Bank Islam Malaysia Review - Halal Finance Products
Reviewed quarterly and updated for major content changes.
Bank Islam Malaysia offers halal financial products and services designed to align with Islamic principles. These options provide alternatives to conventional interest-based financial products, using structures like Murabaha, Ijara, and Musharakah.
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HalalWallet 2026 Review
Bank Islam Malaysia - At a Glance
9
Products Reviewed
All
Provinces (Nationwide)
4
Categories
Our Verdict
Bank Islam is the purist's choice and, unusually, also the price leader on printed financing rates. There is no conventional parent to firewall: everything from the app to treasury sits under the Group Shariah Supervisory Council. Its printed 3.55% home financing EPR and full vehicle financing grid set the transparency benchmark the rest of the cluster should be judged against. The network is smaller than Maybank's or CIMB's, and deposit yields are ordinary, but for financing and for conscience, it is the reference point.
Pros & Cons
What We Like
- Pure-play Islamic bank since 1983; no conventional book anywhere in the entity
- Best printed financing transparency: 3.55% home EPR and a complete vehicle rate grid
- Six named GSSC scholars with published Charter and Terms of Reference
- Al-Awfar prize-draw savings is a distinctive halal alternative to conventional lucky-draw accounts
What Could Be Better
- Branch and ATM network is far smaller than Maybank's or the Public Bank group's
- Deposit profit rates are unremarkable next to Public Islamic's ForU2Save or RHB's Smart Account-i bonuses
- Digital experience trails Maybank2u and CIMB OCTO
Who Is Bank Islam Malaysia Best For?
Home buyers who want verifiable pricing
Printed 3.55% indicative EPR, the cluster's lowest published home financing rate
Car buyers who want the rate before the showroom
Fixed-rate grid printed from 2.10% for new vehicles
Customers who want purity over convenience
A bank with no conventional operations at all
Detailed Analysis
Bank Islam Malaysia Berhad opened in 1983 as Malaysia's first Islamic bank and remains the country's flagship pure-play: it has no conventional parent, window or sister brand, which eliminates the co-mingling concerns that attach to subsidiary structures. Governance runs through the six-member Group Shariah Supervisory Council chaired by Ir Dr Muhamad Fuad Abdullah, named in full on the leadership page with a published Charter (crawled bankislam.com 2026-08-06).
Its most distinctive market behaviour is printing prices. The Baiti home financing page shows a 3.55% indicative effective profit rate; the vehicle financing page prints a complete fixed-rate grid running 2.10% to 3.92% across tenures and vehicle ages. In a cluster where most rivals hide financing pricing behind calculators and PDS downloads, these two pages make Bank Islam the de facto negotiation anchor for the whole market.
The deposit side is more ordinary: Qard transactional accounts pay at discretion, the Tawarruq term deposit (TDT-i) prices competitively but not spectacularly, and the marquee product is Al-Awfar, which layers Islamically structured prize draws over Qard savings, a clever behavioural product rather than a yield product.
The practical trade-off is infrastructure. With a smaller branch network and a digital stack that trails Maybank2u and CIMB OCTO, Bank Islam suits customers who choose it deliberately, for financing value or for principle, rather than for everyday convenience.
How It Works
Bank Islam maps classical contracts across its shelf: Qard for transactional savings and current accounts (including Al-Awfar), Tawarruq for term deposits and personal financing, and Tawarruq-based structures for Baiti home financing and Wahdah refinancing, with vehicle financing on Malaysia's AITAB hire purchase pattern at fixed rates. As a full Islamic bank under IFSA 2013, every product, treasury operation and investment is subject to the Group Shariah Supervisory Council.
Open or apply
Deposit accounts via branch or the Bank Islam app; financing via branch with the PDS carrying full pricing.
Check the printed rates
Home financing shows a 3.55% indicative EPR; vehicle financing prints its full fixed-rate grid, so you can compute your instalment before applying.
Bank fully Islamic
Every account and facility sits under the GSSC; PIDM protects Islamic deposits up to RM250,000.
