The Hong Leong Bank offers an Automobile Loan to those who want to buy a car irrespective of its brand, make or model. The Hong Leong Bank Car Loan is a very popular financial product in Malaysia. The interest rate on these loans is flat and is decided by the bank while applying for the loan. It is a great option for anyone who is living in Malaysia and has been dreaming about buying a car, that too without any worries about hefty amount of credit.
You’re probably eligible for an Hong Leong 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 Hong Leong 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 Hong Leong 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 Hong Leong Bank Car Loan
- 1. Photocopy of identity card (front & back) for applicant and guarantor(s).
- 2. Photocopy of Valid Driving License.
- 3. Photocopy of NRIC
- 4. Documentation for Salaried Employee:
- Latest 3 months pay slips/ salary vouchers
- Latest 3 months bank statements/savings passbook
- Latest Borang BE (supported with tax payment receipt)
- Latest EPF statement with at least 6 months contribution
- Letter of employment
- 5. Documentation for Self-Employee:
- Business Registration & Form D
- Latest 6 months bank statement account
- Latest Borang B (supported with tax payment receipt)
- 6. Documentation for Sole Proprietor / Partnership :
- Business Registration & Form D
- Latest 6 months business bank statements
- Latest audited account
- Business proprietor / partner(s) NRIC
- 7. Documentation for Private Limited / Public Listed :
- Certificate of Incorporation
- Form 24 & 49
- Memorandum and Articles of Association (M&A)
- Latest 6 months business bank statements
- Director NRIC
Hong Leong Bank Car Loan Interest RatesUpdated on 05 Dec 2016
|Margin of Finance||Up to 90%|
Hong Leong Auto Loans
The Hong Leong Auto Loans are a quick convenient way of securing additional financing for the purchase of a car. The rates offered are competitive and the finance margin is based on the age and type of car.
Features of Hong Leong Auto Loans:
- Finance margin offered is dependent on the age of the car and also the type. For passenger vehicles which are new, the loan margin goes up to 90% and the maximum tenure for such loans is 108 months.
- For passenger vehicles that are used and up to 5 years old, the loan margin goes up to 85% with a maximum tenure of 108 months. The used passenger vehicles between the ages of 6 to 10 years have a loan margin of 85% with a maximum tenure of 84 months.
- For New commercial vans, the loan margin goes up to 90% with a maximum tenure of 84 months whereas used commercial vans up to 3 years old have a loan margin of 70% with a maximum tenure of 36 months.
- For New commercial vehicles with a BDM up to 5,000 Kg, the loan margin goes up to 90% with a maximum tenure of 84 months whereas used commercial vehicles with BDM of up to 5,000 Kg that are up to 3 years old have a loan margin of 70% with a maximum tenure of 36 months.
- Early settlement of the loan offers an interest rebate to the borrower on the remaining period of the loan.
Fees and Charges of Hong Leong Auto Loans:
- The Stamp Duties to be paid is RM 10 per agreement.
- Administrative fees are RM 35.
- Fee for E-ownership Claim is RM 3.
- Incidental charges applicable for used cars is RM 350.
- Late payment charge for loans with variable rate of financing is 2% above the prevailing rate charges.
- Late payment charge for loans with fixed rate of financing is 8% per annum.
- Any Malaysian National who is above the age of 21 years can apply for the loan.
- The maximum age of the applicant cannot exceed 70 years of age.
- The loan can be availed by salaried as well as self-employed applicants.
- The loan can be availed by companies that are Public Listed or Private Limited.
- If the applicant is employed, the documents needed are as follows:
- A copy of the NRIC (both sides).
- A copy of the valid driving license.
- The latest salary slips dating back at least 3 months.
- The applicant has to provide the latest Borang BE with a copy of the fee payment receipt.
- The applicant must provide a copy of their latest EPF statement reflecting contributions for the past six months.
- The applicant must submit the latest bank statement or copy of the savings account passbook dating back at least 3 months.
