With reference to the article in a local publication titled \u201cHigh car bookings, but 60% loan rejection rate\u201d, The Association of Banks in Malaysia (ABM) refuted the said allegations.<\/p>\n
Based on feedback from amongst the eight commercial banks that offer hire purchase financing, it has been observed that approval rates for loans to purchase cars in 2016 stood at approximately 68% of the total number of applications received.\u00a0<\/p>\n
The approval rate from January 2017 up till September 2017 remained steady at the same percentage of 68% based on total number of applications received.<\/p>\n
ABM stated that, as with all loans, banks would in their credit evaluation process consider all aspects to determine an applicant\u2019s ability to service the loan.\u00a0<\/p>\n
Some of the factors which banks take into consideration in assessing a car loan application are as follows:<\/p>\n
\u2022 Applicant\u2019s ability to service the loan<\/p>\n
\u2022 Applicant\u2019s repayment track record<\/p>\n
\u2022 Loan amount applied for<\/p>\n
\u2022 Length (or term) of the loan<\/p>\n
Some of the main reasons for the rejection of car loans include:<\/p>\n
i. History of credit default\/unfavourable track record<\/p>\n
ii. Insufficient income evidence<\/p>\n
iii. Uncertain payment ability<\/p>\n
iv. Low net disposable income<\/p>\n
It reiterated that the commercial banks in Malaysia have remained supportive of the automotive sector as evidenced by the high approval rates, and car loans will continue to be extended to eligible borrowers.<\/p>\n
\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
With reference to the article in a local publication titled \u201cHigh car bookings, but 60% loan rejection rate\u201d, The Association of Banks in Malaysia (ABM) refuted the said allegations. Based on feedback from amongst the eight commercial banks that offer hire purchase financing, it has been observed that approval rates for loans to purchase cars […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[],"class_list":["post-1178","post","type-post","status-publish","format-standard","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/1178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/comments?post=1178"}],"version-history":[{"count":1,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/1178\/revisions"}],"predecessor-version":[{"id":5157,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/1178\/revisions\/5157"}],"wp:attachment":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/media?parent=1178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/categories?post=1178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/tags?post=1178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}