Maybank vs Public Bank Car Loan Malaysia 2026: Which Hire Purchase Wins?
On 1 June 2026, the Hire-Purchase Amendment Act 2025 ends flat-rate car loans in Malaysia. Maybank wins the old comparison (2.30% flat vs Public Bank's 2.45%) — but under the new reducing-balance method that takes effect in 16 days, Public Bank's Aitab Hire Purchase-i is actually 0.09 percentage points cheaper at the floor. Which one you should pick depends entirely on when you sign.
Short answer: If you sign before 1 June 2026, Maybank's 2.30% flat saves you about RM 840 on a RM 80,000 / 7-year loan versus Public Bank — and is the right pick on rate alone. If you sign on or after 1 June, Public Bank Aitab Hire Purchase-i (3.31%-4.10% p.a. reducing-balance) edges Maybank's conventional product on the floor rate, and the Islamic Ibra' rebate logic is no longer a tiebreaker because all new conventional loans move to reducing balance too.
Ready to apply? RinggitPlus pulls live hire-purchase quotes from both banks in one form — no CCRIS hit, no commitment.
Compare car loan rates — free, 2 minutesSide-by-Side: Maybank vs Public Bank Hire Purchase
| Feature | Maybank Hire Purchase | Public Bank Hire Purchase |
|---|---|---|
| New car rate (pre-HPAA flat) | From 2.30% flat (≈4.26% EIR) | From 2.45% flat (≈4.53% EIR) |
| New car rate (post-HPAA reducing balance) | 3.40% – 4.25% p.a. | 3.31% – 4.10% p.a. (Aitab-i) |
| Reconditioned car rate | From 2.70% flat (≈5.00% EIR) | From 2.80% flat (≈5.18% EIR) |
| Used car rate | From 3.20% flat (≈5.92% EIR) | 2.80% – 3.30% flat (≈5.18%-6.11% EIR) |
| Max tenure (new car) | 9 years | 9 years |
| Max financing (new car) | Up to 90% (100% on promo) | Up to 90% |
| Max financing (used car) | Up to 70% | Up to 80-85% |
| Minimum income | RM 2,000 – RM 2,500 gross | RM 2,000 gross |
| Age eligibility | 21 – 65 (loan settled before 70) | 21 – 65 (loan settled before 70) |
| Islamic option | Maybank Murabahah-i (≈2.50% flat for new cars) | Public Bank Aitab Hire Purchase-i (PB Islamic / PIBB) |
| Early settlement (pre-HPAA conventional) | Rule of 78 (front-loaded interest) + HPAA 2026 goodwill discount | Rule of 78 (front-loaded interest) + HPAA 2026 goodwill discount |
| Early settlement (Islamic option) | Mandatory Ibra' rebate (fairer than Rule of 78) | Mandatory Ibra' rebate (fairer than Rule of 78) |
| Branch network | ~360 branches nationwide, strong M2U digital | 260+ branches, largest private-bank dealer footprint |
| Dealer pipeline strength | Moderate (digital-first) | Strong — Proton/Perodua/Toyota |
| Best for | Existing Maybank customers, rate-first new-car buyers signing before 1 June 2026 | Dealer-driven buyers, used-car buyers needing higher financing, post-HPAA borrowers wanting cheapest reducing-balance rate |
Source: RinggitPlus car-loan listings, Maybank Hire Purchase product page, Public Islamic Bank Aitab Hire Purchase-i product page, ABM HPAA 2026 press release. Verified May 2026. Final personalised rate depends on credit profile, employer, car model, and tenure.
One detail the headline numbers hide: "Maybank wins on rate" is technically correct for the next 16 days. Then HPAA 2025 takes effect and reframes everything in reducing-balance terms — at which point Public Bank's Islamic Aitab-i edges Maybank's conventional product at the floor. The dealer-pipeline and financing-margin advantages have been quietly favouring Public Bank all along. Most rate-comparison articles haven't updated for HPAA. We did.
Want to see your actual quote? The RinggitPlus form pulls personalised quotes from both Maybank and Public Bank (and 13 other lenders) in one go — no CCRIS impact.
