Public Bank Car Loan (Hire Purchase) Malaysia 2026: Rates, Calculator & Honest Review
Public Bank hire purchase from 2.45% flat (4.53% effective). Malaysia's largest private bank HP. Honest review covering rates, eligibility, Islamic option, monthly calculator, and who should choose Public Bank.
Quick Verdict: Public Bank Hire Purchase
Best for: Existing Public Bank customers, borrowers in Chinese-majority areas (Penang, Ipoh, JB) with dense PBB branch access, and applicants who prefer face-to-face banking with relationship-based credit assessment.
Not ideal for: Rate-first borrowers (Maybank is 0.15% cheaper at 2.30% flat) or fully digital applicants who want a mobile-first process (try CIMB instead).
Compare Public Bank hire purchase rates against all major banks on RinggitPlus — free, instant comparison, apply in under 10 minutes.
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Public Bank HP Rate vs Major Banks (2026)
Before choosing Public Bank, see how its hire purchase rate compares to the major alternatives. Remember: the flat rate column is what banks advertise; the EIR column is what you actually pay.
| Bank | Flat Rate (new cars) | EIR (approx.) | Min Income | Best For |
|---|---|---|---|---|
| Public Bank | From 2.45% | ≈4.53% | RM 2,000 | Existing PBB customers |
| Maybank | From 2.30% | ≈4.26% | RM 2,000–2,500 | Lowest rate, broad access |
| CIMB | From 2.40% | ≈4.44% | RM 2,000 | Digital-first applicants |
| RHB | From 2.50% | ≈4.63% | RM 2,000 | Used car buyers |
| AmBank | From 2.55% | ≈4.72% | RM 2,000 | Flexible used car terms |
Public Bank Car Loan Monthly Instalment Guide
Based on Public Bank's starting rate of 2.45% flat per annum. Actual rates may vary by car model, credit profile, and tenure. Use as a planning guide before visiting a branch.
| Car Price Range | Loan Amount (90%) | 5-Year / month | 7-Year / month | 9-Year / month | Typical Car |
|---|---|---|---|---|---|
| RM 40,000–50,000 | RM 45,000 | RM 900 | RM 678 | RM 565 | Perodua Axia, Bezza |
| RM 60,000–75,000 | RM 65,000 | RM 1,300 | RM 980 | RM 817 | Perodua Myvi, Ativa |
| RM 80,000–100,000 | RM 85,000 | RM 1,700 | RM 1,282 | RM 1,069 | Proton X50, Honda City |
| RM 110,000–130,000 | RM 115,000 | RM 2,300 | RM 1,733 | RM 1,445 | Toyota Vios, Honda Jazz |
| RM 150,000–180,000 | RM 150,000 | RM 3,000 | RM 2,264 | RM 1,887 | Toyota Corolla, Honda Civic |
Why Public Bank for Your Car Loan?
1. Malaysia's Largest Private Bank HP Network
Public Bank has over 260 branches across Malaysia — the largest private bank branch footprint in the country. This matters for hire purchase because car dealers often have direct relationships with specific bank branches. If your dealer's preferred financing partner is Public Bank (common in Chinese-majority commercial areas), you'll often get faster processing and competitive promotional rates.
2. Relationship Scoring for Existing Customers
Public Bank uses relationship-based credit assessment. If you already hold a Public Bank savings account, fixed deposit, or Public Mutual investment account, your existing banking history gives you a head start in the credit scoring process. This can mean faster approval, higher loan quantum, or marginally better rates compared to a new-to-bank applicant with the same income. Contrast with CIMB and Maybank, which use more algorithm-based, less relationship-dependent assessments for new customers.
3. Competitive Used Car Financing
For used cars, Public Bank's rates (2.80%–3.30% flat) are competitive with the market. Public Bank is generally willing to finance Approved Permitted (AP) cars and slightly older used vehicles that some banks decline. The branch network also means more flexibility in getting a relationship manager to assess edge cases on their merits rather than pure algorithmic rejection.
