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.

Bank Islam Vehicle Financing-iEarly Settlement Rebate
up to 9 years
Loan Type
Fixed Islamic loan
Profit Type
Margin of finance
Up to 90%
Excess Repayment
Not applicable
Early Settlement Rebate

Profit rates

How much the bank charges you based on your loan amount & loan period

ConditionMaximum YearsMargin of FinanceInterest rate
New9 years90%2.35% p.a.
New9 years90%3.3% p.a.

Fees & Charges

Profit Rate for New Cars
from 2.2% p.a. to 3.3% p.a., depending on car brand, borrowing amount, and period
Stamp Duty
Early Settlement Fee
 subject to terms of agreement with bank
Late Penalty Fee
1%  p.a. of the outstanding amount


Minimum Annual Income
Minimum Age
  • 18 to 60 years old
Who can apply
  • Malaysians
  • Salaried employee

More Information

Am I eligible for Bank Islam Vehicle Financing-i?

If you are a Malaysian individual aged between 18 and 60 years old and earn a fixed income, Bank Islam will certainly consider your application. The credit approval rule of thumb around these parts 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 the 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 2.35% p.a. to 3.30% p.a.
Non-national and Unregistered ReconditionedFrom 2.20% p.a. to 2.40% p.a.
Hybrid and Electrical Vehicle (HEV)From 2.10% p.a. to 2.20% p.a.

Note: Profit is calculated on a monthly basis on the "Sum of Digit" method.

What if I fail to service my monthly repayments?

You will be charged 1% per year on overdue instalments, 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 for.

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 the latest 3-months Bank Statements (salary crediting account); or
  • Latest EPF statements/EA Forms
  • Other supporting documents as may be 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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