RHB Hire Purchase: Your Guide to Car Financing

Purchasing a vehicle is a significant milestone for many, and in Malaysia, hire purchase (HP) is a widely adopted method for vehicle acquisition. RHB Bank, a prominent financial institution in Malaysia, offers a robust hire purchase program designed to make car ownership accessible and straightforward. This article delves into the specifics of RHB Bank's car financing solutions, covering their conventional hire purchase and Shariah-compliant hire purchase-i options.

Understanding Hire Purchase in Malaysia

Before diving into RHB's offerings, it's essential to grasp the concept of hire purchase. In simple terms, hire purchase is an arrangement where you hire goods (in this case, a car) for a specified period, with the option to buy them outright at the end of the term. During the hire period, you, as the hirer, possess and use the vehicle while making regular repayments to the financier, who remains the legal owner until all instalments are settled. Once the final payment is made, ownership is transferred to you.

RHB Bank's Conventional Hire Purchase Program

RHB Bank's conventional hire purchase package is tailored for individuals seeking to finance their vehicle purchase. This program is recognised for its efficiency and customer-centric features:

Fast Approval Process

One of the standout features of RHB's hire purchase program is its fast approval process. This aims to minimise the administrative burden and expedite the journey from application to driving away in your new car. This efficiency is crucial for those eager to secure their vehicle without unnecessary delays.

High Margin of Financing

RHB Bank offers a competitive margin of financing, potentially up to 90% of the vehicle's value. This substantial financing margin allows customers to acquire their desired vehicle with a relatively lower upfront down payment, making dream cars more attainable.

Flexible Financing Period

Understanding that financial flexibility is key, RHB provides a generous financing tenure of up to 108 months (9 years). This extended repayment period allows borrowers to structure their monthly payments to align comfortably with their budget, ensuring manageable financial commitments.

Convenient Repayment Channels

RHB Bank ensures that making monthly repayments is a hassle-free experience. Customers have a variety of convenient channels to choose from:

• RHB Internet Banking
• Interbank GIRO
• Standing Instruction facility
• Automated Teller Machine (ATM)
• Cash Deposit Machine (CDM)
• Over 210 RHB Bank branches nationwide

This wide array of payment options caters to diverse customer preferences and accessibility needs.

Comprehensive Auto Insurance

To provide complete peace of mind, RHB Bank's hire purchase program often includes or facilitates comprehensive auto insurance. This insurance coverage protects against unforeseen events, ensuring that owning your dream car is a secure and enjoyable experience without the added worry of potential financial burdens arising from accidents or damage.

RHB Bank's Shariah-Compliant Hire Purchase-i Program

For customers who prefer Shariah-compliant financial solutions, RHB Bank offers the Hire Purchase-i program. This Islamic finance product adheres to Shariah principles while providing attractive benefits:

Principal Reduction

A key advantage of the Hire Purchase-i program is the facility for principal reduction. This allows customers to make additional payments towards the principal amount of the financing, effectively reducing the overall outstanding balance and potentially lowering future profit charges.

Daily Rest Balance Reduction

The program incorporates a daily rest balance reduction feature. This means that any additional payments made are applied to the principal on a daily basis, leading to greater savings on profit charges over the tenure of the financing. This feature enhances the cost-effectiveness of the Shariah-compliant option.

Competitive Rates

RHB Bank's Hire Purchase-i program is known for its competitive rates. Whether you are looking to purchase a new, used, or reconditioned vehicle, the program aims to offer lower monthly financing plans, making it an attractive option for budget-conscious buyers.

No Penalty for Early Settlement

A significant benefit for those who wish to settle their financing early is the absence of any penalty fees. RHB Bank's Hire Purchase-i program allows customers to clear their outstanding balance without incurring exit fees, offering complete flexibility and control over their financial commitments.

Flexible Tenure

Similar to the conventional program, the Hire Purchase-i option provides a flexible tenure, extending up to 9 years. This allows customers to choose a repayment period that best suits their financial capacity and long-term planning.

Is RHB Bank a Good Choice for Car Financing?

RHB Bank is indeed a reputable local bank in Malaysia permitted to offer personal hire purchase services. Their competitive hire purchase packages, combined with a focus on customer convenience through fast approvals, flexible repayment options, and Shariah-compliant solutions, make them a strong contender for car financing. Whether you opt for the conventional hire purchase or the Hire Purchase-i program, RHB Bank strives to facilitate your journey towards vehicle ownership.

Checking Your Car Loan Balance at RHB Bank

For existing RHB Bank car loan customers, checking your outstanding balance is straightforward. You can typically do this through several channels:

• RHB Online Banking: Log in to your RHB online banking portal to view your loan details, including the outstanding balance.
• RHB Mobile Banking App: Similar to online banking, the mobile app provides convenient access to your account information.
• Contact Centre: You can call the RHB Customer Contact Centre at 603-9206 8118 to inquire about your loan balance.
• Visit a Branch: Visit any RHB Bank branch nationwide and speak to a customer service representative.

It's always advisable to keep track of your loan balance to manage your finances effectively.

RHB Bank Contact Information

Should you require further information or wish to apply for a car loan, RHB Bank can be reached through the following:

Head Office:

Tower Two & Three
RHB Centre
Jalan Tun Razak
50400 Kuala Lumpur
Tel: +60 3 9287 8888
Fax: +60 3 9287 9000
Website: www.rhb.com.my

Contact Center:

Tel: 603-9206 8118
Email: [email protected]

RHB Bank's commitment to providing accessible and flexible car financing solutions, backed by a strong network and customer service, positions them as a reliable partner for aspiring car owners in Malaysia.