Bank Rakyat’s car loan interest rate in Malaysia operates under Islamic principles, and the profit rate using a flat rate system. For new local and foreign cars, the rate ranges from 2.8% to 3.2% per annum, depending on the loan tenure and the car’s condition. Used cars also fall within the same range. The flat rate system ensures a fixed profit rate throughout the loan period, which can extend up to nine years.
Bank Rakyat Hire Purchase Interest Rate
What Are the Requirements and Eligibility for Bank Rakyat’s Car Loan?
To be eligible for Bank Rakyat’s car loan, applicants must be Malaysian citizens aged between 18 and 60 years old, with a minimum monthly income of RM1,500. Applicants should have been employed for at least six months. Required documents include a copy of the applicant’s MyKad, driving license, the latest three months’ salary slips, and a statement of account transactions. Takaful insurance coverage is mandatory before operating a vehicle on the road, and Bank Rakyat offers options through its panel Takaful companies.
How Does Bank Rakyat’s Car Loan Compare to Other Banks?
Bank Rakyat offers competitive profit rates compared to other financial institutions in Malaysia. For instance, the profit rate for Bank Rakyat’s Hire Purchase Vehicle Financing-i (An Naqlu 1) is 3.05% per annum for a five-year tenure, which is comparable to AmBank’s AmAUTOMate and AmBank Islamic Arif Hire Purchase-i that also offer 3.05% per annum over the same period. However, banks like BSN and Bank Islam offer slightly lower rates at 2.35% per annum for similar tenures. Each bank’s offerings vary based on the car’s condition, loan tenure, and other factors, emphasizing the importance of comparing rates before making a decision.
What Are the Fees and Charges Associated with Bank Rakyat’s Car Loan?
The fees and charges for Bank Rakyat’s car loan include a RM10 stamp duty for the Ijarah Agreement and a RM15 fee for a consent letter from JPJ. Late payment incurs a penalty of 1% per annum on the overdue installment amount. There is no early settlement fee, but terms of agreement with the bank may apply. These fees are consistent with industry standards in Malaysia, ensuring transparency and predictability for borrowers.
How Can Borrowers Make Loan Repayments?
Loan repayments to Bank Rakyat can be made through various methods, ensuring convenience and flexibility for borrowers. Options include salary deduction via Biro Perkhidmatan Angkasa, cash payments over-the-counter or through CDM, cheque deposits, standing instructions from online banking accounts, and savings account deductions. Borrowers are encouraged to make prompt payments to avoid late payment charges and to maintain a good credit rating.
Why Choose Bank Rakyat’s Hire Purchase Vehicle Financing-i?
Bank Rakyat’s Hire Purchase Vehicle Financing-i (An Naqlu 1) offers several benefits, including competitive profit rates, flexible repayment options, and comprehensive support for both new and used car purchases. The Islamic finance principle of Al-Ijarah Thumma Al-Bai’ (AITAB) ensures that the financing aligns with Shariah law, appealing to those seeking ethical financial solutions. With a maximum margin of finance up to 90% and a tenure of up to nine years, this product is tailored to meet the needs of a wide range of consumers.