See your personalised car loan rate — no CCRIS impactWhat HPAA 2025 Actually Changes (and When)
The Hire-Purchase (Amendment) Act 2025 takes effect on 1 June 2026, with a transition period running to 31 March 2027. The Ministry of Domestic Trade and Cost of Living confirmed the date; the Association of Banks in Malaysia, AIBIM, and ADFIM are coordinating the industry rollout.
For new hire-purchase agreements signed from 1 June 2026: the flat-rate quotation method is replaced by a reducing-balance method with an Effective Interest Rate (EIR) disclosure. This brings hire purchase into line with how mortgages and personal loans are already quoted — the rate you see is the rate you pay over the outstanding balance, not on the original principal for the full tenure.
For existing agreements signed before 1 June 2026: they continue on the original flat-rate / Rule of 78 basis. However, banks are introducing a goodwill discount at the point of early settlement — designed to approximate what the outstanding balance would have been under reducing balance. The discount is not a fixed percentage; each bank calculates it based on your tenure, the timing of settlement, and the specifics of your agreement. Both Maybank and Public Bank are participating.
The practical implication: if you're signing in the next 16 days, you're locking into the old method. The good news is the goodwill discount mechanism softens the worst of the Rule of 78 front-loading if you settle early. The cleaner outcome is to sign on or after 1 June 2026 if you can wait — you get the same headline rate range but a fairer cost structure across the life of the loan.
Rule of 78 vs Murabahah-i Ibra' Rebate: The Early-Settlement Trap
This is the under-reported decision factor in Malaysian hire purchase, and the reason a 0.15 percentage-point rate gap can flip if you settle in year 3 of a 7-year loan.
Rule of 78 front-loads interest charges. On a 7-year loan, roughly 25% of total interest is "earned" by the bank in year 1, falling to 1.5% in year 7. If you settle in year 3, the bank has already booked about 60% of the interest — your "rebate" is calculated on the remaining 40%, which is small. The label is misleading: it sounds proportional, it isn't.
Ibra' (the Islamic rebate) returns the unearned profit on the remaining tenure, calculated on a basis that approximates reducing balance. Settle in year 3 of a 7-year Murabahah-i facility, and the rebate is meaningful — typically RM 3,000-8,000 on a RM 80,000 loan, depending on the specific calculation. This is why we steered halal-conscious borrowers toward the Islamic option in our /blog/maybank-car-loan-review-malaysia/ deep dive, and why the same logic applies to /blog/public-bank-car-loan-review-malaysia/.
From 1 June 2026, this advantage narrows because new conventional hire-purchase agreements also move to reducing balance — the Rule of 78 disappears for new contracts. For any agreement signed before 1 June 2026, the Islamic version (Maybank Murabahah-i or Public Bank Aitab Hire Purchase-i) remains the safer pick if you might settle early. If you're certain you'll hold to maturity, the conventional product's slightly lower flat rate (Maybank 2.30% vs Murabahah-i ~2.50%) wins.
Worked Example: RM 80,000 Over 7 Years
The number that decides most car loans is the all-in monthly instalment and total interest cost. We ran a RM 80,000 / 7-year scenario through both banks at the prevailing pre-HPAA flat rates.
| Cost line | Maybank Hire Purchase | Public Bank Hire Purchase |
|---|---|---|
| Flat rate quoted | 2.30% p.a. | 2.45% p.a. |
| Effective Interest Rate (EIR) | ≈ 4.26% | ≈ 4.53% |
| Monthly instalment | ≈ RM 1,105 | ≈ RM 1,119 |
| Total interest over 7 years | ≈ RM 12,880 | ≈ RM 13,720 |
| Total cost (principal + interest) | ≈ RM 92,880 | ≈ RM 93,720 |
| Gap (Maybank advantage if held to maturity) | ≈ RM 840 saved with Maybank over 7 years (≈ RM 10/month) | |
| If settled at year 3 (Rule of 78) | Maybank outstanding ≈ RM 56,400 | Public Bank outstanding ≈ RM 56,800 |
| If settled at year 3 (Murabahah-i / Aitab-i with Ibra') | ≈ RM 4,000-5,500 saved vs Rule of 78 | ≈ RM 4,000-5,500 saved vs Rule of 78 |
Indicative figures based on flat-rate quotation, pre-HPAA. Actual personalised rate depends on credit profile, employer, car model, and tenure. Ibra' savings are illustrative — request a specific quote from the bank for your scenario.
