Bank Islam

Bank Islam Vehicle Financing-i

A fixed rate Islamic car loan that finances up to 90% of the vehicle price at competitive profit rates and gives cashback on 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%3% p.a.
    9 years90%3.6% p.a.
    Foreign9 years90%2.9% p.a.
    9 years90%3.35% p.a.
View product disclosure sheet.

Fees & Charges

There are always fees but how much are they?

Profit Rate for New Cars
from 2.9% p.a. to 3.6% p.a., depending on car brand, borrowing amount, and period.
Stamp Duty
RM20
Early Settlement Fee
None
Late Penalty Fee
1% p.a. of the outstanding amount

Requirements

Do you qualify for this financing?

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

Frequently Asked Questions about Bank Islam Vehicle Financing-i

Things you might want to know

Am I eligible for Bank Islam Vehicle Financing-i?

If you are a Malaysian individual aged between 18 and 60 years old, and earns a fixed income, Bank Islam will certainly consider your application. The credit approval rule of thumb around these part is that your monthly loan repayments should not exceed 1/3 of your monthly salary.

Is this an Islamic car loan? How does it work?

The Bank Islam Vehicle Financing-i is based on Islamic concept of Murabahah, i.e. method of sale with deferred payment. Bank Islam can finance up to 90% of the car's price and is willing to give you a maximum period of nine years to pay off the loan amount. 

The profit rate and selling price will be fixed and known to you upfront at no hidden or extra charges. All you need to do is service your monthly instalments religiously to avoid incurring unnecessary and burdensome penalty fees.

The bank will revise its indicative profit rates from time to time, so be sure you keep yourself updated.

Type of vehiclesProfit rates
NationalFrom 3.00% p.a. to 3.60% p.a.
Non-nationalFrom 2.90% p.a. to 3.35% p.a.

Note: Indicative profit rates with effect from May 2017

What if I fail to service my monthly repayments?

You will be charged 1% per year on overdue installments, also called Ta'widh (compensation). If you think you're going to be late with a payment call the bank and let them know.

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.

And if I choose to pay off my auto financing earlier?

Yes you can pay off your car loan in full whenever you like. As a gift for your tenacity in paying off your debts you'll get a rebate on the remaining financing period.

What documents do I need when applying for this car loan?

Here are the things you need:

  • 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.

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