Shariah Compliance Review
Oversight Level
Review details on provider's website
Group Shariah Supervisory Council of six named scholars, chaired by Ir Dr Muhamad Fuad Abdullah (bankislam.com leadership page, crawled 2026-08-06)
Published GSSC Charter and Terms of Reference on the corporate governance page (crawled 2026-08-06)
Full-fledged Islamic bank under IFSA 2013; Malaysia's first, established 1983 (registration no. 198301002944)
PIDM member; Islamic deposits protected up to RM250,000 per depositor (crawled 2026-08-06)
Shariah compliance should always be verified directly with Bank Islam Malaysia. HalalWallet reports publicly available oversight information but does not issue fatwas or certify compliance.
How It Compares
Against Maybank Islamic, Bank Islam trades network for purity and printed prices. Against CIMB Islamic, its financing transparency wins while CIMB takes deposits (fresher board rates, three payout modes) and cards. Against RHB Islamic, Bank Islam's printed 3.55% EPR undercuts RHB's 4.50% standard indicative rate, though RHB counters with a true Musharakah Mutanaqisah option for structure-first buyers.
vs. RHB Islamic Bank
Offers a genuine diminishing-partnership mortgage and richer deposit bonuses, but its printed standard indicative home rate (4.50%) is above Bank Islam's 3.55%.
vs. Maybank Islamic
Vastly larger network and Amex cards, but stale online rate disclosure and no printed financing EPR.
Prints a worked 3.60% EPR example within five basis points of Bank Islam, with better contract education but a smaller product range.
Bottom Line
Malaysia's original Islamic bank still sets the standard where it matters: an all-Islamic balance sheet, six named scholars with a published charter, and financing prices printed on the page. Use its 3.55% home EPR and vehicle grid as your benchmark even if you ultimately bank elsewhere.
Products from Bank Islam Malaysia
Why It's Halal
Issued by a full-fledged Islamic bank under the named GSSC, with versioned card T&Cs (effective 8 April 2026), a current PDS (effective 1 August 2026) and published profit-rate revision notices, evidence of active Shariah-governed repricing rather than static marketing. Cards carry Takaful (not insurance) coverage documents. Honest caveat: the card contract (Bank Islam cards operate on Shariah-compliant structures per the PDS; historically Bai' al-Inah, revised over time) is not named in the crawlable listing text, so we cite the published document trail (crawled bankislam.com 2026-08-06).
Bank Islam Malaysia
Bank Islam Credit Card-i (Visa and Mastercard family)
Bank Islam's Islamic credit card family: Visa Infinite (min income RM36,000 p.a.), Visa Platinum with up to 5% cash back on online, auto-billing, grocery and dining (RM36,000), Mastercard Platinum with up to 2x TruPoints on contactless and petrol (RM36,000), Mastercard Inspire with lifetime annual fee waiver and 2x Plaza Premium Lounge visits (RM36,000), Visa Gold with up to 3% cash back (RM24,000), Mastercard Gold with unlimited 1 TruPoint per RM1 (RM24,000), and a Visa Infinite Business card with up to 8% cash back. Product Disclosure Sheet effective 1 August 2026, revised profit rate notices, 0% instalment plan programme and Takaful coverage documents are all published on the page (crawled bankislam.com 2026-08-06).
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Bank Islam Malaysia
Awfar Savings Account
Bank Islam's prize-draw savings account based on Tawarruq (two sale and purchase contracts, defined on the page), where deposits earn contractual profit credited monthly and account balances earn entries into the Awfar prize draws (draw eligibility, categories and prizes last updated effective 1 July 2026). Minimum opening deposit RM100 with RM10 minimum balance, principal and profit guaranteed, Bank Islam Visa Debit Card-i, salary crediting, standing instructions and BIMB Web/Mobile access. Open to individuals aged 12 and above (trust accounts below 12), joint and trust customers. Protected by PIDM up to RM250,000 per depositor (crawled bankislam.com 2026-08-06).
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Bank Islam Malaysia
Qard Savings Account-i
Bank Islam's basic savings account based on the Qard contract, printed in full on the page: the bank may use deposited funds, guarantees repayment of the whole balance on demand, and may at its absolute discretion give reward (hibah), which the page notes may be paid monthly. Minimum opening RM100, minimum balance RM10, open to all ages (individual from 12, trust below 12, joint accounts), with free passbook on request, Bankcard, salary crediting, standing instructions, bill payment and BIMB internet/mobile banking. PIDM protected up to RM250,000 (crawled bankislam.com 2026-08-06).
