Who is the Bank Islam GradHitz Vehicle Financing-i made for?
The Bank Islam GradHitz Vehicle Financing-i is made for the younger crowd, catering to those between 20 to 30 years old. You must have at least a diploma and you'll need to be employee at any of the following:
- Government and Semi Government sector
- Selected Public Listed Companies
- Government Link Companies ( GLC)
- Other prominent Private Limited Companies as categorized under package companies listed by Bank Islam
You may require a guarantor, seeing how relatively young you are. A guarantor can be a sibling or a parent, who of course will need to have good financial standing.
Is this also an Islamic car loan?
Yes it is. It follows the principle of Murabahah, where you will have to pay the bank predetermined profits each month to have full ownership of the car. Bank Islam will be able to finance for up to 100% of the car's price, whether its a national, non-national or unregistered conditioned model!
It appears that this is a tiered car loan?
Yes, that is absolutely right, and it seems you've been doing your homework! Depending on your credit score you will be assigned to a certain tier that has a certain interest rate.
For example, with a credit score ranging from 1 to 3, the bank can give you an interest rate as low as 3% for a national car, or 2.9% for a foreign car. The highest credit rating of 7 to 8 will have an interest rate of around 3.6%. The higher your credit score the more interest you will pay.
The bank will revise its indicative profit rates from time to time, so be sure you keep yourself updated.
|Type of vehicles||Profit rates|
|National||From 3.00% p.a. to 3.60% p.a.|
|Non-national||From 2.90% p.a. to 3.35% p.a.|
Note: Indicative profit rates as of May 2017
What if I do not keep up with my repayments?
Good question! You will have to pay late payment charges by the way of Ta'widh of 1% per year on the overdue installments.
In the event that you do not pay for more than 2 months the bank has the right to take possession of the car, which we hope is a great deterrent from defaulting on your monthly repayments!
Do I need any Takaful coverage?
It is a legal obligation for you to undertake a comprehensive Motor Takaful coverage on the vehicle financed for the entire financing tenor. There is also an optional personal accident Takaful coverage known as Auto Financing Takaful Plan you can sign up.
Can I then opt for an early settlement of my car loan?
Yes, and you are entitled to a rebate which is calculated based on the deferred profit at the time of settlement.
What documents do I need to apply?
- Copy of NRIC (front and back)
- Copy of valid Driving License
- Copy of latest 3-months Salary slips; and
- Copies of latest 3-months Bank Statements (salary crediting account) ; or
- Latest EPF statements/EA Forms
- Other supporting documents as may deemed necessary and acceptable by the Bank for additional income support documents
You can get your loan approved within the acceptable turnaround time should all documents are submitted, subject fully to terms and conditions.