Islamic Car Financing Rates in Malaysia (2026): Seven Lenders Compared

Only two of the seven lenders Malaysians ask about print a full Islamic car financing rate card today. Bank Islam publishes a grid for its Murabahah-based Vehicle Financing-i (new national cars from 2.35% to 3.15% a year, new hybrids and EVs from 2.10% to 2.20%, used cars from 3.65%), and CIMB Islamic publishes indicative effective profit rates for Hire Purchase-i (6.75% for a new national car, 5.10% for a new foreign car). Maybank Islamic, Hong Leong Islamic, Public Islamic and Affin Islamic publish contract, margin and tenure but quote the rate at the dealer or branch. AEON Bank does not offer car financing at all; the AEON product is from AEON Credit Service, at 3.99% to 9.95%. The Islamic car financing hub keeps the lender list current; this article reads the rate cards.

Why a 2.35% rate and a 6.75% rate can be the same price

Malaysian car financing has historically been quoted as a flat rate: a percentage of the original amount financed, charged every year of the tenure, with the total profit added up front and spread over the instalments under the Rule of 78. A 3.00% flat rate over nine years is not 3.00% a year on what you owe; because the balance falls while the charge does not, the true cost is far higher. CIMB's own explanation of its method change, for applications approved from 2 July 2026, puts a number on it: on RM50,000 over 108 months, a 3.00% flat rate under the Rule of 78 and a 5.50% effective profit rate on a reducing balance produce the same RM588 instalment and the same RM13,500 total profit.

That is why the rate cards below are not directly comparable unless you know which basis each bank is using. Bank Islam's grid states that profit is 'calculated on a monthly basis based on Sum of Digit method', the flat-rate family. CIMB's grid is labelled 'Effective Profit Rate'. The Hire Purchase (Amendment) Act 2026, which our explainer on the amended Act covers in detail, is pushing the market to the reducing-balance method; CIMB adopted a 'Fixed Rate Reducing Balance' method from 2 July 2026. The practical rule: ask every lender for the effective profit rate and the total profit in ringgit on the product disclosure sheet, and compare those two numbers.

Bank Islam Vehicle Financing-i: the only full printed grid

Bank Islam is the one lender whose product page carries a complete, dated grid. Vehicle Financing-i is structured as Murabahah to the Purchase Orderer, not AITAB: the bank buys the car and sells it to you at a fixed, known selling price, which is why the page lists 'Selling price: fixed and known' and 'Ibra' on full settlement of the financing before its maturity' as benefits. Margin is up to 90% of the on-the-road price for national, non-national and unregistered reconditioned cars, and tenure is up to nine years.

Eligibility is tighter than at the AITAB banks: an individual aged 18 and above who will not exceed 60 at the end of the payment period, a Malaysian citizen and a fixed-income earner. Late payment compensation (ta'widh) is 1% a year on overdue instalments before maturity and the prevailing overnight Islamic interbank rate on the outstanding balance after maturity. The page lists a new product disclosure sheet and terms effective 12 October 2026 alongside the November 2025 versions, so re-read the sheet if you apply after that date; the grid may move to the reducing-balance format.

CIMB Islamic Hire Purchase-i: effective rates, fixed and variable

CIMB Islamic runs Hire Purchase-i under AITAB and is the only lender publishing an effective-rate grid. Its auto financing profit rates page carries the figures below, labelled indicative and subject to terms, with the variable option priced against the Base Financing Rate (BFR), which the page records at 6.60% as at 14 July 2025.

Read against the conversion CIMB itself published (3.00% flat is about 5.50% effective over 108 months), a 6.75% effective rate on a new national car is in the same territory as Bank Islam's upper band. The foreign-car rate of 5.10% effective is lower than the national-car rate, the usual pattern in Malaysia because national-car financing amounts are smaller. CIMB's page says promotional rates are available at its Auto Finance Centres, so the printed grid is a ceiling rather than the price you will be offered.

CIMB's reducing-balance page also shows what the method change does to early settlement: settling the RM50,000 example in month 36 costs RM36,307 under the Rule of 78 and RM35,990 under the reducing balance, a saving of RM317. Modest, but in the customer's favour every time.