- The applicant must submit a letter of employment.
- If the applicant is self-employed, the documents needed are as follows:
- A copy of both sides of the NRIC and a copy of the valid driving license of the applicant.
- The copy of the business registration certificate along with Form D.
- The copy of the latest bank statement or savings account passbook dating back at least 6 months.
- A copy of the latest Borang B form with a copy of the fee payment receipt.
- If the applicant is a business applicant that is a sole proprietor or partnership, the documents needed are as follows.
- A copy of the business registration along with the Form D.
- The copy of both sides of the NRIC of the sole proprietor or one of the partners.
- The copy of the latest bank statements of the business dating back at least six months.
- If the applicant is a business applicant that is a Private Limited or Public listed Company, the documents needed are as follows.
- The copy of both sides of the business director’s NRIC.
- The copy of the latest bank statements of the business dating back at least 6 months.
- The applicant must provide the memorandum and Articles of Associations along with certificate of incorporation and Form 24 and 49.
Why to choose the Hong Leong Bank Car Loan?
The Hong Leong Bank offers an Auto Loan for the financing of new as well as used or second hand cars. The maximum tenure of the loan is up to 9 years or 108 months which is the maximum loan tenure available for any car loan in the industry. Moreover, the bank also provides a motor insurance coverage and renewal of road tax is absolutely free with the loan. This loan ensures that the customer walks home with a car of his/her choice at the appropriate funding rate. With its long tenure, it is also an ideal option for people who have just started out on a job and want to buy their first car.
What are the Hong Leong Car Loan Packages?
The bank provides different loan options for the financing of passenger & commercial vehicles as below-
Passenger Vehicle Loan: This loan is for the individuals who want to buy a vehicle for personal use. The margin of finance available on these loans is 90% for the new vehicles with the loan tenure of up to 108 months. On the other hand, the finance margin on used/old vehicles is up to 85% and the loan tenure is up to 84 months and 108 months for the vehicles which are upto 5 years old and 6-10 years old respectively.
Commercial Van Loan: This is an ideal funding option for individuals who wish to buy a vehicle for commercial or business purposes. The margin of finance for the purchase of a new commercial van is up to 90% with the loan duration of upto 84 months while for a vehicle which is upto 3 years old, the finance margin is 70% with the duration of the loan upto 36 months.
Who can apply for these Auto Loans?
Any individual aged 21 years old or above and below 70 years can apply for this car loan. The individual must have a minimum annual income of RM 24000 to pass the criteria. Hong Leong Bank offers these loans to all the Malaysian residents irrespective of their race, religion or nationality i.e. even a non-Malaysian can apply.
How to apply for the Car Loan?
The individuals applying for the Car Loan need to complete the following steps:
- Since the loan application can be made online, the applicants are required to provide their valid contact details to set up their profile in the applicant database of the bank. All the personal details are to be mentioned correctly and carefully.
- Provide the information of the car selected to purchase such as model, color etc along with the amount of the loan required and the chosen loan tenure.
- Give the status of the employment; whether salaried or self employed. Details of company, business owned, income earned, beginning date of employment/business and other terms are also required.
What are the payment options for Hong Leong Bank Car Loan?
The bank allows numerous methods for the easy payment of the monthly installments such as online banking, ATMs, cash deposits, cheque payments, Interbank GIRO and standing instruction to bank facilities at any branch of the Hong Leong Bank located nationwide.
Are there any Early Loan Settlement options?
Those who can afford to pay off the entire loan earlier than the due loan tenure can choose do to so and will be offered a rebate on the interest for the remaining tenure. But there is also a penalty of 2% on the overdue amount in case the individuals fail to pay the installments on the date. In cases of payment default for 2 consecutive months, the bank has the right to repossess the automobile.
How to calculate Hong Leong Car Loan installment in 2016?
