Affin Bank

Affin Islamic Hire Purchase-i

Comprehensive Islamic car loan with up to 90% financing and special rebates for early settlement

    • Up to 9 years tenure
    • Fixed Islamic financing
    • Flat profit rate
    • Up to 90% margin of finance
  • ConditionOriginMaximum YearsMargin of FinanceProfit Rate
    NewLocal9 years90%2.92% p.a.
    Foreign9 years90%2.6% p.a.
    UsedLocal9 years90%3% p.a.
    Foreign9 years90%3% p.a.

Fees & Charges

There are always fees but how much are they?

Profit Rate for New Cars
from 2.6% p.a. to 2.92% p.a., depending on car brand, borrowing amount, and period.
Profit Rate for Used Cars
from as low as 3% p.a., depending on car brand, borrowing amount, and period.
Stamp Duty
RM10
Photocopy Charges
RM10.60
Consent Letter
RM53.00
Early Settlement Fee
None
Late Penalty Fee
1% p.a. in arrears (Ta'widh)

*inclusive of 6% GST

Requirements

Do you qualify for this financing?

Minimum annual income
RM24000
Minimum age
18 years old
Maximum age
70 years old
Who can Apply
  • Malaysians

Frequently Asked Questions about Affin Islamic Hire Purchase-i

Things you might want to know

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?

Salaried Individual:

  Identity Document:
  Photocopy of NRIC/Passport and valid driving license
  Income Documents
  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

  Supporting Documents:
  Latest EPF statement, or
  Latest 6 months savings/current account statements; or
  Letter from employer to the Bank to confirm individual's income

Self-employed:

  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)

  Income Documents:
  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

  Supporting Document:
  Contracts in hand; or
  Sales vouchers (for agro-based sector); or
  Deposits / Investment / Unit trust

Read More