Maybank, Hong Leong, Public and Affin Islamic: what they publish

Maybank Islamic's AITAB page states the contract, the tenure (up to nine years, 108 months) and the margin: a maximum of 90% of the seller's invoice for new and unregistered reconditioned vehicles, 85% for secondhand passenger cars. It prints no rate. Maybank's hire purchase page on maybank2u describes a fixed-rate option (a flat rate per annum) and a variable-rate option priced as a spread off the BLR or BFR, with no early settlement penalty and the balance due 'less statutory rebate for term charges' on the fixed version.

Hong Leong Islamic's Auto Financing-i page is the best teaching page in the group: it explains that under AITAB 'the Bank will lease the vehicle to you for an agreed period and rental (Instalment)' and that you buy the car on the final instalment. It accepts individuals aged 21 to 70, sole proprietors, partnerships and companies. Its published FAQ gives a margin of up to 90% of the seller's invoice and a tenure of up to 108 months, and says a fixed-rate customer 'is entitled to get rebate on the unexpired term charges' with no early settlement penalty. The rate is not on the page; the product disclosure sheet carries blanks for the profit rate and the annual percentage rate.

Public Islamic Bank's AITAB Hire Purchase-i page says only that financing runs up to nine years and that it offers 'competitive financing rates'. Its English product disclosure sheet carries fields for 'Term Charges % p.a. flat' and 'Effective Financing Rate % p.a.', and the Malay version refers to an effective profit rate on a reducing balance, which suggests the bank is preparing for the amended Act's format. Affin Islamic's Vehicle Financing-i Fixed Rate page names AITAB, promises a 'statutory rebate on the unearned profit' on early settlement, makes motor takaful mandatory and offers optional death and disability takaful, with eligibility from age 18. Rates are in the product disclosure sheet and at the branch, not on the page.

AEON: it is AEON Credit, not AEON Bank

AEON Bank's home page, fetched on 22 September 2026, markets savings, payments, budgeting and zakat tools; it does not list vehicle financing. The AEON car product Malaysians see at dealers is Auto Financing HP-i from AEON Credit Service (M) Berhad, a separate company. Its page is clear on terms: AITAB, up to 90% financing with a minimum 10% down payment, tenure from one to nine years, cars up to 16 years old, governed by the Hire Purchase Act 1967, processing within five working days, and profit rates 'starting 3.99% to 9.95% per annum'. Its product disclosure sheet states instalments are calculated on 'Flat Interest Rates based on Rule 78'.

Those rates are flat, and the upper end is high. AEON Credit's strength is acceptance: age 18 to 65, three months in employment and older used cars. If a bank has declined you, it is an option; if a bank has approved you, the bank will almost always be cheaper. The AEON Bank profile covers AEON's Islamic savings account, which is a different company and a different product.

Murabahah versus AITAB: what changes for you

Two contracts cover the whole market. AITAB (al-ijarah thumma al-bai') is a lease that ends in a sale: the bank owns the car, you pay rental, and ownership transfers on the final instalment. Murabahah to the Purchase Orderer is a sale from the first day: the bank buys the car at your request and sells it to you at cost plus a disclosed profit, payable by instalments, so the car is yours and the debt is a fixed selling price. Bank Islam uses Murabahah; Maybank Islamic, CIMB Islamic, Hong Leong Islamic, Public Islamic, Affin Islamic and AEON Credit use AITAB.

Both fix your instalment on the fixed-rate option and both give a rebate on early settlement. The difference is who owns the asset during the tenure: under AITAB the bank is the owner and repossesses as owner (Hong Leong Islamic's disclosure sheet says repossession follows two consecutive defaults after the Fourth Schedule notices have expired); under Murabahah the bank is a creditor with a charge over the car. For most buyers the price, not the contract, should decide.

Early settlement, ibra' and the rebate rules

Every lender here allows early settlement without a penalty fee, and every one describes a rebate, but the words differ. Bank Islam calls it ibra', the Shariah rebate on the unearned portion of its selling price. Maybank, Hong Leong Islamic and Affin Islamic describe a 'statutory rebate' on 'unexpired' or 'unearned' term charges, the Hire Purchase Act mechanism. Under the Rule of 78 the rebate is weighted so that you have paid more of the profit in the early years, which is why settling early under the old method saves less than you expect.

Our guide to ibra' explains how the rebate is calculated and what Bank Negara Malaysia requires banks to disclose. Before you sign, ask for the settlement figure at years three and five, in ringgit. If the bank cannot produce it, that is a reason to walk.

