Hire Purchase or Auto Loan Affordability: How much can I afford? How much can I borrow?
As a guide, your monthly repayment on your housing loan and motor vehicle financing should not exceed 33% of your monthly household income.
However, you should also budget for other payments associated with owing a motor vehicle, such as insurance, road tax and expenses for periodical maintenance.
The margin of financing will depend on your credit standing subject to a maximum of 90% of purchase price or any other lower margin of financing fixed by the banking institution.
Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)
Back to the top
Related Knowledge Base Issues