Bank Simpanan Nasional (BSN) is a Malaysian government-owned bank. BSN branches and BSN banking agents provide banking services. BSN was founded on December 1, 1974, by Tengku Razaleigh Hamzah, the Minister of Finance at the time. Asset management, insurance, and takaful are among the services provided by the agency’s subsidiaries and collaborators.
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 BSN offer?
BSN offers 2 types of car loans, which are:
BSN Hire Purchase
BSN Hire Purchase-i
What are the eligibility criteria to apply for BSN car loans?
Malaysian
Between 21 to 65 years old
Minimum annual income of RM24,000
Salaried employees of:
Government sector
Government-linked company
Public listed company
Professional
What are the benefits of BSN car loans?
Financing margin of up to 90%
Minimum borrowing amount of RM25,000
Borrow for as little as 3 to 9 years
Available for the purchase of new automobiles and selected imported old vehicles
Who should I contact for further information about BSN car loans?
Contact any of BSN Auto Finance Centre (AFC) or branches
What are the fees included in BSN car loans?
Profit rate for new cars
from 2.55% to 3.15% p.a., depending on the car brand, borrowing amount, and period
Stamp duty
RM10
Early settlement fee
None
Late penalty fee
8% of the outstanding balance (1% p.a. in arrears for BSN Hire Purchase-i)
How do I make my monthly payments for BSN car loans?
Salary deduction under Biro Perkhidmatan Angkasa or Jabatan Akauntan Negara
Other channels include Standing Instructions, over-the-counter, online banking, and ATM/ CDM for non-salary deduction schemes
Do I need any insurance coverage for BSN car loans?
Yes. Under the Hire Purchase Act of 1967, Takaful coverage is required for the duration of the financing tenure.
As the owner, BSN is responsible for ensuring that a comprehensive Takaful policy insures the vehicle for the first year alone
As a service agency, the hirer is responsible for renewing a full Takaful policy, including force majeure coverage, for the following years.
You must also notify BSN of the renewal of the Takaful insurance 14 days before the policy’s expiration date
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.
