Am I eligible for Bank Islam Vehicle Financing-i?
If you happen to be a Malaysian aged between 18 and 60 years and you earn a fixed, stable, 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 Bai Baithaman Ajil ( BBA) contract 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. You will be able to finance both local and foreign cars.
What if I fail to service my monthly repayments?
You will be charged 1% per year on overdue installments, also called Ta'widt (compensation). If for some reason you are unable to pay for two consecutive months your vehicle will be repossessed by the bank as stated in the Hire Purchase Act 1967. If you think you're going to be late with a payment call the bank and let them know.
And if I choose to pay off my debts 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:
Photocopy of Identity Card (front and back)
Photocopy of valid driving licence
Photocopy of latest 3 months’ salary statements; 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