Hong Leong Bank Car Loan

    Coming with a high margin of financing and flexible repayment tenures, the Hong Leong Car Loan provides funds at a competitive rate for the purchase of both, new as well as old cars.

    Hong Leong Bank Car Loan Interest RatesUpdated on 24 Mar 2019

    Interest/Profit Rates

    The interest rates associated with Hong Leong Bank Car Loan are given below:

    Margin of Finance Tenure Fixed Rate Financing Rate Floating Rate Financing Rate
    Up to 90% Up to 9 years Flat rate up to 10% p.a. (BLR + Spread)% p.a. with a maximum of 17%.

    Note: BLR = Base Lending Rate

    Types of Car Loans

    The following is the list of loan plans available with Hong Leong Bank Car Loan:

    • Fixed Rate Financing: The financing is based on fixed interest rates and even with the fluctuations in the market, the interest rates will not exceed more than 10% p.a. A customer will have to pay fixed monthly instalments. The late payment charges for monthly instalments are also definite at 8% p.a. Moreover, no penalty fee is charged on early settlement of the loan made by a customer. Instead, the bank will offer interest rebate to the customer on doing so.
    • Variable Rate Financing: This package is based on the Base Lending Rate (BLR) and the interest rate will not exceed 17% p.a. On each BLR revision or fluctuation, the interest rate will change. The late payment charges are minimum 2% while no penalty fee is charged for early settlement of the loan. On making an early settlement, the customer will receive rebates from the bank.

    Eligibility Criteria

    The eligibility criteria for Hong Leong Bank Car Loan are listed below:

    • The individual customers should be at least 21 years old and should not be older than 70 years at the time of application.
    • The sole proprietorships, public listed companies, private limited companies, and partnerships can also apply for this loan.

    Documents Required

      For salaried-earners: The salaried-earners need to present the following documents at the time of application of the Hong Leong Bank Car Loan:
      • NRIC
      • Driving License
      • The employment letter
      • Salary slips for last 3 months
      • Bank statement or saving passbook for last 3 months
      • The latest EPF statement with a minimum of 6 months’ contribution
      • Latest Borang BE with a tax payment receipt
      For self-employed individuals:
      • NRIC
      • Driving License
      • Business Registration form and Form D
      • Bank statements or savings passbook for last 6 months
      • Latest Borang B with a tax payment receipt
      For sole proprietors & partnerships:
      • Business proprietor’s or the partner’s NRIC
      • Business bank statements for last 6 months
      • Business registration form and form D
      For private limited & public listed companies:
      • Director’s NRIC
      • Form 24 & 49
      • Business bank statements for last 6 months
      • Certificate of incorporation
      • Memorandum and Articles of Association (M&A)
      Other documents:
      • For a new vehicle: Purchase order
      • For a used vehicle: Registration card

    Fees & Charges

    The fees and charges associated with Hong Leong Bank Car Loan are mentioned in the table below:

    Monthly instalment (Fixed rate financing) The monthly instalment is calculated using the formula below: M = [P+(P x R x t)]/T Where M = Monthly instalment; P = Total approved loan amount; R = Interest rate; t = tenure in months; T = Tenure in years.
    Monthly instalment (Variable rate financing) The monthly instalment is calculated using the formula below: M = P x [J/{1-(1+J)-t}] Where J = (Interest rate/100)/12
    Late payment charges (Fixed rate financing) 8% p.a. on overdue instalment.
    Late payment charges (Variable rate financing) 2% p.a. above the prevailing rate of the term charges.
    Early settlement fee No penalty charged.
    Stamp Duty RM10 per agreement.
    Administrative Fee An administrative fee of RM35 will be charged.
    Incidental charges (for used cars) RM350.

    How To Apply

    • Offline Application: The applicants can apply for Hong Leong Bank Car Loan at the nearest Hong Leong Bank’s branch. The application process can also be approached telephonically by reaching out to the bank through its helpline numbers.
    • Online Application: One can also apply for Hong Leong Bank Car loan on the official Hong Leong Bank’s website. The application form available online needs to be filled with the required details and needs to be submitted along with all the necessary documents required for the Hong Leong Car Loan approval process.

    Features & Benefits:

    • The financing plan provides funds for the purchase of new as well as second hand and reconditioned vehicles.
    • The loan scheme provides up to 90% margin of financing to the individuals.
    • The repayment tenure available with this loan scheme is extendable up to 9 years.
    • The loan facility covers the motor insurance and road tax renewal services.
    • The repayment for the facility can be made via easy online payment modes like placing standing instructions on CASA Auto Debit, interbank GIRO, Hong Leong Connect, CDMs and ATMs, and at the Hong Leong branches.


    Q. Can multiple applicants apply for a loan through this loan facility?

    A. No. There can be only one borrower per loan as per the Hire Purchase Act.

    Q. Does the Hong Leong Bank Car Loan process need a guarantor?

    A. If it is prescribed by the bank under specific circumstances, the process may require you to bring a guarantor for the application process.

    Q. How do I get the update on my loan process?

    A. Once you submit the documents and fill up the application form, the documents will be verified. Once the loan is approved, the bank will contact you.

    Q. Once the loan is approved, for how long is it available for me to take a decision if I want it or not?

    A. Once your loan is approved, you are given a window of 30 days to take the loan. If you do not contact the bank within 30 days, the bank has a right to withdraw the loan approval without giving you a prior notice.

    Q. What if I decide to settle the entire loan amount during the loan period? Will I be charged with an early settlement/termination fee?

    A. You can opt to close the loan by settling the entire loan amount at any time during the tenure. There is no termination fee for such cases.

    Q. Is it beneficial to settle the loan before it matures?

    A. If you opt to settle the loan amount before the maturity of the loan, you can earn a rebate on the term charges with variable rate financing.

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