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Bank Islam Malaysia
Term Deposit-i Tawarruq (TDT-i)
Bank Islam's capital-guaranteed term deposit under Tawarruq, with the upfront profit rate contracted at point of sale. Tenures run 1 to 60 months (monthly steps to 12 months, quarterly steps 15 to 60), minimum placement RM1,000 for 1 month or RM500 for 2 months and above with no maximum, profit paid at maturity (up to 1 year) or half-yearly (above 1 year). The underlying commodity is Crude Palm Oil or other Shariah-approved commodity; brokerage is absorbed by the bank (on premature withdrawal the customer pays 50% of third-party brokerage, deducted from the sale price). Premature withdrawal is allowed with no profit paid; partial withdrawal is not allowed. Auto-renewal at prevailing rates, certificate or eCertificate operation, PIDM protected (crawled bankislam.com 2026-08-06).
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Bank Islam Malaysia
Qard Current Account-i
Bank Islam's chequing account under the Qard contract for safe custody of cash, open to Malaysians and permanent residents aged 18+, with minimum initial deposit RM500 for individuals and RM1,000 for non-individuals, and no minimum balance thereafter. Facilities include Bankcard, salary crediting and sweeping, standing instructions, e-Debit point-of-sale payment, MEPS Cash e-purse, internet and TAP mobile banking; hibah may be given monthly at the bank's discretion. Account types span individual, joint, partnership, government, association and more. PIDM protected up to RM250,000 (crawled bankislam.com 2026-08-06).
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Bank Islam Malaysia
Baiti Home Financing-i
Bank Islam's flagship home financing for under-construction and completed houses, with margin of financing up to 90% (excluding compulsory MRTT/MLTT, optional householder Takaful, stamp duty, legal and valuation fees), tenure up to 35 years or age 70, and printed pricing: as low as SBR + 0.80% p.a., an effective profit rate of 3.55% at the current Standardised Base Rate of 2.75% (effective 10 July 2025). The page states no lock-in period, no compounding elements, no processing fee and no penalty for early settlement. A Product Disclosure Sheet effective 18 November 2025 is published in English and Malay, and the shelf includes an LPPSA civil-servant variant and Wahdah refinancing (crawled bankislam.com 2026-08-06).
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Bank Islam Malaysia
Wahdah Home Refinancing-i
Bank Islam's refinancing product for completed houses, letting owners lower monthly instalments or unlock cash against the appreciated value of their property. Margin of financing up to 90% (excluding compulsory MRTT/MLTT, householder Takaful if applicable, stamp duty, legal and valuation fees), with the same printed pricing as Baiti: as low as SBR + 0.80% p.a. (EPR 3.55% at the current 2.75% SBR effective 10 July 2025), no lock-in period, no compounding, no processing fee and no early settlement penalty. Product Disclosure Sheet effective 18 November 2025 published in English and Malay (crawled bankislam.com 2026-08-06).
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Bank Islam Malaysia
Vehicle Financing-i
Bank Islam's vehicle financing with a fully printed rate grid: new national vehicles 2.35% to 3.15% p.a., new non-national 2.20% to 2.35%, unregistered reconditioned 2.35% to 2.70%, new hybrid and EV 2.10% to 2.20%, used vehicles from 3.65% (1 to 5 years old) and from 3.92% (6 to 10 years old), profit calculated monthly on the Sum of Digits method. Margin of financing up to 90% of on-the-road price, tenure up to 9 years, with a fixed and known selling price, ibra' (rebate) on early settlement and printed ta'widh (late compensation) terms: 1% p.a. on overdue instalments before maturity, IIMM-rate-based after maturity (crawled bankislam.com 2026-08-06).
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Bank Islam Malaysia
Personal Financing-i (Package and Non-Package)
Bank Islam's personal financing family with fully printed floating-rate grids referenced to the Standardised Base Rate (SBR 2.75% effective 10 July 2025). Package (employer-tied) financing runs RM10,000 to RM400,000 over up to 10 years, from SBR + 2.25% = 5.00% (1 to 2 years, government package with Takaful) to SBR + 6.30% = 9.05% without Takaful. Non-package financing runs RM10,000 to RM300,000 over up to 10 years with rates from SBR + 6.25% = 9.00% (salary transfer with Takaful) up to SBR + 18.25% = 21.00% (standing instruction, salary below RM5,000, no Takaful). Selling price is fixed and known; no guarantor, deposit or processing fee; benefits include cross-sell discounts for house financing customers (crawled bankislam.com 2026-08-06).
