How Much Salary, How Much Loan Approved
We came across a lot people who questions us most of the time, how much salary should I have to get approval for the car. Initially we will always question customer back how much is actually your salary so we could see about how much loan amount can be approved. In fact this is actually not a very good answer to be honest, why? Because you are not answering the question people ask and yet you question back your customer.
Let's get this straight, a lot of times customer is not confirm to buy the car or not yet while they are doing survey to understand that how much with their current salary can loan the amount they eligible to. In addition, their budget after deduct their expenses and savings after collecting the net income after EPF and income tax deductions and of course commitments that they had previously.
In this article we try to clarify it to make customer more understand how bank actually calculate your income and give you the estimated loan amount after your risk profile.
Minimum income for survival in your current lifestyle. For those whom newly join the working force, minimum income for urban area around RM1500 and for sub urban area will be RM1250. For those who earn higher amount, your existing commitment and your net salary will direct affect your risk profile as your living standards improved and so are your marital status.
How to calculate loan amount based on the minimum income and your current earnings. For example your Net Income is RM2500 and living in an urban area, if your CCRIS records are all ok, your loan amount can up to RM85,000 with a monthly instalment of around RM980.
Approval rate are based on your Income, Position in your company, Company background, Income Tax Report, Age, Type of Car you purchase and your CCRIS Report. Approval rate can be also refer to your risks profile. A person who work as a security guard, bodyguard or lorry driver are harder to get a loan because with their nature of job scope are dangerous.
Below are some guidelines that how much your salary can loan the loan amount (subject to zero to low commitment)
Salary | Loan Amount | Instalment (9 years)
1. RM2,000 | RM35,000 | RM420
2. RM2,500 | RM85,000 | RM980
3. RM3,000 | RM115,000 | RM1,330
4. RM4,000 | RM170,000 | RM1,950
5. RM6,000 | RM250,000 | RM2,850
Above all are guidelines, if you're a car person who don't like other commitments but only cars. above loan amount you can roughly see what car you able to purchase for your budget range.
In the end, of course buying car is always easy. Is about maintenance in the end, buying is cheap, but when comes to servicing and repairing sometimes it could end up a huge costs.
Extra tips of today, general 4 doors car loan always can up to FULL LOAN, depending on your salesperson who try to help you submit your hire purchase application. However if you're aiming for 2 door car, be prepare for 70% loan around that because bank normally very discourage in loan approval for these variants of car.
Please comment down below if you have any questions for us and you always can email directly to us for more information at firstname.lastname@example.org