The real lesson: the RM 840 Maybank rate advantage is genuine but small — about RM 10/month over 7 years. If you might settle early, that small rate edge is dwarfed by the early-settlement rebate mechanics. The Islamic version of either bank (Murabahah-i or Aitab-i) saves materially more than the rate gap if year-3 settlement is realistic. After 1 June 2026, both conventional products will move to reducing balance, narrowing this gap automatically — at which point Public Bank's slightly cheaper reducing-balance floor (3.31% p.a. on Aitab-i vs 3.40% on Maybank) is the rate-based winner.
Eligibility: Income, DSR, and the Real Income Floor
Both banks publish similar headline eligibility — RM 2,000 gross monthly income, age 21-65 with loan settled before 70, Malaysian citizen or PR. The real gating factor is Debt Service Ratio (DSR), capped at roughly 60-70% of net income under Bank Negara guidelines.
Realistic income bands for common car classes:
- Perodua Axia / Bezza (RM 40K-55K): RM 2,500+ net income, both banks comfortable.
- Perodua Myvi / Proton Saga (RM 50K-75K): RM 3,000-3,500+ net, both banks straightforward.
- Honda City / Toyota Vios (RM 90K-110K): RM 4,500-5,500+ net, dealer relationship matters more.
- Honda Civic / Toyota Corolla (RM 130K-160K): RM 6,500-8,000+ net, banking relationship pricing kicks in.
- Luxury / continental (RM 200K+): RM 10,000+ net or strong existing-customer status at the bank.
Public Bank tends to be marginally more lenient on the borderline DSR cases for existing customers — branch relationship managers have more discretion. Maybank's algorithm-driven assessment for new-to-bank applicants is slightly stricter at the edges. Neither difference is large enough to change the decision if your DSR is comfortably under 60%.
Processing Speed and Dealer Pipeline
Public Bank's 260+ branches are concentrated in commercial areas with strong Chinese-majority small-business presence — and historically, those branches built deep relationships with Proton, Perodua, and Toyota dealerships. The practical implication: walk into many independent or franchise dealers in KL, PJ, Penang, JB, or Ipoh, and the dealer's "preferred bank" finance officer is often a Public Bank rep. Your file is pre-screened on the dealer's premises; approval lands in 24-72 hours.
Maybank's edge is digital. The Maybank2u (M2U) app lets existing customers complete most of the hire-purchase application online — eligibility check, income verification via salary credits, document upload — leaving only the signing visit to the branch or dealer. For an existing Maybank customer with a 12+ month salary account history, this is the fastest no-friction path. For a non-Maybank customer, the digital path doesn't shave time because you still need to onboard.
The decision factor: if you have a strong relationship with one of the two banks, use it — both for speed and for rate. If you don't, and you're buying through a dealer, Public Bank's dealer pipeline usually wins on speed. If you don't, and you're buying via a private sale or direct from a marque (Tesla, BYD, Polestar), the dealer-pipeline advantage evaporates and you should pick on rate.
The Verdict: Profile-by-Profile
Our Pick: Maybank Hire Purchase for new-car buyers signing before 1 June 2026 on rate alone. Public Bank Aitab Hire Purchase-i for buyers signing on or after 1 June 2026, used-car buyers, and dealer-driven purchases.
If you're buying a new car before 1 June 2026 and rate is your only criterion: Maybank wins. 2.30% flat vs Public Bank's 2.45% saves you about RM 840 on a typical RM 80,000 / 7-year loan. The Maybank Murabahah-i variant (Islamic) is slightly higher at ~2.50% but adds the Ibra' rebate safety net if you might settle early.
If you're buying a new car on or after 1 June 2026: Public Bank's Aitab Hire Purchase-i (3.31%-4.10% p.a. reducing-balance) sits 0.09 percentage points below Maybank's conventional product (3.40%-4.25%) at the floor. The reducing-balance method makes the rate directly comparable to a personal loan or a mortgage — no flat-to-EIR conversion needed. Public Bank wins on rate, and the dealer-pipeline advantage compounds.
