How much salary do you need for a RM200k car loan

A RM200,000 recond SUV or MPV is a big purchase. Before you fall in love with a Harrier or Vellfire, it helps to know what the bank will look at.

Step 1: the monthly instalment

Car loans in Malaysia (hire purchase) use a flat rate:

• Loan = price − down payment
• Total interest = loan × rate × years
• Monthly = (loan + total interest) ÷ months

For a RM200,000 car with 10% down, 3.0% flat and 9 years:

• Loan: RM 180,000
• Interest: RM 180,000 × 3% × 9 = RM 48,600
• Total payable: RM 228,600
• Monthly: RM 228,600 ÷ 108 = RM 2,117

Step 2: your DSR

Banks divide all your monthly commitments by your income. This is the Debt Service Ratio (DSR). Our calculator treats below 60% as likely, 60 to 70% as borderline, and above 70% as unlikely. Every bank sets its own limits and many look at net income, so treat these as a guide.

Worked examples

Monthly instalment for a RM200,000 car at 3.0% flat:

Down payment	5 years	7 years	9 years
10% (RM 20,000)	RM 3,450	RM 2,593	RM 2,117
20% (RM 40,000)	RM 3,067	RM 2,305	RM 1,881
30% (RM 60,000)	RM 2,683	RM 2,017	RM 1,646

Minimum gross salary for a DSR under 60%, with 10% down over 9 years (instalment RM 2,117):

Existing commitments	Salary needed
RM 0	about RM 3,530
RM 1,000	about RM 5,200
RM 2,500	about RM 7,700
RM 4,000	about RM 10,200

How to improve your chances

1. Pay down credit cards before applying. Banks count the minimum payment.
2. Put more down. Each extra RM 10,000 cuts about RM 118 a month over 9 years.
3. Choose a longer tenure to lower the instalment (you pay more interest overall).
4. Show stable income: payslips, EPF statements and, for business owners, bank statements and Form B.
5. Apply to several banks at once. We do this for you.

Try your own numbers

Use the loan calculator with your salary and commitments. When you are ready, send the result to us on WhatsApp and we will check it with our banks.