamic vehicle financing available to Muslims and non-Muslims alike.

Features & Benefits

  • Hong Leong Auto Financing-i is a form of Islamic banking based on the Shariah contract of Al Ijarah Thumma Al Bai (AITAB). AITAB indicates to a leasing which ends with the sale of the asset.
  • The Bank will lease the chosen asset for an agreed period and rental. After the payment of the final instalment that comprises RM1 of the sale price, the ownership will be handed over to the Customer.
  • The bank provides a speedy approval to a customer if he/she makes the application with all necessary documents.
  • The auto financing offers financial flexibility with its competitive rates.
  • The financing scheme comes with easy repayment options. It includes, online banking, Interbank GIRO (MEPS IBG), Automated Teller Machine (ATM), Cash Deposit Machine (CDM), Cheque Deposit Machine (CDM), along with Hong Leong Bank Branches or the Standing Instruction facility.
  • Takaful coverage services and tax renewal services are offered by the bank for a customer’s benefit.
  • Customers will be offered a rebate if they choose to settle the financing amount earlier than the estimated tenure period.
  • The margin of finance provided to a customer is up to 9 years (108 months). For a used vehicle (passenger vehicle) that is aged up to 5 years, the maximum tenure provided is up to 84 months.

Interest/Profit Rates

The profit rates in this scheme, are decided by the bank and they are determined by the factors such as Base Rate, Base Lending Rate, amount of financing approved and the financing tenure chosen.

Eligibility Criteria

  • Nationality Criterion: Malaysian citizen
  • Age Criteria:
    • Minimum Age: 21 years and above
    • Maximum Age: 70 years
  • The applicant should apply as a sole proprietor or with partnerships
  • Private Limited Company and Public Listed Companies can also apply for the Hong Leong Islamic Auto Financing-i scheme.

Documents Required

An applicant needs to submit the documents listed below at the time of applying for the Hong Leong Islamic Financing-i scheme:

    For Individual Applicants:
    • Working Individuals:
      • NRIC or Identity card
      • Driving license
      • Latest salary slips (for 3 months)
      • Latest BE Form (along with the tax payment receipt)
      • Latest EPF statement with contribution details of minimum 6 months
      • Latest bank statements or savings booklet (for 3 months)
      • Letter of Employment by the employer

    • Self-employed Individuals:
      • Identity card or NRIC
      • Driving license
      • Latest bank statements or savings passbook (for 6 months)
      • Latest Form B (along with the tax payment receipt)
      • Form D and Business Registration Form (if applicable)

    For a Business Application:

    • Private Limited or Public Listed Companies:
      • Company Registration Certificate or Certificate of Incorporation
      • Forms 24 and 49
      • Memorandum and Articles of Association (M and A)
      • Latest business bank statements (for 6 months)
      • Director NRIC

    • For Sole Proprietor/Partnership
      • Business Registration and Form D
      • Latest business bank statements (for 6 months)
      • Business proprietor or partner’s NRIC

    Other Documents:

    • Customers purchasing a new vehicle need to provide the purchase order
    • Customers purchasing a used vehicle need to provide the registration card.

Fees & Charges

Hong Leong Islamic Auto Financing-i Fees & Charges
Stamp Duty Charges RM10 for each agreement
Administration Fee RM35
E-Ownership Claim Charges RM3
Incidental Charges (applicable for used car) RM350
Late Payment Charges (Ta’widh) 1% p.a. on the overdue monthly instalment
Early Settlement Fee No fee charged

(All fees and charges are inclusive of 6% Goods and Service Tax charges, wherever applicable)

How To Apply

  • Offline Application: Any anticipating customer can go to the nearest Hong Leong bank and fill the application form with details such as required financing amount, contact details etc. After that, he/she can submit the form with all required documents to the customer care executives of the bank. The bank representatives will then get back to the candidate with the status of the application.
  • Online Application: Applicants also have access to an easy online application form on the official website of the bank. Applicants must fill in details regarding the financing amount, desired tenure, their employment status and the type of vehicle he/she wants etc. The duly filled form must be submitted along with the required documents for the application to be processed.

Contact Number

Borrowers looking to contact Hong Leong Islamic Bank for any query regarding the application process, repayments, fees and charges or profit rates involved in the financing scheme, can do so on the following hotline: 03-79523388. To raise any complaints, borrowers can reach out to Hong Leong on 03-21808888.

FAQ's

Q. I want to purchase a used passenger vehicle. It is around 4 years old. Can I obtain the financing for the same? If yes, what is the tenure that I am eligible for?

A. Yes, you can obtain the Hong Leong Islamic Auto Financing-i for any used vehicle of up to 5 years. For repayment, you can get a tenure of up to 84 months i.e. up to 7 years.

Q. I desire to apply for financing for a commercial van. I want to know the margin of finance and possible tenure that I can receive.

A. If you are buying a new commercial van, you are eligible for up to 90% margin of finance and a tenure of up to 84 months. Whereas, if you are purchasing a used vehicle, up to 3 years, the margin of finance that you are eligible for is up to 70% with a tenure of up to 36 months.

Q. Do I need to take any takaful coverage while obtaining financing for my car?

A. The bank requires you to cover your vehicle under a comprehensive takaful coverage for the first year. Likewise, you need to keep the vehicle covered until the validity of the auto financing period.

Q. How does the bank calculate monthly instalments for Islamic auto financing scheme?

A. The monthly instalment that a customer needs to pay is calculated by the following formula:

M = P + (P x I x T) / T x 12

Where,

M= Monthly instalment

P= Amount financed

I= Profit rate

T= Original financing period expressed in years

Q. How much rebate I will get if I settle the financing amount before its maturity?

A. The rebates given to a customer is calculated with the help of the following formula:

R = TC x n x (n+1) / N x (N+1)

Where,

R= Profit rebate

n= Remaining leasing period expressed in months

N= Original leasing period expressed in months

TC= Total amount profit payable over the leasing period

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