Al Rajhi Bank Car Loan

About Al Rajhi Bank

Al Rajhi Bank is a full-fledged Islamic bank based in Riyadh, Saudi Arabia, that provides financial services such as wholesale, retail, commercial banking, and investment. As a result, Al Rajhi Bank currently has 16 branches in Malaysia. This aligns with their values of integrity and transparency, passion for serving the customers, solution-oriented, modesty, innovativeness, meritocracy, and social concern.

What is a car loan?

Car loan is a popular choice for many people in Malaysia, and it is also known as hire purchase. With this type of financing, you can apply from selected banks to finance your vehicle- whether new or used (or even reconditioned). You will have up to 9 years with an option margin of 90%-100%, depending on which bank offers them!

What type of car loan does Al Rajhi Bank offer?

Al Rajhi Bank offers 2 types of car loans, which are:

  • Automobile Financing-i
  • Superbike Financing-i

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

  • 21 years old and above
  • Minimum monthly income of RM3,500

What are the benefits of Al Rajhi Bank car loans?

  • Based on the Islamic contract of Bai’ Bithaman Ajil, or deferred payment, this auto financing loan is Shariah-compliant
  • Rapid approval thanks to a simplified application process
  • High margin of financing of up to 90%
  • Most flexible repayment period of 9 years
  • Competitive terms from the Al Rajhi auto financing loan

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

  • Contact the Al Rajhi Customer Care Hotline at +60323326000 OR
  • Visit their official website OR
  • Visit the nearest Al Rajhi Bank branches

What are the fees included in Al Rajhi Bank car loans?

  • Annual financing statement fee

    RM5 per request

  • Charge for posting copy of AF agreement


  • Power of Attorney


  • Late penalty fee

    1% of the outstanding amount

  • Document retrieval and copying


Please click here for more information.

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

Al Rajhi Bank did not specify a payment method; however, for more information, call Al Rajhi Customer Care Hotline at +60323326000.

Do I need any insurance coverage for Al Rajhi Bank car loans?

You must obtain insurance coverage whereby you must ensure that the vehicle is adequately insured under a comprehensive motor Takaful policy. You may, however, use the services of other Takaful operators.

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.