I am 18 years old am I eligible for Al-Rahji Automobile Financing-i?
Sadly, no. You have to be at least 21 years old with an income of no less than RM2000 a month to be eligible for this car loan.
I assume this is an Islamic car loan?
Yes, you're absolutely right. Al Rajhi Bank's Automobile Financing agreement is based on the Islamic Contract of Bai' Bithaman Ajil or Sale on Deferred Price, paid for via monthly installments.
And how are my monthly installments calculated?
As the interest rate is flat, you will be paying a fixed amount over the whole of your tenure until you have paid all of the principal amount plus interest. Your interest charges will be calculated based on your borrowing and the length of your financing period. The longer the time you choose to pay off your car loan, the higher the interest rate you will be charged.
And if I fail to pay for the installments?
If that's the case, you will have to pay a late penalty fee. If you miss payment for two months in a row the bank will have the right to repossess your vehicle. If you think you're going to be late wit a car loan payment: call the bank and let them know.
How about if I want to settle my car loan early?
You are most welcome to if you have the money to do so. When you pay your car loan off before it's due Al-Rahji Bank will NOT charge you any early settlement fees and instead gift you with a profit rebate for early ownership!
What documents do I need to apply for this product?
Below are the basic requirements. Other supporting income documents may be needed, so bring whatever you think is necessary.
A copy of:
NRIC or Military ID or Police ID
Latest 3 months pay slip
Latest 3 months Bank statement
Dealer/Seller quotation or invoice