What is the difference between this and a conventional car loan?
This car loan is based on the Al Ijarah Thumma Al-Bai concept. This means that the bank will rent you a car that it has purchased on your behalf and you lease it for the period that you pay off the loan installments. When you make your final payment ownership is transferred to you.
How do I know if I am eligible for Affin Islamic Hire Purchase-i?
Anyone over 18 years old can apply. It goes without saying that you need a valid driving license!
If you're under 21 years old and have no credit history you have yet to earn the bank's trust, so you might be asked to provide a guarantor for this car loan.
What kind of cars can be financed with this car loan?
Affin Islamic will accept new, used, or unregistered reconditioned cars, which can be either local, or foreign made cars. So, that's just about every car you can think of then. This package offers finance up to 90% of your car's value for up to nine years.
What are my monthly repayments like?
Affin Bank calculates your installments using a fixed flat interest rate. Over the course of your rental period, you will be following a fixed rental schedule. This is great if you want to know exactly how much to budget every month.
Does that mean I cannot settle my loan earlier?
Quite the opposite! You can settle your commitments earlier by paying a lump sum payment to the bank. On top of that, you will be given a rebate on uncharged interest as stated in the Hire Purchase Act 1967.
What happens when I fail to pay for my installments?
If you are found to have failed to pay two months worth of installments in a row, the bank has the right to repossess your car. That would leave you in a tight spot if your car is your main mode of transportation. But being just slightly late for your repayments is not quite so bad, you'll only pay a penalty fee of 1% on the total amount outstanding.
What documents do I need to apply for this car loan?
Photocopy of NRIC/Passport and valid driving license
Latest 3 months (without overtime) pay slips / salary vouchers; or
Latest 6 months (with overtime) pay slips / salary vouchers; or
Latest 6 months commission statements (for commission earners); or
Latest EA Form or Borang B supported by tax payment receipt or E-Filing supported by acknowledgement
Latest EPF statement, or
Latest 6 months savings/current account statements; or
Letter from employer to the Bank to confirm individual's income
Photocopy of NRIC/Passport and valid driving license; and
Photocopy of Certificate of Business Registration (Sole-proprietorship/Partnership); or
Partnership agreement (if any); or
Certificate of practice for professional (professional bodies); or
Business Permit / Trading License (if any)
Latest 6 months bank statements; and
Latest EA Form or Borang B supported by tax payment receipt or E-Filing supported by acknowledgement; or
Latest Financial Statements or Management Accounts
Contracts in hand; or
Sales vouchers (for agro-based sector); or
Deposits / Investment / Unit trust