If you're buying a used or reconditioned car: Public Bank's higher financing margin (80-85% vs Maybank's 70%) is the larger advantage — it reduces your required down payment by RM 5,000-10,000 on a typical used purchase, which matters more than the small rate gap. Worth getting a third quote from AmBank, which historically prices used-car HP aggressively (see /blog/best-car-loan-malaysia/ for the panel).
If you're an existing Maybank Premier1 / Privilege customer: Maybank wins on relationship pricing and M2U convenience, regardless of HPAA timing.
If you're an existing Public Bank customer with PB Gold/Visa Platinum or Public Mutual: Public Bank wins on relationship pricing and branch convenience.
If you're halal-conscious: Both Maybank Murabahah-i and Public Bank Aitab Hire Purchase-i are Shariah-compliant via Al-Murabahah principle. On pre-HPAA agreements, the Islamic product is mathematically friendlier on early settlement (Ibra' rebate vs Rule of 78). On post-HPAA agreements, the difference narrows because conventional products also move to reducing balance — at which point Public Bank's Aitab-i still edges Maybank's Murabahah-i at the floor rate.
For a wider panel, our best car loan Malaysia roundup compares Maybank, Public Bank, CIMB, RHB, Hong Leong, and AmBank head-to-head, and the best hire purchase Malaysia guide goes deeper on Islamic variants. For single-bank deep dives, see /blog/maybank-car-loan-review-malaysia/ and /blog/public-bank-car-loan-review-malaysia/.
Whichever profile fits you, the RinggitPlus aggregator pulls live quotes from both Maybank and Public Bank in one form — no CCRIS hit, no commitment, ~2 minutes.
Get your personalised car loan rate — 2 minutes, no CCRIS impactFrequently Asked Questions
What is the actual interest rate difference between Maybank and Public Bank car loans in 2026?
On the pre-HPAA flat-rate basis (still applicable until 31 May 2026), Maybank quotes from 2.30% flat (≈4.26% EIR) and Public Bank from 2.45% flat (≈4.53% EIR) for new cars — a 0.15 percentage-point gap that translates to roughly RM 840 in extra interest on an RM 80,000 / 7-year loan. From 1 June 2026, when the Hire-Purchase Amendment Act 2025 abolishes the flat-rate method, both banks switch to a reducing-balance EIR. Current RinggitPlus listings show Maybank at 3.40%-4.25% p.a. reducing-balance versus Public Bank Aitab-i at 3.31%-4.10% p.a. reducing-balance — under the new method, Public Bank's Islamic option is actually slightly cheaper at the floor.
What changes for Maybank and Public Bank car loans on 1 June 2026?
The Hire-Purchase Amendment Act 2025 (HPAA) takes effect on 1 June 2026, with a transition period to 31 March 2027. New hire-purchase agreements signed from 1 June 2026 must use the reducing-balance method together with an Effective Interest Rate (EIR) — the flat rate plus Rule of 78 early-settlement formula is abolished for new contracts. Existing agreements stay on Rule of 78 but become eligible for a 'goodwill discount' if you settle early, calculated to approximate what the outstanding balance would have been under reducing balance. Both Maybank and Public Bank are participating in the industry initiative.
Rule of 78 vs Ibra' rebate — which is better for early settlement?
The Ibra' rebate (used in Maybank Murabahah-i and Public Bank Aitab Hire Purchase-i) is mathematically fairer for early settlement than the Rule of 78. Rule of 78 front-loads interest charges — the first year of a 7-year loan absorbs roughly 25% of total interest. So if you settle in year 3 of a 7-year flat-rate conventional loan, you've already paid most of the interest and the 'rebate' is small. Ibra' returns the unearned profit calculated on the remaining tenure, which approximates the reducing-balance position. For borrowers who realistically might settle early (selling the car, refinancing, lump sum bonus), the Islamic option saves real money. From 1 June 2026 the gap closes for new conventional loans — they too move to reducing balance — but the gap remains for any agreement signed before that date.
