The minimum deposit that you can make is 10% of the cash value of the motor vehicle. However, the banking institution can request for
a higher deposit.
Term charges (interest rate)
You may choose your financing to be based on either fixed or variable rates.The maximum rate allowed under fixed rate financing is 10%. For variable rate financing, term charges will be quoted at a margin above the base lending rate of the banking institution concerned.
Late payment charges
A penalty is imposed on overdue instalments with its interest charged on a daily basis. For fixed rate financing, the maximum charge allowed is 8% while for variable rate financing, it is 2% above the prevailing term charges for variable rate.
Based on the credit assessment made on you, the banking institution may require a guarantor as additional security to support your application. In the event that the hirer defaults on payments, the guarantor is responsible for the unpaid portion of the HP facility including interest.
It is your responsibility as the hirer to purchase insurance cover for your motor vehicle other than for the first year. The banking institution normally requires a comprehensive insurance policy/takaful plan to be taken on the motor vehicle. You may check the market value of your vehicle to determine the sum insured for the motor insurance / takaful from www.carprices.com.my.
This occurs when the hirer defaults in repayments and the owner takes possession of the motor vehicle. Generally, the banking institution that facilitates your HP agreement will engage a registered repossessor to repossess any motor vehicle.
To ease your banking procedures, use the following checklist to identify the relevant documents needed for banking procedures and applications. The exact documents required may differ among banking institutions. Do check with your banking institution to confirm what documents are needed before applying.
Photocopy of your identity card / passport
Photocopy of your driving licence
Photocopy of your most recent income tax return (J Form)
Photocopies of your most recent salary slips/statements
Photocopies of your most recent bank statements (If self-employed)