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Where Available
Based on listings we track, Bank Islam Malaysia operates nationwide:
Nationwide availability
Availability may vary by product type. Always verify current availability directly with Bank Islam Malaysia.
How We Compare
- • We review publicly available information from providers, including Shariah compliance documentation.
- • We compare financing structures, total costs, down payment requirements, and state availability.
- • We prioritize providers that clearly explain their halal compliance rationale and operate with transparency.
- • We note which products are available nationwide versus regionally.
- • Learn more about our methodology.
Quick Answer
Bank Islam Malaysia offers halal financial products that comply with Shariah principles, avoiding interest (riba) and prohibited industries. Their products are available in 1 state and include Bank Accounts, Home Financing, Personal Financing, Vehicle Financing options.
Key Takeaways
- Bank Islam Malaysia offers Shariah-compliant financial products that avoid interest and prohibited industries.
- Products are available in 1 state: Nationwide.
- Product categories include Bank Accounts, Home Financing, Personal Financing, Vehicle Financing.
- Always verify compliance directly with Bank Islam Malaysia and consult qualified Islamic finance advisors when needed.
- Compare Bank Islam Malaysia's products with other providers to find the best fit for your needs.
Important: HalalWallet provides educational information and comparisons to help you explore halal financial options. We do not provide financial, legal, or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-09
How to cite this page
Preferred format:
For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.
Related Guides
Frequently Asked Questions
What types of halal products does Bank Islam Malaysia offer?
Bank Islam Malaysia offers 9 products across 4 categories. Bank Islam Malaysia is best for [object Object],[object Object],[object Object]. Review the products listed above or contact Bank Islam Malaysia directly for current offerings.
How does Bank Islam Malaysia ensure Shariah compliance?
Group Shariah Supervisory Council of six named scholars, chaired by Ir Dr Muhamad Fuad Abdullah (bankislam.com leadership page, crawled 2026-08-06) Published GSSC Charter and Terms of Reference on the corporate governance page (crawled 2026-08-06) Full-fledged Islamic bank under IFSA 2013; Malaysia's first, established 1983 (registration no. 198301002944) PIDM member; Islamic deposits protected up to RM250,000 per depositor (crawled 2026-08-06)
How does Bank Islam Malaysia work?
Open or apply: Deposit accounts via branch or the Bank Islam app; financing via branch with the PDS carrying full pricing. Check the printed rates: Home financing shows a 3.55% indicative EPR; vehicle financing prints its full fixed-rate grid, so you can compute your instalment before applying. Bank fully Islamic: Every account and facility sits under the GSSC; PIDM protects Islamic deposits up to RM250,000.
Is Bank Islam Malaysia available in my state?
Bank Islam Malaysia operates nationwide, though specific products may have regional limitations. Always verify current availability directly with Bank Islam Malaysia.
What are alternatives to Bank Islam Malaysia?
Against Maybank Islamic, Bank Islam trades network for purity and printed prices. Against CIMB Islamic, its financing transparency wins while CIMB takes deposits (fresher board rates, three payout modes) and cards. Against RHB Islamic, Bank Islam's printed 3.55% EPR undercuts RHB's 4.50% standard indicative rate, though RHB counters with a true Musharakah Mutanaqisah option for structure-first buyers. RHB Islamic Bank: Offers a genuine diminishing-partnership mortgage and richer deposit bonuses, but its printed standard indicative home rate (4.50%) is above Bank Islam's 3.55%. Maybank Islamic: Vastly larger network and Amex cards, but stale online rate disclosure and no printed financing EPR. Hong Leong Islamic Bank: Prints a worked 3.60% EPR example within five basis points of Bank Islam, with better contract education but a smaller product range.
Are Bank Islam Malaysia's products more expensive than conventional options?
Halal financing structures can have different fee structures compared to conventional products. Some options may be competitive with conventional rates, while others may have different cost structures. Pricing varies by product type, location, and individual circumstances. Always compare total costs and terms when evaluating options.
How do I contact Bank Islam Malaysia?
Contact information for Bank Islam Malaysia should be available through their website or the product listings above. Use the action links provided with each product to visit Bank Islam Malaysia's website or contact them directly for more information.
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