Which bank is faster for car loan approval — Maybank or Public Bank?
Both banks process most applications in 2-5 working days when the documentation is clean. Public Bank has a historical edge in dealer-driven approvals — its 260+ branches and long-standing relationships with Proton, Perodua, and Toyota dealer networks mean the dealer's preferred Public Bank branch officer often pre-screens your file before you formally apply. This is particularly true in Chinese-majority commercial areas where Public Bank's dealer concentration is highest. Maybank's edge is digital — the M2U app and Maybank ID lets existing customers complete most of the application online, with branch visit only for signing. If you walk in cold without a banking relationship, Public Bank's dealer pipeline is faster. If you already bank with Maybank, the M2U path is faster.
What is the minimum income for a Maybank or Public Bank car loan in Malaysia?
Both banks publish a minimum gross monthly income around RM 2,000, but the practical floor is higher because of the Debt Service Ratio (DSR) cap. Bank Negara guidelines limit total monthly debt repayments to roughly 60-70% of net income. For a typical RM 70,000 car loan over 7 years at the prevailing flat rate, the monthly instalment is around RM 820-840 — at RM 2,000 gross, this is most of your DSR ceiling before you account for any other commitment. Realistic income bands: RM 3,000+ net for a Perodua Myvi-class purchase, RM 5,000+ net for a Honda City-class purchase, RM 8,000+ net for a Honda Civic or Toyota Vios premium. Both banks apply the same DSR maths; the difference is in qualitative factors like banking relationship and dealer pipeline.
Should I choose Maybank or Public Bank for a used or reconditioned car?
For new cars, Maybank's 2.30% flat headline beats Public Bank's 2.45% flat (until HPAA effective date). For used and reconditioned cars, the story changes. Maybank quotes used-car rates from 3.20% flat (≈5.92% EIR) with up to 70% financing; Public Bank quotes 2.80%-3.30% flat (≈5.18%-6.11% EIR) with up to 80-85% financing. Public Bank's higher financing margin on used cars is the under-appreciated advantage — it reduces your required down payment, which matters more than the small rate difference for most used-car buyers. AmBank is often cheaper still for recond and used vehicles (worth a third quote) — see our /blog/best-car-loan-malaysia/ for the full panel.
Is Maybank or Public Bank better for an existing customer?
Whichever bank already holds your salary account, fixed deposit, or credit card. Both Maybank and Public Bank use relationship-based credit assessment on hire-purchase applications — your existing banking history (account age, average balance, payment behaviour) feeds into the rate quote and the approval speed. Maybank's relationship signal is stronger for Premier1/Maybank Privilege customers; Public Bank's relationship signal is stronger for customers with Public Mutual investment accounts or PB Gold/PB Visa Platinum cards held for 2+ years. If you have no relationship with either bank, the rate quote you receive will be the standard tier, and the relationship advantage is zero — at that point, pick on rate.
Is the Islamic option (Murabahah-i / Aitab-i) different from conventional Maybank or Public Bank car loans?
The profit rate (Islamic equivalent of interest rate) is structurally similar to the conventional rate at both banks. Maybank Murabahah-i (sometimes around 2.50% flat for new cars on the pre-HPAA basis) is slightly higher than conventional Maybank Hire Purchase (2.30% flat); Public Bank Aitab Hire Purchase-i is currently listed by RinggitPlus at 3.31%-4.10% p.a. on reducing balance. The material advantages of the Islamic versions: (1) mandatory Ibra' rebate on early settlement, fairer than Rule of 78 for any agreement signed before 1 June 2026, (2) Shariah-compliant for halal-conscious borrowers, (3) the contract structure is Al-Murabahah (cost-plus sale) rather than conventional loan-with-interest. For borrowers who don't have a halal-compliance requirement, the choice between conventional and Islamic comes down to early-settlement plans — if you might settle early, the Islamic version is mathematically friendlier on pre-HPAA agreements.
Last updated: May 2026. Rates and product details verified from RinggitPlus car-loan listings, Maybank Hire Purchase product page, Public Islamic Bank Aitab Hire Purchase-i product page, and ABM HPAA 2026 press release. Always confirm your personalised rate with the bank before signing.