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Electric vehicle (EV) loans in Malaysia are similar to standard hire purchase agreements for cars, but often come with special packages tailored for EVs
These packages typically feature lower interest rates and additional perks, reflecting the country’s growing adoption of EVs. Thus, it’s slightly different from Malaysia’s usual car loan interest rates.
With global brands like Tesla entering the Malaysian market and government initiatives promoting green technology, banks are offering preferential financing rates to encourage sustainable transportation.
EV loans generally have lower interest rates than traditional car loans. This is due to banks’ promotional support and alignment with sustainability goals. As a result, financing an EV can be more cost-effective than buying a petrol-powered vehicle.
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EV Car Loan Interest Rates – Comparison of Top Banks (2025)
Overview of Interest Rates
Below is a comparison of EV loan interest rates offered by major banks in Malaysia:
| Bank | Interest Rate (p.a.) | Key Features |
| Maybank | From 1.98% (fixed) | Special rates for Tesla models, up to 90% financing, 9-year max tenure, 0% promo for selected models. |
| CIMB | From 2.38% | Includes RM300 EV charging credits and discounted home charger installation. |
| AmBank | ~2.40% | The estimated rate for Tesla partnerships; competitive for other EV models. |
| BSN (MyAuto-i) | 2.30% fixed or floating SBR + 1.49% (~2.49%) | Islamic financing with high margins and Shariah-compliant terms. |
| Public Bank | ~2.50% | Standard rates; may include promotions for specific EV brands/models. |
The lowest advertised rate is Maybank’s 1.98%, particularly for Tesla models, while most other banks offer rates in the low-to-mid 2% range.
Why Are EV Loan Rates Lower?
Banks’ Green Incentives
Many banks in Malaysia offer lower interest rates on electric vehicle (EV) loans as part of their commitment to supporting green technology and sustainability goals.
These lower rates are designed to incentivize environmentally friendly consumer choices. By financing EVs at reduced margins, banks align themselves with global efforts to reduce carbon emissions and promote eco-friendly transportation.
EV buyers are often considered a desirable segment due to their higher creditworthiness, making it less risky for banks to offer competitive rates.
For instance, a conventional car loan might have an interest rate of ~3.0%, whereas an EV loan could be as low as ~2.4%, saving borrowers thousands over the loan term.
Government Policies
While Malaysia does not directly subsidise EV loan interest rates, government initiatives such as import duty exemptions and sales tax waivers for EVs make ownership more affordable overall.
Banks leverage these policies to align their financing packages with national sustainability goals. For example, the Green Technology Financing Scheme (GTFS) supports green initiatives, indirectly benefiting EV buyers by making financing more accessible.
Risk Factors and Resale Value
From a bank’s perspective, EVs have high upfront costs but also potentially high resale value for popular models like Tesla or Nissan Leaf.
This reduces the financial risk associated with lending for EV purchases. Additionally, EV buyers often have strong credit profiles, lowering the default risk.
One concern is battery depreciation, which can impact the resale value of EVs.
However, banks address this by offering shorter loan tenures or requiring higher financing margins rather than increasing interest rates.
For example, some banks may cap financing at 85–90% of the car’s value to mitigate risks tied to battery wear and tear.
Key Features and Perks of EV Financing Plans
Electric vehicle (EV) loans in Malaysia come with more than just competitive interest rates. Banks often bundle additional benefits to make EV ownership more appealing and cost-effective. These perks can significantly offset the upfront and operational costs, adding value beyond the interest rate itself.
Common Perks Offered by Banks
Free/Discounted Charger Installation
Many banks include home charger installation as part of their EV financing packages. For example:
- Maybank: Offers coverage for home chargers through Etiqa insurance, with benefits up to RM12,0001.
- CIMB: Provides discounted home charger installation or credit as part of its EV loan program2.
This perk is particularly valuable for first-time EV buyers who may not have charging infrastructure at home.
Charging Credits
Banks also provide incentives in the form of charging credits:
- CIMB: Includes RM300 worth of EV charging credits1.
