Hong Leong Bank Berhad is a Malaysia-based regional financial services firm with offices in Singapore, Hong Kong, Vietnam, Cambodia, and China. The Bank emphasises the development of financial capabilities to serve its clients across five continents and is technology-focused. Hong Leong Bank Berhad (“HLB” or “the Bank”) is a subsidiary of the Hong Leong Group and is listed on Bursa Malaysia.
What is a car loan?
When you buy a car, one of your expenses is the car loan cost. A car loan is a type of loan that lets you borrow money to pay for a car. You can use a car loan to buy a new or used car. The terms of a car loan typically depend on the age and value of the car and your credit history.
What type of car loan does Hong Leong Bank offer?
Hong Leong Bank offers 2 types of car loans, which are:
Hong Leong Auto Loan
Hong Leong Islamic Auto Financing-i
What are the eligibility criteria to apply for Hong Leong Bank car loans?
Malaysian
Between 21 to 70 years old
Minimum annual income of RM24,000
What are the benefits of Hong Leong Bank car loans?
Repayment period up to 9 years
Margin of finance up to 90%
Settlement rebate is available
Payment platforms such as Hong Leong Connect, interbank GIRO (MEPS IBG), Standing Instruction facility (CASA automatic debit), ATM, CDM, and Hong Leong Bank branches are available
Who should I contact for further information about Hong Leong Bank car loans?
What are the fees included in Hong Leong Bank car loans?
Interest rate for new cars
From 2.80% to 3.24% p.a., depending on the car brand, borrowing amount, and period
Interest rate for used cars
From as low as 3.78% 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% in arrears (Ta’widh) for Hong Leong Islamic Auto Financing-i)
How do I make my monthly payments for Hong Leong Bank car loans?
The bank offers a variety of payment options, including Hong Leong Bank online banking service, interbank GIRO, and even paying monthly payments in person at a Hong Leong Bank branch. Your payments are based on a fixed interest rate, so you will not have to worry about your payments fluctuating over the term of your loan.
Do I need any insurance coverage for Hong Leong Bank car loans?
Yes. The car must have insurance coverage. You must maintain the car covered by comprehensive insurance throughout the financing duration.
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.
