Kuwait Finance House, also known as KFH, is a bank based in Kuwait. It was established in 1977, and it operates according to Islamic Shariah rulings. It has $55 billion worth of assets and deposits to $34.97 billion.
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 KFH offer?
KFH offers 1 type of car loan, Automobile Ijarah-i.
What are the eligibility criteria to apply for Automobile Ijarah-i?
Malaysian or Permanent Resident
Minimum 18 years old (car applicant)
Minimum 30 years old (superbike applicant)
Minimum 21 years old (guarantor)
No minimum income (car applicant)
Minimum monthly income of RM7,000 (superbike applicant)
What are the benefits of Automobile Ijarah-i?
Suitable for new cars as well as superbikes (minimum engine power of 500 c.c. and above)
Minimum financing amount for the car is RM30,000 and RM25,000 for a superbike
90% financing margin for car and 75% for superbike
Tenure for the car is up to 9 years, while superbike is up to 7 years
Who should I contact for further information about Automobile Ijarah-i?
Call 1-300-88-8534 OR
Call +60321680464
What fees are included in Automobile Ijarah-i?
Interest rate for new cars
from as low as 2.5% p.a., depending on the car brand, borrowing amount, and period
Stamp duty
RM10
Early settlement fee
None
Late penalty fee
1% of the overdue instalment amount
How do I make my monthly payments for Automobile Ijarah-i?
Once you have agreed to the financing agreement, your total approved amount will be compounded with profit charges and divided into equal monthly instalments.
Do I need any insurance coverage for Automobile Ijarah-i?
After getting approved by KFH for a car loan, it is recommended to get car insurance.
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.
