AmBank Car Loan

About AmBank

AmBank Group is a Malaysian financial services group with over 40 years of experience assisting Malaysia’s economic development by providing a wide range of financial and service products such as personal banking, wealth management, insurance, loan and financing, and others to meet their customers’ needs.

Aside from that, AmBank Group also introduced AmBank Islamic Berhad, an Islamic banking firm that provides a comprehensive range of Shariah-compliant products. Thus, this can give the customer a selection and options.

What is a car loan?

A car loan is a method of purchasing vehicles where you apply for an amount to be used as collateral and finance it with banks. The maximum tenure on these types of loans is 9 years, though some have margins up to 90% or 100%. The remaining 10% is what we call a ‘down payment’.

What type of car loan does AmBank offer?

AmBank offers 2 types of car loans, which are:

• AmBank AmAUTOMate
• Arif Hire Purchase-i

What are the eligibility criteria to apply for AmBank car loans?

• Between 18 to 70 years old
• Minimum annual income of RM24,000

What are the benefits of AmBank car loans?

• Provides conventional as well as Islamic car loans
• Shariah-compliant auto financing based on the Islamic contract Al-Ijarah Thumma Al- Bai’
• Rapid approval thanks to a simplified application process
• High margin of financing of up to 90%
• Most flexible repayment period of 9 years
• Relationships with over 3,000 appointed car dealers
• Simple payment method and extensive channel via Online Banking, CDM, ATM, or AmBank nearest Branches

Who should I contact for further information about AmBank car loans?

• Email customercare@ambankgroup.com OR
• Visit their official website at here OR
• Visit the nearest AmBank branches

What are the fees included in AmBank car loans?

• Stamp duty

  RM20

• Redemption statement fee

  RM50 per request/ account

• Letter of Consent

  RM20 per letter

• Late penalty fee

  2% of the outstanding amount

• Document retrieval and copying

  RM20

Please click here for more information.

How do I make my monthly payments for AmBank car loans?

You can make your monthly payments in the most convenient ways possible by using various channel methods such as Auto Debit facility, online banking, CDM, ATM, or visiting the nearest AmBank branch.

Do I need any insurance coverage for AmBank car loans?

Obtaining motor insurance or Takaful is mandatory to cover losses and damages caused by an accident, fire, theft, and third-party bodily injury or death.

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.