20th August 2025 - 2 min read
RHB Banking Group has introduced a new product called Vehicle Financing-i (Variable Rate) Flexi Redraw. The financing option is structured to give borrowers greater flexibility in managing their vehicle instalments and cash flow.
Most vehicle financing in Malaysia is based on fixed instalments, leaving little room to lower costs early or regain access to money once it has been paid. Flexi Redraw introduces more flexibility by allowing borrowers to make additional payments beyond their scheduled instalments. These extra amounts directly reduce the profit charges on the outstanding balance, which can lower the overall financing cost over time.
Unlike conventional plans where extra payments are permanently absorbed, Flexi Redraw allows customers to withdraw only the excess balance they have paid on top of their scheduled instalments. Customers may redraw a minimum of RM2,000, in multiples of RM1,000, with each transaction subject to a fee of RM18.50. Withdrawals are available over the counter, giving borrowers access to funds they have already paid in while continuing with their financing arrangement.
The Flexi Redraw feature will also be available through Volvo Car Financial Services. Buyers of new Volvo models can choose this financing option, which combines variable profit rates with the ability to redraw excess payments. According to Volvo Car Malaysia, the collaboration extends existing financing choices available to its customers.
The financing is open to individuals between 18 and 65 years old, as well as business entities. It applies to new, unregistered, reconditioned, and used vehicles, with a minimum financing amount of RM80,000.
Excess payments that qualify for profit charge discounts are capped at 50% of the original financing amount. Withdrawals require a minimum amount of RM2,000 and must be made in multiples of RM1,000. A small fee applies for each withdrawal
You can also compare this financing with RinggitPlus’s list of car loans in Malaysia to see how it measures up against other banks’ current offerings.
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Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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