Bank Muamalat Malaysia is a bank with assets and liabilities brought over from the Islamic banking windows by three banks: Bank Bumiputra Malaysia, BBMB Kewangan (now known as UBS), and Bank of Commerce (Malaysia) Berhad.
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 Bank Muamalat offer?
Bank Muamalat offers 2 types of car loans, which are:
Muamalat Vehicle Financing-i
Muamalat Auto-Grad Scheme
What are the eligibility criteria to apply for Bank Muamalat car loans?
Muamalat Vehicle Financing-i
Malaysians and foreigners
Between 18 to 65 years old (must not exceed age 70 upon maturity)
Minimum annual income of RM24,000
Muamalat Auto-Grad Scheme
Malaysians
Between 20 to 35 years old (must not exceed age 44 upon maturity, the application is within 5 years of graduation)
Minimum monthly income of RM2,300
Minimum qualification of a diploma
What are the benefits of Bank Muamalat car loans?
Repayment period of up to 9 years
Flat rate
Margin of finance up to 100%
Who should I contact for further information about Bank Muamalat car loans?
If you require any further information, please call +60326005500.
What are the fees included in Bank Muamalat car loans?
Interest rate for new cars
From 2.95% to 3.10% p.a., depending on the car brand, borrowing amount, and period
Stamp duty
RM10
Power of Attorney
RM10
Letter of Guarantee and Indemnity (if any)
RM10
Letter of Offer and Facility Agreement
RM10
Late penalty fee
1% in arrears (Ta’widh)
How do I make my monthly payments for Bank Muamalat car loans?
The benefits of Bank Muamalat car loans are you only pay a fixed monthly instalment, which consists of the principal amount and profit charges. You must pay an advance payment (deposit) equivalent to 2 monthly instalments on your car financing once you agree to the contract.
Do I need any insurance coverage for Bank Muamalat car loans?
It is recommended to get car insurance after getting approved by Bank Muamalat for a car loan.
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.