Deposit, tenure and who qualifies

A 10% deposit is the practical floor across the market because the maximum margin is 90%. Bank Islam's product disclosure sheet mentions special packages at up to 100% for its GradONE graduate scheme; the public page quotes 90%. Tenure tops out at nine years everywhere; Bank Islam additionally caps age at 60 at the end of the tenure, so a 55-year-old gets five years at most there, while Hong Leong Islamic accepts applicants to 70 and AEON Credit to 65.

• Get Bank Islam's grid quote for your vehicle type first, because it is printed and dated.
• Ask CIMB Islamic for its fixed effective rate and for any promotional rate at the Auto Finance Centre.
• Ask Maybank Islamic, Hong Leong Islamic, Public Islamic and Affin Islamic for the effective profit rate and total profit in ringgit on the disclosure sheet, not the flat rate.
• Ask each lender for the settlement figure at year three, which exposes the Rule of 78 weighting.
• Add motor takaful and road tax to the monthly figure before comparing with your budget.

The decision: which lender for which buyer

Buying a new national car or an EV on a fixed salary: get the Bank Islam grid quote first (2.35% to 3.15% national, 2.10% to 2.20% hybrid and EV on the Sum of Digits basis) and make the AITAB banks beat it in effective terms. Buying a foreign car: CIMB's published 5.10% effective is the number to carry into the Maybank, Hong Leong and Public Islamic branches. Buying a used car over ten years old, or recently declined by a bank: AEON Credit, at a price, and only after a bank has said no.

Whatever you choose, insist on three numbers in writing: the effective profit rate, the total profit in ringgit over the full tenure and the settlement figure at year three. Facts checked against bankislam.com, cimb.com.my, maybank.com, maybank2u.com.my, hlbislamic.com.my, publicislamicbank.com.my, affinalways.com, myaeoncredit.com.my, aeonbank.com.my, bnm.gov.my on 22 September 2026.

Frequently asked questions

Which bank has the lowest Islamic car financing rate in Malaysia?

On printed rates, Bank Islam: 2.10% to 2.20% a year for new hybrids and EVs, 2.20% to 2.35% for new non-national cars and 2.35% to 3.15% for national cars, all on the Sum of Digits basis. CIMB Islamic prints effective rates instead, 5.10% for a new foreign car and 6.75% for a new national car. The other banks quote at the branch, so the lowest actual offer depends on your profile.

Is a 2.35% flat rate cheaper than a 5.10% effective rate?

Not necessarily. A flat rate is charged on the original amount for the whole tenure; an effective rate is charged on the falling balance. CIMB's published example shows 3.00% flat over 108 months equals 5.50% effective, with the same RM588 instalment and RM13,500 total profit on RM50,000. Compare total profit in ringgit on the disclosure sheet, not the headline percentage.

Does AEON Bank offer car financing?

No. AEON Bank's home page, fetched on 22 September 2026, lists savings, payments, budgeting and zakat features but no vehicle financing. The AEON car financing sold at dealers is Auto Financing HP-i from AEON Credit Service (M) Berhad, an AITAB product with rates from 3.99% to 9.95% a year flat, up to 90% margin, nine-year tenure and cars up to 16 years old.

Is AITAB car financing halal?

AITAB is the Shariah contract approved for hire purchase by Malaysia's Islamic banks and their Shariah committees: a lease (ijarah) followed by a sale (bai'), with the bank as owner during the lease and ownership passing to you on the final payment. Maybank Islamic, CIMB Islamic, Hong Leong Islamic, Public Islamic, Affin Islamic and AEON Credit all use it. Bank Islam uses Murabahah instead, a sale at a fixed selling price.

Can I settle Islamic car financing early without penalty?

Yes at every lender in this comparison. Bank Islam grants ibra' on full settlement before maturity; Maybank, Hong Leong Islamic and Affin Islamic describe a statutory rebate on unexpired or unearned term charges with no penalty fee. Under the Rule of 78 the rebate is smaller than you might expect in the early years; CIMB's reducing-balance method, in force from 2 July 2026, lowers the month-36 settlement on RM50,000 by RM317.

What deposit do I need for Islamic car financing?

Plan for 10% of the price. Bank Islam, Maybank Islamic, Hong Leong Islamic and AEON Credit all cap the margin at 90% of the on-the-road price or seller's invoice for new cars, and Maybank drops to 85% for secondhand cars. Bank Islam's disclosure sheet mentions up to 100% under its GradONE graduate package. Legal, registration and takaful costs are on top of the deposit.