What is this product about?
This is an Islamic Hire Purchase based on the Shariah concept of Ijarah Thumma Al-Bai' ( AITAB), i.e. a leasing agreement that will followed by a sale contract upon facility full settlement. A hire purchase is basically an instalment plan for the acquisition of an asset.
What can I get from Bank Rakyat Auto Hire Purchase Financing-i?
With Bank Rakyat Auto Hire Purchase Financing-i (also known as An Naqlu 1), you can buy the car of your dream for personal use at flat profit rates as follows:
|Proton & Perodua||3.05% - 3.20%|
|Non-National||2.80% - 2.90%|
This profit rate is fixed throughout your period of borrowing, which is in this case can be extended for up to 9 years. Bank Rakyat may part-finance the purchase of your car to a maximum of 90% from on the road (OTR) sales price.
This Auto Hire Purchase Financing-i is also available for the acquisition of used and reconditioned vehicles, however the rate is dependent on the vehicle's market value, which can be slightly higher.
How much this Islamic hire purchase is going to cost me?
Not much, really. You will be charged with a Stamp Duty of RM10 for the Ijarah Agreement, with another RM10 for Guarantor Agreement, if any. Then, there is a small fee of RM15, payable to JPJ, for the issuance of Consent Letter.
How to pay for my monthly instalment?
First off, you monthly instalment payment will consist of a principal amount and profit charge, which will be reduced every month until the hire purchase is fully settled. You are advised to make a prompt and full payment to avoid a late payment charge of 1% p.a. on the overdue instalment amount.
There are many ways you can perform you instalment payment to Bank Rakyat:
- Salary deduction via Biro Perkhidmatan Angkasa or by Employer (private sector)
- Cash via over-the-counter, CDM or cheque deposit
- Standing Instruction from online banking account
- Savings Account deduction
- Post Dated Cheque
Do I need a Takaful coverage?
It is compulsory to have a motor Takaful insurance coverage before you can operate your vehicle on the road - otherwise you will be in deep trouble with the authorities. You can always avail to Bank Rakyat's panel Takaful companies to get one.
However, all costs related to signing up a car insurance / Takaful plan will be assumed solely by you, not the financier.
Who can apply and what documents that are need to be prepared?
All Malaysian citizens aged between 18 years to 60 years can apply for Bank Rakyat car financing facility, as long as you have a minimum income of RM1,500 every month and have served for at least 6 months in a company.
Before making your way to Bank Rakyat branch, please prepare these documents:
- 1 Copy of MyKad
- 1 Copy of Driving License
- 1 Copy of Latest 3-months Salary Slip
- Statement of Account Transactions
- Confirmation Letter from Employer