Car loan applicants in Malaysia can easily figure out their interest rate and monthly installment by using the car loan installment calculator tool. The calculator is available on Bbazaar.my website where you can put in details like loan amount, interest rate and tenure of prepayment and can know what your monthly instalment will be if you take a car loan from Hong Leong. The tool also yield the repayment schedule which can show you where you stand in terms of repayment at any particular time during the car loan term.
Other Products offered by Hong Leong:
Apart from offering Car Loan, Hong Leong offers other products and services which include:
- Hong Leong Perosnal Loan
- Hong Leong Home Loan
- Hong Leong Credit Card
- Hong Leong Fixed Deposit
- Hong Leong Renovation Loan
Hong Leong Car Loan FAQ’s
Does Hong Leong Bank offer car loans for commercial vehicles?
Yes, the bank offers car loans for commercial vehicles.
Who can avail Hong Leong Car Loan?
The following categories of borrowers can avail this loan:
- Individual customers.
- Sole proprietorship and Partnerships firms.
- Private Limited and Public Listed Companies.
What is the minimum age required for availing a Hong Leong Bank Car Loan?
The minimum age required for availing this loan is 21 years.
What is the maximum age required for this loan?
The maximum age of an applicant should be 70 years.
Can a self-employed individual apply for this loan?
Yes, a self-employed individual can also apply for Hong Leong Bank Car Loans.
What are the key documents required for availing a Hong Leong Bank Car Loan?
The bank may ask a borrower to submit the following documents:
- Copy of NRIC.
- Driving License.
- Latest 3 months’ salary slips
- EPF Statement.
How much finance do I get when I take a car loan from Hong Leong Bank?
You can get finance up to 90% to purchase your chosen car.
What is the maximum loan repayment tenure offered by Hong Leong Bank?
The bank offers loan repayment tenure up to 108 months within which you need to repay your car loan. This is applicable for private vehicles only. For commercial vehicles, the maximum loan repayment tenure is 84 months.
What are the car loan schemes offered by Hong Leong Bank?
The bank offers two car loan schemes which include- Hong Leong Auto Loan and Hong Leong Hire Purchase Financing-i.
Can I opt for a flat interest rate on my car roan?
Yes, you can choose flat interest rate in your car loan.
Does the bank charge penalty for defaulting payment?
Yes, the bank charges a penalty fees of 2% for defaulting payment.
What are the interest rates charged by the bank on car loans?
The bank's interest rates on car loans range between 2.8% to 3.78%. However, these rates are subject to change.
Do I need to pay Stamp Duty fees?
Yes, you need to pay RM10 as Stamp Duty fees.
What are the car finance schemes offered by Hong Leong Bank?
The bank offers the following schemes –
- Hong Leong Auto Loan
- Hong Leong Hire Purchase Financing-i
News About Hong Leong Bank Car Loan
Hong Leong Partners with Intellect Design Arena To Ramp Up Digitisation
Hong Leong Bank Bhd is getting their digital platform ready for its wholesale banking business. Wholesale banking business in Hong Leong Bank contributes 30% to the group excluding its treasury segment.
Raja Teh Maimunah, MD and CEO of Hong Leong Islamic Bank Bhd (HLIB) said, “We will retain our existing customers, and at the same time acquire new ones. The digital platform is the way forward and we’re looking to provide more services to our customers to heighten consistency of transactions. We have a house target for that.”
She announced the plan to partner with Intellect Design Arena Ltd (Intellect) for the transition to digitalise the wholesale banking offerings.
HLBB would buy the Intellect iGTB suite that includes the digital omni-channel delivery platform and the other related applications in digital cash management, liquidity management, domestic and foreign payments, trade finance and supply chain financing.
Meanwhile, the bank also expressed intentions to roll out more digital products in 2015, to ramp up business with SMEs along with its digitisation plans of the group as a whole.
They are also encouraging users to conduct online transfers instead of the conventional cheque transfer which is not profitable for the financial institution in the long run.
21st August 2015