I have been working in Malaysia for few months now and want to buy a car for personal use. I have a monthly salary of 5000RM. Is it possible for expatriates to get a car loan in Malaysia?
I have lived in Thailand (your neighbour to the north!) for over 13 years, and it was several years before I was able to apply for a loan to buy a car here. Even then, I needed a Thai citizen to sign as guarantor to the loan. Obviously my experience is useful for Thailand, and maybe not so much for Malaysia.
However - in general terms, before applying for any loan in any country, you will need to have a credit record in that country. Do you have any credit cards or other loans already? If you don't already have a credit card, I would recommend applying for one of those and keep it fully paid-up for a while (several months should be enough) before approaching a bank and applying for a loan for a car.
I would also imagine that the bank would want to see a valid work permit, a statement from your employer saying how much they pay you and the length of your employment contract with them, and bank statements showing your salary being paid every month. In Thailand they usually ask for 3 or 6 months of bank statements.
Additionally, a quick Google search found this link : Malaysia - Banking. There is some very useful information in there.
The applicable website ExpatFocus notes that you'll need some evidence of good credit, documents etc, but otherwise should be possible for expats:
With a valid visa and a decent credit rating, most expats are able to get loans from a Malaysian bank. The requirements are similar to those of a loan from an American institution. For an expat to apply for a loan, they should make sure they have these documents:
- Photocopy of passport
- Paycheck stubs from the previous 3 months
- Latest tax return form (less than one year old)
- For salaried employees: letter of appointment or confirmation letter stating salary and other income
- Letter of Offer, Sale and Purchase Agreement, or Deposit or booking receipt from housing developer or private seller
- Copy of land title
- Bank statements going back six months
Note : if you haven't been there for more than 3-6 months yet, it is still worth bringing your bank statements etc from your previous country.
You would need a Malaysian citizen who is willing to co-sign, as too many expats skip out on loans. If the bank deals with Wells Fargo, you might get a American loan online from it, if you're an American. It charges a high interest rate on those loans, but I have met a few Americans in Asia who have done it that way.
You can easily get a bank loan if you put up more than 40% of the total capital of the item you want to buy, even without a guarantor.
Eg. You want to buy a car worth RM50K. Come up with 20K in cash and prove you can pay the monthly installment and you should be good to go.