Public Bank Car Loan

About Public Bank

Public Bank Berhad is a Malaysian bank headquartered in Kuala Lumpur that offers financial services throughout Asia and the Pacific. Public Bank provides personal banking, commercial banking, Islamic banking, investment banking, share broking, trustee services, nominee services, unit trust fund sale and administration, bancassurance, and general insurance products.

What is a car loan?

A car loan is also known as a hire purchase in Malaysia, and it is when you apply for a loan from a selected bank to finance the purchase of your vehicles, whether new, used, or reconditioned.

The maximum loan tenure is 9 years, with a finance margin of up to 90% or 100% (depending on the bank), with the remainder considered as your down payment.

What type of car loan does Public Bank offer?

Public Bank offers 1 type of car loan, Public Bank Aitab Hire Purchase-i.

What are the eligibility criteria to apply for Public Bank Aitab Hire Purchase-i?

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

What are the benefits of Public Bank Aitab Hire Purchase-i?

  • Enjoy flexible repayment periods up to 9 years
  • Fixed Islamic loan
  • Flat Profit type
  • Get margin of finance up to 90%
  • Early settlement rebate is available

Who should I contact for further information about Public Bank Aitab Hire Purchase-i?

If you require any further information on Aitab Hire Purchase-i, please email

What are the fees included in Public Bank Aitab Hire Purchase-i?

  • Interest rate for new cars

    From 2.84% to 3.31% p.a., depending on the car brand, borrowing amount, and period

  • Interest rate for used cars

    From 4.05% to 4.1% p.a., depending on the car brand, borrowing amount, and period

  • Stamp duty


  • Photocopy charges


  • Letter of consent


  • Early settlement fee


  • Late penalty fee

    8% of the outstanding balance

How do I make my monthly payments for Public Bank Aitab Hire Purchase-i?

Following the approval of your loan, you will be provided with a schedule of your fixed instalments, which will include all vital information regarding your monthly repayments. You may transfer funds using internet banking, ATM transfers, or Standing Instruction.

Do I need any insurance coverage for Public Bank Aitab Hire Purchase-i?

  • For vehicles financed under AITAB Hire Purchase-i, a Takaful plan is required; however, if you pick another insurance coverage, you will be responsible for the first premium payment as part of the deposit provided to the dealer/ seller
  • In the case of non-motor vehicle items, for the period of the Hire Purchase Agreement
  • You must purchase comprehensive insurance/ Takaful coverage with a minimum insured/ covered sum equal to the financed amount or 85% of the Purchase Price, whichever is higher
  • You are urged to get supplementary Takaful coverage in the case of Force Majeure

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.