Hire Purchase Loans

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Eligibility Criteria of Hire Purchase Loans

  • Hire purchase of private and non-commercial passenger cars only
  • Age of vehicles ≤ 7 years
  • Permissible vehicle makes as determined by Cagamas
  • Initial amount financed ≤ RM400,000
  • Original margin of finance ≤ 80% of the purchase price
  • Original financing period ≤ 7 years
  • Remaining maturity must not be less than 6 months
  • 6 monthly instalments have been paid
  • Payment record of the Obligor must not be more than 1 month past due in the 3 month period prior to purchase date
  • The effective interest rate must be > the aggregate servicer fee of 0.75% per annum and the Cagamas Base Pricing
  • Monthly installment must be greater than 110% of the interest portion of the monthly installment
  • The Servicer fee shall be at least RM150 per annum

Other requirements for a hire purchase loan to be eligible for sale to Cagamas are provided in the Cagamas Purchase Without Recourse Guide.