Bank Rakyat Car Loan

About Bank Rakyat

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!

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 Bank Rakyat offer?

Bank Rakyat offers 5 types of car loans, which are:

Hire Purchase Vehicle Financing-i (An Naqlu 1)
Vehicle Financing-i (An Naqlu 2)
Vehicle Financing-i (An Naqlu 2) – Graduate Scheme
HP-i Unregistered Recond
Hire Purchase Vehicle Financing-i (Warga Emas)

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

Hire Purchase Vehicle Financing-i (An Naqlu 1)
- Malaysian
- Above 18 years old (60 years old at the end of financing tenure)

Vehicle Financing-i (An Naqlu 2)
- Malaysian
- Above 18 years old (60 years old at the end of financing tenure)
- Fixed income earner (public and GLC sector employees with at least 6 months of service)
- Minimum monthly income of RM1,500

Vehicle Financing-i (An Naqlu 2) – Graduate Scheme
- Malaysian
- Between 20 to 30 years old
- Minimum monthly income of RM2,000

HP-i Unregistered Recond
- Malaysian
- Above 18 years old (60 years old at the end of financing tenure)
- Working in public and private sectors

Hire Purchase Vehicle Financing-i (Warga Emas)
- Malaysian
- Does not exceed 65 years old at the end of financing tenure
- Public sector pensioners, employees of public and private sectors, professional and non-fixed income earners

What are the benefits of Bank Rakyat car loans?

Maximum margin of 90% from on the road (OTR) sales price or invoice
Maximum financing tenure up to 9 years
Financing limit is open and subject to the customer’s ability for monthly instalment commitment.
Financing is for any purchase of New, Pre-registered and Unregistered Reconditioned vehicles

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

Call 1-300-80-5454 OR
Email telerakyat@bankrakyat.com.my

What are the fees included in Bank Rakyat car loans?

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)
Stamp duty

RM10
Letter of Consent

RM15
JPJ fee

RM15
Early settlement fee

None
Late penalty fee

1% of the overdue instalment amount

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

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!

Do I need any insurance coverage for Bank Rakyat car loans?

It is recommended to get car insurance after getting approved by Bank Rakyat 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.