RHB Bank car loan settlement refers to the process of fully repaying a vehicle loan provided by RHB Bank before the end of the loan tenure. This action can be initiated by the borrower who wishes to clear the debt earlier than scheduled. In Malaysia, car loan settlements are common for borrowers who want to reduce their financial liabilities or benefit from any early settlement rebates offered by financial institutions. Car loan settlements allow borrowers to take advantage of several benefits, such as saving on interest charges, eliminating monthly repayments, and improving credit scores.
RHB Bank Car Loan Early Settlement
How Does RHB Vehicle Financing-i (Variable Rate) Work?
RHB Vehicle Financing-i (Variable Rate) operates on a profit-sharing model that complies with Shariah principles. It allows borrowers to finance their vehicle purchase with a margin of up to 90% and offers a maximum financing period of 108 months. This facility offers competitive rates and fast approval. The profit is calculated based on the reducing balance method, which means the profit charges decrease as the outstanding balance reduces. This method helps borrowers save on profit charges over time. Moreover, the financing offers flexibility through features such as the Flexi Redraw option, which allows borrowers to make excess payments and withdraw them when needed.
What Are the Benefits of RHB Vehicle Financing-i (Variable Rate) Flexi Redraw?
The RHB Vehicle Financing-i (Variable Rate) Flexi Redraw provides several advantages to borrowers. Key benefits include no penalty for early settlement, flexibility in withdrawing excess funds, and principal reduction through excess payments. Borrowers can enjoy lower monthly instalments due to competitive rates and a flexible tenure of up to 9 years. Extra payments help reduce profit charges, enhancing overall savings. The Flexi Redraw feature allows borrowers to manage their finances better by giving them the option to withdraw excess payments when required. This flexibility is particularly beneficial for managing unexpected expenses.
What Are the Eligibility Criteria for RHB Vehicle Financing-i?
To qualify for RHB Vehicle Financing-i, individuals must be at least 18 years old. A guarantor is required for applicants below 21 years or above 60 years, and non-Malaysians. Eligible applicants include sole proprietorships, partnerships, private limited, and public limited companies. The financing is available for both new and unregistered reconditioned vehicles, with specific packages for hybrid plug-in and electric vehicles. For these eco-friendly vehicles, RHB offers a Green Financing Rate starting from SBRI + 0.94% per annum. This initiative aligns with environmental sustainability efforts while providing competitive financing options.
How Can You Save on Profit Charges with RHB Car Loan Settlement?
By opting for an early settlement of your RHB car loan, you can significantly reduce profit charges. The reducing balance method applied by RHB ensures that profit charges decrease as the outstanding principal amount reduces. Making excess payments allows you to lower the principal faster, which in turn reduces the overall profit charges. The absence of exit fees for early settlement is an added advantage, encouraging borrowers to clear their debt sooner without incurring additional costs. Calculating potential savings using a loan settlement calculator can help borrowers make informed decisions.
What Are the Available RHB Car Loan Packages?
RHB offers several car loan packages tailored to different customer needs. These include the Vehicle Financing-i (Variable Rate), Volvo Car Finance Package, Green Financing Package, and Used Car Financing. Each package has unique features and benefits, such as flexible repayment terms, competitive rates, and high financing margins. The Volvo Car Finance Package, for example, offers financing up to 90% with a tenure of 9 years at an attractive rate of SBRI + 0.76% per annum. The Green Financing Package is aimed at environmentally conscious buyers, offering competitive rates for hybrid and electric vehicles.
How to Apply for RHB Vehicle Financing-i?
Applying for RHB Vehicle Financing-i is straightforward. Potential borrowers can visit any RHB branch or apply online through RHB’s website. Applicants need to provide necessary documents such as a copy of MyKad, driving license, and proof of income. For business entities, additional documents like business registration certificates and financial reports are required. The application process is designed to be efficient, with a focus on quick approvals. RHB’s extensive branch network and online services provide convenient options for application and payment.
What Is the Role of Hire Purchase Reducing Term Takaful (HPRTT)?
Hire Purchase Reducing Term Takaful (HPRTT) is a Takaful protection plan offered with RHB Vehicle Financing-i. This plan ensures that the outstanding loan amount is covered in the event of the borrower’s death or total permanent disability. HPRTT provides maximum coverage with guaranteed acceptance and does not require underwriting for coverage up to RM200,000. With 24-hour worldwide coverage, it offers peace of mind to borrowers and their families. The plan underscores the importance of financial protection alongside vehicle financing.
How Can You Calculate Your Car Loan Settlement with RHB?
RHB provides a car loan settlement calculator to help borrowers determine the settlement amount and potential savings. The calculator requires inputs such as loan amount, interest rate, loan tenure, and the number of instalments paid to date. It then computes the total payment to the bank, monthly instalments, and the rebate from settlement. This tool is beneficial for borrowers considering early settlement, enabling them to assess financial implications accurately. By understanding the settlement amount, borrowers can plan their finances effectively and make informed decisions.
Can You Customize Your Car Loan Tenure with RHB?
While RHB offers flexible loan tenures up to 9 years, borrowers cannot customize the tenure by making partial settlements. The loan agreement typically specifies a fixed tenure, but borrowers can choose early full settlement to adjust their repayment schedule. Early settlement helps in saving on profit charges and eliminating monthly instalments, but the tenure itself remains unchanged unless fully settled. RHB’s no penalty policy for early settlement makes it feasible for borrowers to clear their debt without incurring additional costs.
What Are the Key Features of RHB’s Green Financing Package?
RHB’s Green Financing Package is specifically designed for hybrid plug-in and electric vehicles. The package offers financing up to RM500,000 with rates starting from as low as SBRI + 0.94% per annum. This initiative supports environmentally friendly vehicle purchases by offering attractive financing rates. The campaign period runs from 1 January 2025 to 30 June 2025, providing ample opportunity for buyers to take advantage of this offer. By promoting eco-friendly transportation, RHB aligns with broader sustainability goals while catering to the needs of environmentally conscious consumers.
What Happens If a Borrower Defaults on RHB Car Loan Payments?
In the event of a default on RHB car loan payments, the bank may initiate recovery actions. These actions can include legal proceedings to repossess the financed vehicle or enforce any guarantees provided during the loan application. Borrowers are encouraged to communicate with the bank if they face financial difficulties, as RHB may offer restructuring options or temporary relief measures. It is crucial for borrowers to understand their obligations and maintain regular payments to avoid the repercussions of default.