5 Best Car Loans in Malaysia (September 2022)

Most of the times its really inconvenient and time consuming for people who are busy with other important matters to scroll through multiple websites and compare all the options from bankers across the internet. Well say no more! We have compiled some of the best car loans that Malaysia has to offer for you to decide!

There are many banks that provide car financing plans to the public ranging from fresh graduates scheme to multiple tier scheme. Interest that are commonly found in Malaysia are typically fixed and floating rates that are determined by the banks under the supervision of Bank Negara Malaysia (BNM).

Standardised Base Rate (SBR), effective 1 August 2022, SBR is the reference rate that all banks will use in the pricing of new retail floatingrate loans/financing, refinancing of existing retail loans/financing, and the renewal of revolving retail loans/financing. Retail loans/financing refer to loans/financing granted to individuals (not SMEs or businesses), while ‘floating-rate loans/financing’ refer to loans/financing where the interest rate / profit rate can change during the lifetime of the loan/financing. The SBR is linked solely to the Overnight Policy Rate (OPR), as determined by the Monetary Policy Committee of Bank Negara Malaysia (BNM).

In line with BNM’s announcement on 11 August 2021, SBR will be the same across all banks, unlike the Base Rate (BR) which is different for each bank. With the BR, changes to the BR are driven by factors that vary across banks. The SBR makes it simple and easy for you to understand and compare floating-rate loans/financing across banks, and allows you to make an informed decision when deciding which bank to take a new floatingrate retail loan/financing from.-CIMB Bank Berhad

1. Malayan Banking Berhad (MAYBANK)

First we wil start off with the most established and widely known bank in Malaysia which is Maybank. Maybank offers very competitive rates either fixed or floating to car loans customers here in Malaysia. There were 3 options of car loan plans to choose from and there are Hire Purchase Loan, MY first car plan and Murabahah Vehicle term financing-I.

For Hire Purchase loan, Maybank offers financing for selected new, secondhand and unregistered reconditioned foreign vehicles with financing tenure of up to 90% and 90% margin of finance. This type of loan is offered to all Malaysians and foreigners that pass all the documentation and requirements needed by the bank. The interest rate is also attractive and competitive with rates ranging from 3.4% to 4.1% for new vehicles and 4.25% to 4.5% for secondhand vehicles as quoted by the bank at the time. Unregistered reconditioned vehicle rates are not mentioned by the bank and will need further clarification by contacting the bank personally.

Next will be My First Car loan plan where Maybank offers financing for undergraduates and also fresh employed graduates. This plan also offers many features such as flexible and affordable repayment, hassle free with fast processing and approval, convenient loan payments via Maybank2u.com and over 400 Maybank branches nationwide and finally choice of dealers located nationwide. The requirements are very lenient whereby you only need 1 month payslip for employed graduates and can get higher chance of securing a loan with a guarantor and selected professions for both graduates and undergraduates. The interest rates are still the same as the Hire Purchase loan rates.

Finally, Murabahah Vehicle Financing Term-i provides flexible financing plan and protection in terms of takaful for muslims. Some of the features for this plan are flexible margin of financing, complete takaful protection, profit charges computation based on reducing balance, profit saving by extra payment and also granting of rebate for early settlement.

2. CIMB Bank Berhad

CIMB bank offers a straightforward car financing plans to the customers with updated fixed and variable rates within their website. There are 3 options that can be choose from which are Hire purchase loan, hire purchase islamic loan and first car financing loan.

Hire purchase loan offers financing plan for New, Used and Unregistered Reconditioned Vehicles – For examples: 4WD, MPV, SUV, Sedan and Motorcycle. This type of loan also offers up to 90% margin of finance for selected vehicle and flexible repayment period of up to 9 years. What is really interesting about this plan is that CIMB bank claims that bank loan approval is very fast of only 1-Minute ApprovalFast decision upon submission of complete documents with stable internet connection. That's really fast! For new passenger cars, the bank offers a competitive rate of 3.75% for national cars 2.7% for foreign cars and 3.0% for unregistered conditioned cars. Other than that, the bank also offers 4.45% and 4.00% respectively for used national and foreign passenger cars.

Hire purchase islamic loan offers the same fixed and variable rates as compared to the hire purchase loan with a slight difference in the concept of interest which are usually syariah compliant for muslim customers.

Lastly, we have First car financing loan which is mostly dedicated for fresh graduates who are looking to buy their new first car to kickstart their career. This plan offers affordable financing plan for New National Car only. The margin of finance is 90% with a tenure of up to 9 years. The difference of this plan is that it offers a more reasonable requirement of a minimum gross salary of RM 1500 and an acceptable Guarantor based on the applicants credit assessments.

3. Bank Simpanan Nasional (BSN)

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