RHB car loan rates and application refer to financing solutions offered by RHB Bank for vehicle purchases in Malaysia. The bank provides conventional hire purchase rates starting from 3.28% p.a. and Islamic financing options under the Vehicle Financing-i (Variable Rate) scheme. Loan tenures extend up to 9 years, with financing margins reaching 90% for new cars. The application process requires documentation such as salary slips, identification copies, and proof of income, varying by employment type.
RHB Car Loan Rates and Application
What Are the Current RHB Car Loan Rates?
RHB car loan rates depend on the vehicle type, loan tenure, and financing package. For conventional hire purchase, interest rates start at 3.28% p.a., while Islamic financing under Vehicle Financing-i ranges from 2.8% to 3.18% p.a., depending on the car model and borrower’s credit profile. Electric vehicles (EVs) like Tesla qualify for promotional rates as low as 1.99% p.a. during campaign periods. Foreign-branded cars typically have slightly lower rates compared to local models.
The bank adjusts rates based on the Standardised Base Rate (SBR), which stood at 2.75% as of July 2025. Borrowers can reduce effective interest costs by opting for shorter tenures or larger down payments. For example, a RM100,000 loan over 5 years at 3.18% p.a. accrues approximately RM8,900 in total interest.
How Does RHB Islamic Vehicle Financing-i Work?
RHB Vehicle Financing-i operates on the Al-Ijarah Thumma Al-Bai (AITAB) principle, a Sharia-compliant lease-to-own structure. The bank purchases the vehicle and leases it to the customer, with ownership transferring after full repayment. Profit rates are calculated using the reducing balance method, lowering charges as the principal decreases. Key features include flexible redraw options for excess payments and no early settlement penalties.
The Flexi Redraw variant allows borrowers to withdraw overpayments, with a minimum redraw amount of RM2,000. For instance, a customer who overpays RM5,000 can later access these funds for emergencies. This product requires a minimum financing amount of RM80,000 and covers new, unregistered reconditioned, and used vehicles up to 24 months old.
What Is the Maximum Loan Tenure and Financing Margin?
RHB offers loan tenures up to 9 years (108 months) for both conventional and Islamic financing. The maximum financing margin is 90% for new cars, requiring a 10% down payment. Used cars may qualify for lower margins, typically 70–80%, depending on age and condition. For example, a RM150,000 new car with 90% financing leaves a RM15,000 down payment.
Special programs like the Green Financing Rate for hybrid/EVs provide up to RM500,000 financing at competitive rates. The Volvo Car Finance Package offers fixed rates from 2.00% p.a. with similar tenure and margin flexibility.
What Documents Are Required for RHB Car Loan Applications?
Salaried employees must submit copies of their MyKad, driving license, and either 1 month’s salary slip (for government/GLC roles) or 3 months’ slips with bank statements (private sector). Self-employed applicants need 6 months’ bank statements or Form B/BE tax returns, alongside business registration documents.
Business applicants (sole proprietorships, Sdn Bhds) must provide Form 24/49, financial reports, and 6 months’ company bank statements. Guarantors are mandatory for borrowers under 21 or over 60 years old, non-Malaysians, or those with insufficient income.
How Does the RHB Car Loan Approval Process Work?
RHB’s approval process begins with online or branch applications, with instant conditional approval available for eligible candidates. Final approval depends on credit score, debt-to-income ratio (DTI), and vehicle valuation. The bank disburses loans directly to dealers upon approval, typically within 3–5 working days.
Borrowers can track applications via RHB Internet Banking or customer service. The bank’s approval rate improves with strong credit histories (scores above 700) and stable income. For example, a borrower earning RM5,000 monthly with a DTI below 60% has higher approval odds.
Are There Penalties for Late Payments or Early Settlement?
Late payments incur a 1% p.a. penalty on overdue amounts under Islamic financing (Ta’widh). Conventional loans may charge similar fees. Early settlement is allowed without exit fees for Vehicle Financing-i, though conventional loans may impose 2–3% of the outstanding balance.
Borrowers can calculate early settlement amounts using RHB’s loan calculator or request a redemption statement. For a RM80,000 loan settled 2 years early, savings may reach RM4,000 in avoided interest.
What Additional Benefits Does RHB Offer?
RHB provides complimentary insurance packages like Hire Purchase Reducing Term Takaful (HPRTT), covering outstanding balances in case of death or disability. Campaign perks include RM50 petrol vouchers for online applicants and Tesla Wall Connectors for EV financing.
The bank’s loan calculator helps estimate monthly installments, with a RM98,820 loan at 3.4% p.a. over 9 years costing RM1,195/month. Multiple repayment channels include GIRO, ATM, and online banking.
How Does RHB Compare to Other Banks?
RHB’s rates are competitive, with conventional loans at 3.18% p.a. versus Maybank’s 3.4% and CIMB’s 3.75%. Islamic options undercut Public Bank’s 3.31% for similar tenures. However, BSN offers lower rates (2.35% p.a.) for national cars.
The Flexi Redraw feature distinguishes RHB from rigid competitors. For used cars, CARSOME partnerships provide rates from 2.88% p.a., undercutting most rivals.