- Maybank: Offers ParkEasy credits ranging from RM200 to RM3001.
These credits reduce the running costs of EVs, making them more affordable over time.
Specialised Insurance Packages
EV loans often come with tailored insurance policies that address specific needs, such as battery coverage:
- Banks may offer discounted or bundled insurance plans, including coverage for high-cost components like batteries.
This ensures peace of mind for owners, mitigating concerns about expensive repairs.
Fast Approval or High Financing Margins
Banks streamline the approval process for EV loans and maintain high financing margins:
- Many banks offer up to 90% financing for EVs, similar to regular car loans.
- Quick processing times—such as CIMB’s ~8-hour approval—make purchasing an EV hassle-free2.
These features help buyers secure their vehicles quickly while minimizing upfront financial strain.
How These Perks Offset Costs
These benefits can significantly reduce the overall cost of owning an electric vehicle:
- Charging credits directly lowers operational expenses.
- Free or discounted chargers eliminate the need for costly installations.
- Specialised insurance reduces long-term maintenance risks associated with battery replacements.
For example, a slightly higher interest rate might be worth considering if it includes valuable perks like free home charger installation. Buyers who lack charging infrastructure at home would find this particularly beneficial.
Advice for Comparing Financing Options
When comparing EV loan packages, consider both the interest rates and bundled perks:
- If a bank offers a lower rate but no additional benefits, it may not be the best option if you need extras like a home charger.
- Conversely, a loan with slightly higher interest but comprehensive perks could save you money in the long run.
Tailoring your choice to your specific needs, such as whether you already have access to charging infrastructure, can help maximise the value of your financing plan.
How to Choose the Best EV Car Loan for You
Selecting the right electric vehicle (EV) car loan in Malaysia requires careful consideration of several factors, including interest rates, perks, eligibility requirements, and terms. Here’s a detailed guide to help you make an informed decision.
Consider the Interest vs Perks
When comparing EV loans, it’s essential to weigh the interest rate against any included benefits. For example:
- Maybank offers a low rate of 1.98% p.a., but it’s limited to Tesla models. If you’re buying a Nissan Leaf, you might find CIMB’s 2.38% p.a. more appealing due to its added perks like RM300 charging credits.
- Choose a loan that aligns with your car model and lifestyle needs. Sometimes, a slightly higher interest rate with valuable perks (e.g., free home charger installation) can save you more in the long run.
Check Eligibility & Terms
Before applying for an EV loan, ensure you meet eligibility requirements:
- Promotional rates may have specific conditions, such as minimum down payments or shorter tenures. For instance, Maybank’s 1.98% rate might require a 5-year loan term.
- Banks assess your debt service ratio (DSR) to determine affordability. Since EVs are generally pricier than petrol cars, ensure your financial profile can handle the higher upfront cost.
Loan Tenure Strategy
Opting for a shorter loan tenure is often beneficial:
- While longer tenures (up to 9 years) reduce monthly payments, shorter terms minimise total interest paid.
- EV technology evolves rapidly, and battery warranties typically last ~8 years. Aligning your loan term with this timeframe ensures you’re not paying off an outdated vehicle.
Down Payment Considerations
Electric vehicles come with higher price tags, making down payments crucial:
- A larger down payment reduces the principal amount financed, saving on interest costs over time.
- Most banks require at least 10% down payment for EV loans, similar to regular car loans. However, some promotions may allow higher financing margins (e.g., up to 90%).
Shop Around and Ask Dealers
Comparing multiple offers is key to finding the best deal:
- Tesla buyers should explore panel banks like Maybank and CIMB for exclusive promotions.
- For other EV brands, check if dealerships have partnerships with specific banks offering tailored financing packages.
- Some dealers may offer leasing options or bundled maintenance plans that could be more cost-effective depending on your needs.
Conclusion
Choosing the right EV car loan involves balancing competitive interest rates with practical perks and ensuring the terms align with your financial situation and vehicle choice. By carefully evaluating these factors and shopping around for the best offers, you can maximise savings while enjoying the benefits of sustainable transportation.
