Car Loan Malaysia 2026 — Interest Rates, Banks & What to Expect
Buying a car in Malaysia? Here's what you need to know about car loan rates, eligibility, and the insurance you'll need.
Car Loan Interest Rates 2026
| Bank | New Car Rate (p.a.) | Used Car Rate (p.a.) | Max Tenure |
|---|---|---|---|
| Maybank | 2.4–3.0% | 3.0–4.0% | 9 years |
| CIMB Bank | 2.5–3.2% | 3.2–4.2% | 9 years |
| RHB Bank | 2.6–3.3% | 3.3–4.3% | 9 years |
| Public Bank | 2.5–3.1% | 3.1–4.1% | 9 years |
| Bank Islam | 2.6–3.4% | 3.4–4.5% | 9 years |
| HLBB (Hong Leong) | 2.5–3.2% | 3.2–4.2% | 9 years |
Flat rates. Actual rate depends on credit score, income, loan amount, and promotional packages. Verify with the bank before applying.
Monthly Installment Calculator (Estimates)
Based on 2.8% p.a. flat rate:
| Loan Amount | 5-Year Monthly | 7-Year Monthly | 9-Year Monthly |
|---|---|---|---|
| RM30,000 | ~RM570 | ~RM430 | ~RM357 |
| RM50,000 | ~RM950 | ~RM717 | ~RM595 |
| RM80,000 | ~RM1,520 | ~RM1,147 | ~RM952 |
| RM100,000 | ~RM1,900 | ~RM1,433 | ~RM1,190 |
| RM150,000 | ~RM2,850 | ~RM2,150 | ~RM1,785 |
Estimates only. Use your bank's loan calculator for accurate figures.
Car Loan Eligibility
Car Insurance When You Have a Loan
Add bank as interested party
Tell your insurer to note the bank (e.g., 'Maybank Berhad' or 'CIMB Bank Berhad') as the 'interested party' on the policy. In a total loss, the insurance payout goes to the bank first to settle the loan balance.
Comprehensive cover is mandatory
Third party insurance is not sufficient when you have a bank loan. The bank requires comprehensive cover protecting against own damage, fire, and theft.
Can I choose my own insurer?
Yes. You are not required to buy insurance through the car dealer or bank. You can shop for the best price on Bjak or any insurer — just make sure to add the bank as interested party.
After loan is fully paid
Once you've settled the loan, you can inform your insurer to remove the bank as interested party. You can also consider switching from comprehensive to third party fire & theft if the car is old enough.
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FAQs
What is the car loan interest rate in Malaysia?
New car loans: 2.4–3.5% p.a. flat rate depending on bank and credit profile. Used cars: 3.0–4.5% p.a. Islamic financing (hire purchase) uses similar effective rates.
How much car loan can I get?
Typically up to 90% of OTR price for new cars, 70–85% for used. Your monthly installment should not exceed 1/3 of gross monthly income. The bank calculates your Debt Service Ratio (DSR) based on all existing debts.
Do I need comprehensive insurance if I have a car loan?
Yes. Banks require comprehensive insurance as a loan condition. The car is their collateral. You can choose any insurer — compare on Bjak for the best price — but you must add the bank as 'interested party' on the policy.
Can I get a car loan with bad credit?
It's harder but not impossible. You may need a higher down payment (20–30%), a guarantor, or accept a higher interest rate. Some finance companies specialise in loans for buyers with imperfect credit histories.