Affin Bank car loan refers to a financing solution for purchasing new or used vehicles in Malaysia. The bank offers conventional hire purchase and Islamic Vehicle Financing-i (AITAB) options. These loans allow borrowers to repay the vehicle cost in fixed monthly installments over a tenure of up to 9 years.
Affin Bank provides financing up to 90% for new cars and 85% for used cars. The bank structures loans with competitive fixed or variable interest rates, depending on the product. Shariah-compliant Vehicle Financing-i follows the Al Ijarah Thumma Al Bai (AITAB) concept, which includes profit rates instead of interest.
Affin Bank Car Loan Rates and aApplication
What Are Affin Bank Car Loan Rates in 2025?
Affin Bank’s conventional hire purchase loans in 2025 offer flat interest rates starting from 2.6% per annum for new foreign-manufactured vehicles and around 2.92% per annum for new local vehicles, while used cars are generally financed at about 3.0% per annum. These loans use the flat rate calculation method, where the interest portion of the instalment remains the same throughout the loan tenure.
For Islamic financing, Affin Islamic’s Vehicle Financing-i is based on the Shariah concept of Al Ijarah Thumma Al Bai (AITAB) and applies a reducing balance method. This means the profit charges decrease over time as repayments are made, allowing borrowers to save on total costs if they make early or extra payments. Late payments on both conventional and Islamic facilities attract a penalty of 8% per annum, calculated daily on the overdue amount. This makes timely repayment essential to avoid additional charges.
How Does Affin Bank Determine Loan Eligibility?
Affin Bank requires applicants to meet minimum income and age criteria. Malaysians and permanent residents aged 18 and above qualify, with a minimum annual income of RM24,000. Self-employed applicants must provide business registration documents and 6 months of bank statements.
The bank assesses creditworthiness using credit scores and debt-to-income ratios. A strong credit history improves approval chances. Applicants with existing loans must declare obligations, as Affin Bank reviews total financial commitments before approval.
What Documents Are Needed for an Affin Bank Car Loan?
Salaried individuals must submit NRIC, driving license, and income proof. This includes 3 months’ payslips (without overtime) or 6 months’ payslips (with overtime). Commission earners provide 6 months of commission statements and EA forms.
Self-employed applicants submit business certificates and financial records. Required documents include Borang B, tax receipts, and 6 months of bank statements. Private companies must provide incorporation certificates and audited financial reports.
What Is the Application Process for Affin Bank Car Loans?
Applicants can apply online or at Affin Bank branches. The online process involves filling a form on the bank’s website, uploading documents, and awaiting a callback. Branch applications require physical submission of documents.
Approval typically takes 1 to 3 working days after document verification. Once approved, the bank disburses funds directly to the car dealer. Borrowers start repayments the following month via channels like internet banking, ATMs, or standing instructions.
Does Affin Bank Offer Early Settlement or Refinancing?
Affin Bank allows early loan settlement with rebates on unearned interest. Conventional loans provide statutory rebates, while Islamic financing adjusts profit charges based on remaining tenure. No early settlement fees apply.
Refinancing is available for existing car loans. Borrowers can switch to Affin Bank for better rates, subject to eligibility. The bank evaluates the current loan balance and vehicle value before approval.
What Insurance Is Required for Affin Bank Car Loans?
Motor insurance or takaful is mandatory for all financed vehicles. Comprehensive coverage protects against accidents, theft, and third-party liabilities. Optional add-ons like AXA GAP insurance cover invoice price gaps in total loss cases.
Affin Bank partners with insurers for bundled packages. Borrowers can choose HP Life coverage, which settles outstanding loans in case of death or permanent disability.
What Happens If a Borrower Defaults on Payments?
Late payments incur an 8% annual penalty on overdue amounts. Persistent defaults lead to repossession under the Hire Purchase Act 1967. The bank may reclaim the vehicle after 2 months of missed payments.
Affin Bank assists borrowers facing financial hardship. Options include restructuring payment plans, though terms depend on individual circumstances. Proactive communication with the bank improves resolution chances.
How Does Affin Bank Compare to Other Lenders?
Affin Bank’s rates are competitive, especially for Islamic financing. For example, Maybank’s conventional hire purchase starts at 3.4%, while Bank Rakyat’s profit rates begin at 3.3%. Affin’s 2.6% rate for foreign new cars under Vehicle Financing-i is among the lowest.
The bank’s 90% financing margin matches industry standards. RHB and CIMB offer similar margins, but Affin’s flexible tenure (up to 9 years) provides longer repayment periods than some competitors.
Are There Special Promotions for Affin Bank Car Loans?
Affin Bank occasionally offers reduced rates for specific car models. Promotions may include waived processing fees or cashback for early approvals. Borrowers should check the bank’s website or dealership partnerships for current deals.
Government employees and GLC staff may qualify for preferential rates. These are subject to verification of employment status and income.