Bank Islam Car Loan

About Bank Islam

With over 35 years of service, Bank Islam is a leading and pioneering Islamic banking in Malaysia that offers a variety of financial solutions to its prospective customer and the stakeholder, their people, investors, and communities.

Not just that, due to the spike of COVID-19 in Malaysia, Bank Islam introduced and subsequently enhanced their mobile banking application called GO by Bank Islam, together with the digital wallet and payment services to give accessibility and free hassle to the customer to make any payment or services during the COVID-19.

What is a car loan?

When you buy a car, one of your expenses is the car loan cost. A car loan is a type of loan that lets you borrow money to pay for a car. You can use a car loan to buy a new or used car. The terms of a car loan typically depend on the age and value of the car and your credit history.

What type of car loan does Bank Islam offer?

Bank Islam offers 3 types of car loans, which are:

• Vehicle Financing-i
• Vehicle Financing-i GradONE
• Superbike Financing-i

What are the eligibility criteria to apply for Bank Islam car loans?

• Between 18 to 60 years old
• Fixed income earner
• Graduates with at least a Diploma from accredited universities/ higher learning institutions (Vehicle Financing-i GradONE)
• A permanent/ contract employee of:
  • Government and semi-government sector
  • Government-link companies
  • Selected public listed companies*
  • Selected private limited companies*

*As categorised under package companies listed by Bank Islam.

What are the benefits of Bank Islam car loans?

• Shariah-compliant auto financing is based on Murabahah
• Rapid approval thanks to a simplified application process
• High margin of financing of up to 70%, 90%, and 100%*
• Most flexible repayment period of 7 years and 9 years*
• Ibra’ (rebate) on full repayment of the loan before it matures
• Competitive rates and selling price that is fixed and known

*Based on the selected car loan.

Who should I contact for further information about Bank Islam car loans?

• Bank Islam Contact Centre at +60326900900 OR
• Email contactcenter@bankislam.com.my OR
• Visit the nearest Bank Islam branches

What are the fees included in Bank Islam car loans?

• Stamp duty

  Without guarantor: RM20 | With guarantor: RM30

• Late penalty fee

  1% of the outstanding amount

How do I make my monthly payments for Bank Islam car loans?

You can make your monthly payments in the most convenient ways possible by using various channel methods such as Internet banking at https://www.bankislam.biz/ or visiting the nearest Bank Islam branch.

Do I need any insurance coverage for Bank Islam car loans?

You must obtain comprehensive motor Takaful or insurance coverage on the financed vehicle for the financing duration.

What are the common terms of car loan?

• “Auto equity loan”This form of loan, also known as a title loan, uses the equity you have in your vehicle in return for your title. You get a cash loan, and the lender returns your car title once you’ve paid it back.
• “Balloon payment”A balloon payment reduces monthly payments on a vehicle loan, but it necessitates a hefty amount after the term.
• “Buydown”When buying a new or used automobile, the buyer may be given the option of lowering their car loan’s interest rate.
• “Cashback refi”A form of refinance loan that allows you to utilise the equity in your automobile to get cash while refinancing it.
• “Credit”A term that refers to your credit history and can help determine whether you will be able to repay a car loan.
• “Interest rate”The interest rate is the percentage that the bank will charge on top of the principal amount or the amount that must be repaid.
• “Down payment”The upfront payment for a car covering a portion of the cost. It is typically 10% of the total cost of a new car and 20% of the total cost of a used car.
• “Margin of Finance (MOF)”The loan amount granted by the financial institution is expressed as a percentage of the property’s value pledged to secure the loan.
• “Loan period”The total number of months or years required to pay off your loan.
• “Guarantor”Someone who is legally obligated to repay your loan if you cannot do so.
• “Instalment”The monthly payment you must pay to the bank to pay off your loan.
• “Default”The borrower violates the loan agreement, most commonly by failing to make the agreed-upon monthly payments.