Bank Rakyat Vehicle Financing‑i refers to Shariah-compliant auto financing solutions offered by Bank Rakyat Malaysia. These financing options adhere to Islamic principles, primarily using two contracts—AITAB (Al-Ijarah Thumma Al-Bai) for hire-purchase agreements and Tawarruq for commodity-based financing. The bank provides competitive profit rates, flexible tenures up to 9 years, and financing margins as high as 90-100% of the vehicle’s on-the-road (OTR) price.
Bank Rakyat’s financing caters to both new and used vehicles, including unregistered reconditioned cars. Key features include fixed profit rates, structured repayment plans, and mandatory motor Takaful coverage. For example, the An Naqlu 1 scheme under AITAB offers financing up to 90% for local and imported vehicles, while An Naqlu 2 under Tawarruq allows 100% financing for national cars.
What Are the Current Bank Rakyat Car Loan Rates?
Bank Rakyat car loan rates vary by vehicle type, financing scheme, and tenure. For An Naqlu 1 (AITAB), rates range from 3.05% to 3.2% p.a. for local new cars and 2.8% to 2.9% p.a. for foreign vehicles. The An Naqlu 2 (Tawarruq) scheme charges 3.3% p.a. for national cars, with graduate-specific programs like An Naqlu 2 Graduate Scheme offering tailored rates for diploma holders.
Used cars and reconditioned vehicles typically incur higher rates, such as 3.05% p.a. for local models. Bank Rakyat adjusts rates based on loan tenure—shorter terms (5 years) often have lower rates than extended ones (9 years). Late payment penalties apply at 1% p.a. on overdue amounts, while early settlements may qualify for rebates.
Bank Rakyat Car Loan Rates and Application
How Does Bank Rakyat’s AITAB Financing Work?
AITAB financing operates as a two-phase contract combining leasing (Ijarah) and eventual sale (Bai). Customers lease the vehicle from Bank Rakyat during the financing period, with ownership transferring after full repayment. Key terms include a maximum 90% financing margin, fixed profit rates, and compulsory Takaful coverage.
For example, a customer financing a RM100,000 car under AITAB pays monthly installments calculated on the agreed profit rate. The bank retains vehicle ownership until the final payment, after which the customer gains full title. Stamp duty fees of RM10 and JPJ processing charges (RM15 per document) apply.
What Are the Eligibility Criteria for Bank Rakyat Car Loans?
Applicants must be Malaysian citizens aged 18–60 with a minimum monthly income of RM1,500 (RM2,000 for graduate schemes). Salaried employees need proof of employment (3 months’ payslips), while private-sector workers submit EPF statements. Required documents include MyKad, driving license, and bank statements.
The bank evaluates creditworthiness using debt-to-income ratios and credit scores. Public-sector employees often qualify for preferential terms, while self-employed applicants provide additional financial proofs. For the An Naqlu 2 Graduate Scheme, diploma holders aged 20–30 gain access to 100% financing with RM2,000 minimum income.
What Is the Application Process for Bank Rakyat Vehicle Financing?
Applications begin with document submission at Bank Rakyat branches or via online platforms like BRICK (Bank Rakyat Quick). The bank verifies income, credit history, and vehicle details before approval, typically within 3–5 working days. Customers choose repayment methods like salary deduction (BPA/PGM) or electronic transfers.
After approval, funds are disbursed directly to the dealer. Processing fees include lawyer fees (RM150–RM300) and Wakalah agency fees (RM28.30). Customers must attend signing sessions for the loan agreement and Takaful enrollment.
What Fees and Charges Apply to Bank Rakyat Car Loans?
Bank Rakyat imposes one-time fees like stamp duty (RM10), JPJ consent letters (RM15), and Wakalah charges. Late payments incur 1% p.a. penalties, while early settlements avoid fees but may qualify for rebates. Takaful premiums are separate and vary by coverage type.
For An Naqlu 2, nominal lawyer fees (RM150–RM300) apply. Foreign vehicle financing includes additional documentation costs. The bank discloses all charges upfront in the loan agreement to ensure transparency.
How Does Bank Rakyat Compare to Other Islamic Auto Financing Providers?
Bank Rakyat’s rates are competitive against peers like Bank Islam (2.5–3.3% p.a.) and Maybank Islamic (3.4% p.a.). Its AITAB and Tawarruq options provide flexibility lacking in conventional loans, though terms vary by vehicle type. For example, Bank Islam’s Murabahah financing offers lower rates for EVs (2.1% p.a.), while Bank Rakyat focuses on broader accessibility.
The bank’s graduate and senior citizen schemes (e.g., Warga Emas) offer niche advantages. However, applicants should compare tenures and margins—Bank Rakyat’s 9-year terms suit long-term borrowers, while others like CIMB Islamic cap at 7 years.
What Are the Repayment Options for Bank Rakyat Car Loans?
Repayment methods include salary deductions (BPA/PGM), electronic transfers, and post-dated cheques. Monthly installments combine principal and profit portions, with amounts fixed for the loan tenure. Customers can use standing instructions via Bank Rakyat’s online banking.
Early repayments reduce total interest but require notification. Partial prepayments are allowed without penalties, while full settlements may trigger rebates. The bank provides repayment schedules detailing principal reductions over time.
What Additional Services Support Bank Rakyat Car Loan Customers?
Bank Rakyat offers Takaful partnerships (e.g., Takaful Amani) and mobile app tools for installment tracking. Its Tele-Rakyat hotline (1-300-80-5454) handles queries on late payments or document submissions. Branches provide face-to-face consultations for complex cases.
The bank’s financial literacy initiatives explain profit calculations and loan terms. Customers can access e-statements and payment reminders via iRakyat online banking.