Best Car Loan in Malaysia

car-loan

Is getting a new/used car on your mind?

If you want to do so, the next step would most probably be taking up a loan offered by banks. Look no further, whether it is a brand new set of wheels or a used car, you have every reason to check out the comparison of car loans offered by banks. We have taken the hassle to check out the interest rates offered by these banks and simplify your hunting for the best car loan.

About Car Loans in Malaysia:

In Malaysia, the type of loan which can be taken up for buying a car is known as a flat interest rate. A flat interest rate involves a fixed interest rate on the amount you have borrowed.

 

For example,

You apply for a loan of RM20,000 at 5% flat p.a for a duration of 5 years. This means that you will have a monthly repayment of 60 months.

The total interest cost will be 5% x RM20,000 x 5 years = RM5,000 (per year)

Over the course of 5 years, the total payable amount where principle (RM20,000) plus interest (RM5,000) is equivalent to RM25,000 which is RM416.67 per month.

 

Let’s have a look at the interest rates offered by our local banks. Bear in mind that the interest rate offered is also depending on various factors such as these two main factors:

(1) Value , Type (Local or Imported  Car)

(2) Loan Tenure / Period

 

The Best Car Loan in Malaysia

For illustration purposes, let take an example of purchasing a local car such as the Perodua Myvi, with a loan of RM30,000 for 7 years, the comparison of interest rate among banks are as below:

Bank Name Interest Rate(%per year) Total Interest over Loan Period Monthly Repayment
RHB Bank 2.70% RM5,670 RM425
Bank Muamalat 2.75% RM5,775 RM426
Affin Bank 2.88% RM6,048 RM429
CIMB Bank 2.90% RM6,090 RM430
Alliance Bank 2.95% RM6,195 RM431
AmBank Group 2.95% RM6,195 RM431
Public Bank 2.95% RM6,195 RM431

 

Another example which could be used for comparison purposes would be for an imported car such as the Hyundai Elantra with a loan of RM60,000 for a duration of 7 years. The comparisons for interest rates offered by banks are as below:

Bank Name Interest Rate(%per year) Total Interest over Loan Period Monthly Repayment
Affin Bank 2.41% RM10,122 RM835
Alliance Bank 2.41% RM10,122 RM835
AmBank Group 2.45% RM10,290 RM837
Hong Leong Bank 2.47% RM10,374 RM838
Public Bank 2.50% RM10,500 RM839
Rhb Bank 2.50% RM10,500 RM839
Maybank 2.54% RM10,668 RM841

 

With the above information, you may find choosing the best rate is just a finger away by visiting the respective bank’s website to get the best rate for your choice of car.

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