Bank Muamalat Car Loan

About Bank Muamalat

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


  • Power of Attorney


  • Letter of Guarantee and Indemnity (if any)


  • Letter of Offer and Facility Agreement


  • 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.