Car Loan (Hire Purchase)
Transport
A car loan in Malaysia is usually a hire purchase facility, where a bank finances the vehicle and you repay in fixed monthly instalments over a tenure of up to nine years. Interest is often quoted as a flat rate on the original amount, which differs from the effective rate. Buyers typically pay a down payment, and the bank holds security over the car until the loan is fully settled. Approval depends on income, commitments, and credit record. Missing payments can lead to repossession. Rates, maximum tenure, and financing margins vary by lender and are subject to the latest rules.