Malaysia’s Most Trusted Car Loan Comparison
Drive Your Dream Car
Compare hire purchase rates from every major Malaysian bank.
Updated May 2026 · Verified from bank sources.
2.55%Lowest Rate
8Banks Compared
90%Max Financing
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✓ Rates verified from bank sources · May 2026
Best car loan rate in Malaysia 2026: Hong Leong Bank at 2.80% p.a. flat (EIR ~5.26%) — open to all Malaysians. Lowest overall: Bank Rakyat MyAuto-i at 2.55% flat (EIR ~4.80%) for eligible Islamic borrowers. All Malaysian car loans use flat rates — the true annual cost (EIR) is approximately 1.85× the advertised rate.
Best Major Bank
2.80% flat
Hong Leong Bank
True Cost (EIR)
~5.26%
on 2.80% flat, 7 yrs
Down Payment
10% min.
New car, 90% financing
🚗 Car Loan Rates — Malaysia 2026
New local car, 90% financing over 7 years. Source: bank websites + LoanStreet.com.my, May 2026.
⚠ Flat rate ≠ true cost. A 2.80% flat rate = ~5.26% EIR. Always compare using EIR — the actual annual cost of borrowing. Use our EIR Calculator.
| Bank | Product | Flat Rate | True EIR | Best For |
|---|---|---|---|---|
| Bank Rakyat | MyAuto-i | 2.55%LOWEST | ~4.80% | Islamic, eligible Muslims |
| Hong Leong Bank | Auto Loan Fixed Rate | 2.80% | ~5.26% | Best open-to-all rate |
| Bank Muamalat | AITAB Hire Purchase-i | 2.84% | ~5.33% | Islamic financing |
| Maybank | EzyAuto / EzyAuto-i | 2.90% | ~5.45% | Conv. or Islamic |
| Public Bank | Hire Purchase | 3.20% | ~6.00% | Salaried employees |
| CIMB Bank | Auto Financing | 3.20% | ~6.00% | Salaried employees |
| RHB Bank | Hire Purchase / HP-i | 3.40% | ~6.37% | Conv. or Islamic |
| Affin Bank | Hire Purchase | 3.50% | ~6.56% | Negotiable rate |
EIR calculated for 7-year tenure. Rates are flat rates on the original loan amount under the Hire Purchase Act 1967.
What You Need to Know
Flat rate vs EIR: Car loan rates in Malaysia are quoted as flat rates — interest is charged on the full original loan every month, not on the reducing balance. A 2.90% flat rate over 7 years equals ~5.45% EIR (the true annual cost). Never compare a car loan flat rate directly to a home loan rate.
Islamic vs Conventional: Islamic AITAB hire purchase entitles you to an ibra’ rebate on early settlement. Conventional hire purchase uses the Rule of 78, front-loading interest. For most borrowers, Islamic HP offers better early settlement terms.
Approval basics: Minimum 10% down payment for new cars. Banks assess your DSR (Debt Service Ratio) — total monthly repayments must stay below 60–70% of net monthly income. Most banks require 3–6 months confirmed employment. A clean CCRIS/CTOS history is essential.
Frequently Asked Questions
The best car loan rate open to all Malaysians is Hong Leong Bank at 2.80% p.a. flat (EIR ~5.26%). The absolute lowest is Bank Rakyat MyAuto-i at 2.55% flat (EIR ~4.80%) — Islamic financing, eligible for Malaysian Muslims. Always compare using EIR, not the flat rate.
EIR (Effective Interest Rate) is the true annual cost of a car loan. Car loans charge flat rate interest on the full original amount every month — even after you’ve repaid half the loan. A 2.80% flat rate over 7 years = ~5.26% EIR. On an RM 80,000 loan, choosing 2.80% over 3.40% saves about RM 4,560 in total interest over 7 years.
Minimum 10% of the OTR (on-the-road) price for new cars — banks finance up to 90%. For used cars, expect 15–30% down depending on vehicle age and bank. A lower down payment means a larger loan and more total interest paid.
For most borrowers, Islamic AITAB is better. Early settlement gives you an ibra’ rebate — you only pay for the months you used the financing. Conventional HP uses Rule of 78, front-loading interest so early settlement saves you less. Rates are comparable. Bank Rakyat and Bank Muamalat offer the best Islamic car loan rates.
Salaried: MyKad, 3 months payslips, 3 months bank statements, EPF statement (Form 6 or i-Akaun), employment confirmation letter, car dealer proforma invoice. Self-employed: MyKad, BE form (income tax return), 6 months business bank statements, SSM registration, car proforma. Government servants: JANM salary slip accepted.
Most banks publish fixed rates that are not negotiable. Affin Bank is the most open to rate negotiation. Hong Leong and Maybank run seasonal promotional rates (especially around major holidays) that can be lower than their standard published rates — worth checking at time of application.
Rates sourced from LoanStreet.com.my and bank websites, May 2026. Rates are indicative — actual rate depends on your credit profile, DSR, and the bank’s offer at time of application. rates.my is a comparison platform, not a financial adviser.