CIMB Car Loan

About CIMB

CIMB Group is a significant ASEAN universal bank and a leading corporate adviser in the country. It also leads the globe in Islamic finance. Consumer banking, commercial banking, investment banking, Islamic banking, and asset management are among the goods and services offered by the group, which is based in Kuala Lumpur, Malaysia. ASEAN’s sixth-largest banking group by assets, with over 33,000 employees and over 17 million clients as of September 30, 2021.

What is a car loan?

Buying a car usually involves taking out a car loan. You have undoubtedly spent much time studying automobile choices if you are in the market for a new vehicle, but do you know how car loans work?

When you take out a vehicle loan from a bank, you receive your money in one lump amount and then pay it back over time (plus interest). The size of your monthly payment is determined by how much you borrow, how long it takes you to repay it, and your interest rate.

What type of car loan does CIMB offer?

CIMB offers 2 types of car loans, which are:

  • Hire Purchase
  • Hire Purchase-i

What are the eligibility criteria to apply for CIMB car loans?

  • Malaysian
  • Between 18 to 70 years old
  • Minimum annual income: RM24,000

What are the benefits of CIMB car loans?

  • Repayment period is up to 9 years
  • Fixed financing loan (Flexi/ Fixed Islamic Loan for CIMB Hire Purchase-i)
  • Variable/ Flat Profit type
  • Margin of finance up to 90%
  • Early settlement rebate is available

Who should I contact for further information about CIMB car loans?

If you have any inquiries, you may contact one of the Auto Finance Centres around the country or visit the bank’s official website. You may also contact them at +60362047788 or email cru@cimb.com.

What are the fees included in CIMB car loans?

  • Interest rate for new cars

    From 2.65% to 2.85% p.a., depending on the car brand, borrowing amount, and period

  • Interest rate for used cars

    From 4% to 4.45% p.a., depending on the car brand, borrowing amount, and period

  • Stamp duty

    RM10

  • Consent letter

    RM50

  • JPJ fee

    RM20

  • Early settlement fee

    None

  • Late penalty fee

    8% of the outstanding balance (1% for Hire Purchase-i)

How do I make my monthly payments for CIMB car loans?

  • CIMB Hire Purchase
    • A flat interest rate is used to compute your monthly payments.
    • If you use this flat interest rate, your payments will be set and stiff as a stick for the loan duration. Your auto loan payments will be consistent month after month
    • On the other hand, you can choose monthly instalments at a variable rate. As a result, your interest rate may change during your loan
  • CIMB Hire Purchase-i
    • CIMB Hire Purchase-i follows CIMB’s Shariah guidelines. The bank will predetermine your lease payments based on a fixed interest rate, leaving no possibility for principal reduction or reduced interest rate charges
    • Otherwise, you can pick a variable rate for your monthly instalments, which means your monthly payments will fluctuate during the loan term

Do I need any insurance coverage for CIMB car loans?

You must purchase comprehensive Takaful coverage on the funded asset for the financing tenure.

However, if you choose traditional insurance coverage, you will be responsible for the first premium payment as part of the deposit given to the dealer/ seller. You can get supplementary coverage against any applicable force majeure risks from any licenced Takaful/ insurance business operating in Malaysia and comprehensive coverage.

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.

  • Cash Back 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

    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.