Whether you are buying a new or second hand car, applying for a loan is quite simple in Malaysia. If you are a first time car buyer, this is usually classified as hire purchase loan.
Most banks provide hire purchase loans
In Malaysia, most commercial banks offer hire purchase loans. This includes the likes of:
- CIMB Bank
- AM Bank
- And many others.
Fast processing time
Most bank takes a few days to complete the process. When you buy a car, the salesman will try to take care of everything for you. This means that they will obtain the documents from you and then send it to the bank. Documents that you will need include:
- Your IC
- 3 months pay slip
- EA form
- Income tax statement.
Take note that this is applicable only for private cars and if you are buying for commercial purposes, the procedures would be different.
What to expect from loan officer?
A few days after you have submitted your documents, the loan officer will be calling you and you can expect some questions like:
- Your employer’s name, office telephone number
- Do you rent or own the place you are staying now
- Your monthly salary and how old your children are (if any)
- Duration of Loan approval
Once the verification process is completed, the loan officer might call your employer to determine that you are providing accurate information and that you have a sound income. Then, you will be informed in about 3 days whether the loan is approved.
If you are loan is approved, the bank will inform the salesman and the amount is transferred between them. After that, you will be given the information about your loan and you can then drive your new car home.