Bank Rakyat has been operating for over 58 years now, making it one of the most established banks in Malaysia. It currently holds assets worth RM111 billion as of Dec 2020, making it a huge player in this scene!
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’.
Bank Rakyat offers 5 types of car loans, which are:
Interest rate for new cars
From 2.8% to 3.2% p.a., depending on car brand, borrowing amount, and period (also applicable to used cars)
Letter of Consent
Early settlement fee
Late penalty fee
1% of the overdue instalment amount
Depending on which types of payment you agreed to make before accepting the contract. To avoid the late payment charge, it is crucial that you make prompt and full repayment of your monthly instalment. This ensures there are no additional fees or interest charges incurred as well!
It is recommended to get car insurance after getting approved by Bank Rakyat for a car 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.
A balloon payment reduces monthly payments on a vehicle loan, but it necessitates a hefty amount after the term.
When buying a new or used automobile, the buyer may be given the option of lowering their car loan’s interest rate.
A form of refinance loan that allows you to utilise the equity in your automobile to get cash while refinancing it.
A term that refers to your credit history and can help determine whether you will be able to repay a car loan.
The interest rate is the percentage that the bank will charge on top of the principal amount or the amount that must be repaid.
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.
The loan amount granted by the financial institution is expressed as a percentage of the property’s value pledged to secure the loan.
The total number of months or years required to pay off your loan.
Someone who is legally obligated to repay your loan if you cannot do so.
The monthly payment you must pay to the bank to pay off your loan.
The borrower violates the loan agreement, most commonly by failing to make the agreed-upon monthly payments.