4. Islamic HP via PB Islamic
Public Bank's Islamic subsidiary (PB Islamic) offers Hire Purchase-i based on the Al-Murabahah principle. The profit rates are structurally similar to conventional HP, but you benefit from mandatory Ibra' (early settlement rebate) under BNM's guidelines — a concrete financial advantage if you plan to settle early. The branch network for PB Islamic covers most major towns and cities.
When Public Bank Is NOT the Right Choice
| Your Situation | Better Option | Why |
|---|---|---|
| Absolute lowest rate is your goal | Maybank (2.30% flat) | 0.15% cheaper — saves RM 840+ on RM 80K loan over 7 years |
| Prefer digital / app-based application | CIMB (CIMBClicks) | Fully digital HP application, no branch visit needed |
| Buying a secondhand luxury vehicle | AmBank HP | AmBank specializes in used car and Recond vehicle financing |
| No existing Public Bank relationship | Compare all banks | Without relationship scoring, Maybank or CIMB may offer equal or better rates |
Public Bank Car Loan Eligibility Criteria
| Criterion | Requirement |
|---|---|
| Minimum age | 18 years old (with guarantor if under 21) |
| Maximum age | 65 years at end of loan tenure |
| Minimum income | RM 2,000 gross/month |
| Employment type | Salaried, self-employed, business owner |
| Debt Service Ratio | Max 60–70% of net income (BNM guideline) |
| Credit profile | No active CCRIS adverse record; CTOS score acceptable |
| Down payment | Min 10% for new cars (up to 90% financing) |
| Car eligibility | New, used, and reconditioned cars; commercial vehicles on case-by-case |
How to Apply for Public Bank Hire Purchase
- Compare rates first. Use RinggitPlus to compare Public Bank's current HP rates against Maybank and CIMB before walking into a branch — rates can differ by car model and promotional period.
- Prepare documents. MyKad (front and back), 3 months' salary slips (or 6 months' bank statements if self-employed), latest EPF statement or EA form, and the vehicle's booking receipt or sales and purchase agreement.
- Existing PBB customers: Log in to PBe (internet banking) to submit a preliminary HP application. Bring the same documents to your nearest branch for processing.
- New customers: Visit the nearest Public Bank branch with your documents. Bring your most recent bank statements and any existing Public Bank account details to support relationship scoring.
- Wait for credit assessment. Public Bank typically processes hire purchase approvals in 1–3 business days for straightforward applications. Approval comes with a formal offer letter stating the final rate and terms.
- Sign the Hire Purchase Agreement. Review the agreement for the final rate, total amount payable, tenure, and early settlement clauses before signing.
Compare Before You Commit
A 5-minute comparison on RinggitPlus can confirm whether Public Bank's rate is competitive for your specific car, tenure, and credit profile. Takes less time than driving to a branch.
Apply NowPublic Bank vs CIMB vs Maybank: Side-by-Side
| Feature | Public Bank | CIMB | Maybank |
|---|---|---|---|
| Starting flat rate | 2.45% | 2.40% | 2.30% ✓ |
| Min income | RM 2,000 | RM 2,000 | RM 2,000–2,500 |
| Digital application | Partial (PBe) | Full (CIMBClicks) ✓ | Partial (Maybank2U) |
| Branch network | 260+ branches ✓ | 200+ branches | 400+ branches |
| Islamic HP option | PB Islamic ✓ | CIMB Islamic ✓ | Maybank Islamic ✓ |
| Relationship scoring | Strong ✓ | Moderate | Moderate |
| Best for | Existing PBB customers | Digital-first buyers | Lowest total cost |
Frequently Asked Questions
What is Public Bank car loan interest rate in Malaysia 2026?
