Affin Bank car loan settlement is the process by which a borrower fully repays the outstanding amount of a car loan with Affin Bank before the end of the agreed loan tenure. In the context of Malaysia, this involves settling the balance of a hire purchase facility that has been utilized to finance a vehicle acquisition. The borrower makes monthly instalments for the duration of the loan tenure, and the ownership of the vehicle is transferred to the borrower upon full settlement of the loan. This financial product is governed by the Hire Purchase Act 1967, which provides guidelines on the rights and obligations of both the borrower and the lender.
Affin Bank Car Loan Early Settlement
What Do You Get from Affin Bank Car Loan Early Settlement?
When you opt for an Affin Bank car loan settlement, several key benefits and features are available. You receive a fixed-rate hire purchase facility which helps you finance your vehicle acquisition through monthly instalments. The amount financed can be up to 90% of the invoiced price for new cars and up to 85% for used cars. The tenure of the loan can be flexible, with options extending up to nine years. The term charges rate is a fixed percentage per annum, providing stability in your repayment schedule.
What Are Your Obligations Under Affin Bank Car Full Loan Settlement?
As a borrower, your primary obligation under the Affin Bank car loan settlement is to pay your monthly instalments promptly. The total amount payable over the loan tenure includes the principal amount and term charges. It is crucial to maintain timely payments to avoid late payment penalties or the risk of vehicle repossession. If you fail to pay two successive monthly instalments, the bank has the right to repossess your vehicle.
What Fees and Charges Apply to Affin Bank Car Loan Settlement?
Several fees and charges are associated with the Affin Bank car loan settlement. Some of these include:
- Letter of consent for loss of registration card/change of vehicle registration number and/or engine number: RM 50.00
- Transfer service charge (where the Bank’s ownership claim needs to be endorsed): RM 20.00
- Redemption of Hire Purchase accounts: RM 50.00
- Postage: RM 1.00 for normal mail, RM 5.00 for registered mail
- Photocopy of security documents (used/reconditioned cars): RM 10.00
For a comprehensive list of fees and charges, you can visit Affin Bank’s website or contact their customer service.
What Happens If You Fail to Fulfill Your Obligations?
Failure to fulfill obligations under the Affin Bank car loan settlement can have several consequences. If you default on your monthly instalments, a late payment penalty of 8% per annum calculated daily will be charged. The bank reserves the right to repossess your vehicle if you fail to pay two successive monthly instalments, or after four successive instalments in the event of death. Additionally, the bank may set off any credit balance in your accounts maintained with them against outstanding monthly instalments, with a seven-day prior written notice. Legal action may also be taken to recover overdue amounts, potentially affecting your credit standing.
Can You Fully Settle the Loan Before Maturity?
Yes, you can fully settle the loan before its maturity under the Affin Bank car loan settlement. You will receive a statutory rebate on the unearned term charges as stipulated by the Hire Purchase Act 1967. The rebate is calculated using a specific formula: Rebate = Term Charges x n(n+1) / N(N+1), where “n” represents the remaining loan tenure in months and “N” is the original loan tenure in months.
Is Insurance Coverage Required for Affin Bank Car Loan Settlement?
Insurance coverage is mandatory under the Affin Bank car loan settlement. A comprehensive insurance policy must be maintained for the duration of the loan tenure. You are required to inform the bank of the renewal of the insurance policy within 14 days before its expiry. Additionally, you are encouraged to take a creditor’s term assurance policy to cover unforeseen events such as death or total permanent disability.
What Are the Major Risks Involved?
One of the major risks associated with the Affin Bank car loan settlement is that the term charges rate remains fixed for the entire loan tenure. This means that the interest rate will not change, regardless of fluctuations in the market. While this provides predictability in repayments, it may not be advantageous if market rates decrease during the loan tenure.
What Should You Do If There Are Changes to Your Contact Details?
It is important to notify Affin Bank of any changes to your contact details under the Affin Bank car loan settlement. This ensures that all correspondences reach you in a timely manner. The notification must be in writing and either mailed or delivered by hand to the nearest branch.
Where Can You Get Assistance and Redress?
If you encounter difficulties in making payments under the Affin Bank car loan settlement, you should contact Affin Bank as soon as possible to discuss repayment alternatives. Their Asset Quality Management team is available during business hours to provide assistance. Additionally, you can lodge a complaint about the product or services via the bank’s website or customer feedback channels. If the issue is not satisfactorily resolved, you can approach Bank Negara Malaysia or Agensi Kaunseling dan Pengurusan Kredit (AKPK) for further assistance.
What Further Information Is Available?
For more information on the Affin Bank car loan settlement, you can visit the nearest Affin Bank or Affin Islamic branch, call their contact centre, or visit the bank’s official website. It is important to thoroughly understand all terms and conditions before proceeding with the loan settlement to ensure a smooth and hassle-free experience.