How do I know if I am eligible for Alliance Bank Hire Purchase?
That's easy! Are you at least 18 years old? If yes, do you have a valid driving license? If you do, there's nothing to stop you from clicking apply. If you think that you are too young, lack job stability, or have a bad credit history, having someone who can go guarantor for your loan might help you get approved.
Does it matter what kind of car I want to buy?
Yes, it does. There is little discrimination in terms of interest rates between local and foreign cars but generally, used cars come with a higher interest rate compared to brand new cars. Alliance Bank will generously finance up to 90% of your car's value, allowing you to pay it back in fixed installments over a maximum of nine years.
How do I pay my monthly car loan installments?
Once you're approved for the Alliance Bank Hire Purchase you'll receive a financial statement called the Second Schedule which outlines your commitments under the hire purchase agreement. Your monthly repayments will be a fixed amount calculated on a flat interest rate.
And what if I fail to pay every month?
There is a hefty price to pay if you're late on your repayments, which is 8% on the overdue amount. Under the Hire Purchase Act 1967, it only takes two months of defaulting on your repayments to grant the bank the authority to repossess your car!
How about if I would like to settle my car loan early?
You can do that, absolutely. You will also entitled to a rebate on the interest that was to be charged during the remaining loan period.
Okay, what documents do I need when applying?
Latest 3 months salary slips
Latest EA Form of Borang BE
Latest EPF statement
Latest 3 months bank statement/savings passbook
Latest 6 months bank statements
Latest Boring B (supported by tax payment receipt)
Performance Bonus - EA form for last 2 years