Public Bank Hire Purchase starts from 2.45% flat rate per annum for new cars, which works out to approximately 4.53% effective interest rate (EIR). For used cars, expect 2.80%–3.30% flat (≈5.18%–6.11% EIR). Your actual rate depends on loan tenure, the car model, and your credit profile (CCRIS/CTOS score). The flat rate advertised is NOT the true cost of borrowing — always multiply by 1.85 to compare against personal loans or other banks on an equal basis. Check RinggitPlus for live updated Public Bank HP rates.
What is the minimum income for a Public Bank car loan?
Public Bank requires a minimum gross monthly income of around RM 2,000 for a hire purchase application. However, the actual loan amount approved depends on your Debt Service Ratio (DSR) — Bank Negara guidelines cap total monthly debt repayments at 60–70% of net income. If you're buying a RM 70,000 Perodua Myvi on 7 years at 2.45% flat, your monthly instalment is approximately RM 834. On a RM 2,500 net salary with no other debts, you're within DSR limits. For a RM 130,000 Honda City, you'd typically need RM 4,500–5,500 net income.
How do I calculate my Public Bank car loan monthly repayment?
Formula: Monthly Instalment = (Principal × (1 + Flat Rate × Tenure)) ÷ (Tenure × 12). Example: RM 60,000 loan at 2.45% flat over 7 years = (60,000 × (1 + 0.0245 × 7)) ÷ 84 = (60,000 × 1.1715) ÷ 84 = 70,290 ÷ 84 = RM 836.79/month. Total interest: RM 10,290. On a 9-year term: (60,000 × (1 + 0.0245 × 9)) ÷ 108 = (60,000 × 1.2205) ÷ 108 = 73,230 ÷ 108 = RM 678.06/month — but total interest rises to RM 13,230. Always compare total cost, not just monthly instalment.
Is Public Bank better than Maybank for a car loan?
It depends on your priorities. Maybank has a lower starting rate (2.30% flat vs Public Bank's 2.45%), which saves roughly RM 720–1,400 in total interest on a RM 60,000–80,000 loan. Public Bank wins if you're an existing Public Bank customer — the relationship scoring means faster approval and sometimes better terms. Public Bank also has the largest private bank branch network in Malaysia, making in-person service easier. If rate is your only criterion, Maybank is cheaper. If you already have Public Bank savings, fixed deposits, or Public Mutual investments, Public Bank HP is the simpler choice.
Does Public Bank offer Islamic hire purchase?
Yes. Public Bank offers Hire Purchase-i under its PB Islamic (subsidiary) — a Shariah-compliant Al-Murabahah-based product. The bank purchases the car and resells it to you at a fixed marked-up price (profit rate, not interest). Monthly instalments and profit rates are structurally similar to conventional HP. Key Islamic advantage under BNM guidelines: mandatory Ibra' (rebate) on early settlement, which means you pay less total cost if you settle before tenure ends. Conventional HP uses the Rule of 78 for early settlement, which front-loads interest charges. For Muslim borrowers who may want early settlement flexibility, Hire Purchase-i is mathematically better.
Can I apply for a Public Bank car loan online?
Public Bank allows online applications via PBe (their internet banking platform) for existing customers. New-to-bank applicants typically need to visit a branch to submit documents: MyKad (front and back), 3 months' salary slips, latest EPF statement or EA form, and the vehicle's sales and purchase agreement or booking receipt. Public Bank is more branch-focused than CIMB — if you prefer a fully digital process, CIMB's CIMBClicks app offers a smoother online HP experience. But if you already bank with Public Bank, the PBe application and existing relationship scoring make the process straightforward.
What is the maximum Public Bank car loan amount in Malaysia?
Public Bank typically offers hire purchase financing of up to 90% of the car's on-the-road price for new cars (meaning a 10% deposit is required). For used cars, financing is usually 80–85% of the valuation. The maximum approved loan amount depends on your DSR — Bank Negara caps total monthly debt at 60–70% of net income. There is no published absolute cap, but most standard car purchases fall within RM 20,000–RM 500,000. Luxury or commercial vehicles may require additional documentation. The dealer will typically work with Public Bank's credit team to structure the financing.
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