Maximise Your Car Loan Flexibility: How RHB VF-i Flexi Redraw Helps You Save More - Insights | Carlist.my
7 days ago
When it comes to financing a vehicle, most buyers are familiar with traditional car loans that come with fixed monthly payments and interest rates. However, RHB’s Vehicle Financing-i (Variable Rate) with the Flexi Redraw feature introduces a unique way for buyers to not only save on their car loan but also enjoy greater flexibility in managing their finances.
This might be especially appealing to those who might want to pay extra towards their loan to reduce interest or those who may need convenient access to funds in the future without taking out a separate personal loan.
The RHB VF-i Flexi Redraw feature is a key benefit for buyers looking for more control over their vehicle financing. Unlike traditional car loans, this financing plan allows you to make additional payments towards your loan principal, reducing your outstanding balance and therefore lowering the total interest paid over the term of the loan. However, the real advantage comes from the ability to "redraw" or withdraw these excess payments when needed, offering a cushion of financial flexibility.
The way it works is simple. When you make extra payments beyond your scheduled loan amount, the excess funds are held in a separate account, which you can access at any time. For example, if you make an extra payment to reduce your principal, and a few months later you find yourself needing additional funds for an unexpected expense, you can access the amount you’ve overpaid through the convenience of the Flexi Redraw option.
Pay Extra and Save on Interest
One of the primary benefits of the Flexi Redraw feature is that it allows you to reduce the total interest they pay over the life of the loan. By making additional payments toward the principal, you can reduce the outstanding balance, thus lowering the interest charges, making it a great option for buyers who have the financial flexibility to pay more upfront or prefer to pay off their loan early to save on long-term interest costs.
For example, if Faiz has taken out a car loan with the RHB VF-i Flexi Redraw and he makes an extra payment of RM5,000 towards his loan principal after receiving a year-end bonus, this reduces his outstanding balance, and over the next few months, he notices a decrease in the interest he is charged. Later, if Faiz faces an unexpected car repair bill or needs cash for an urgent family event, she can redraw the RM5,000 (or part of it) without the need to apply for a new loan.
Access Extra Funds When Needed
Life doesn’t always go as planned, which is why Flexi Redraw is particularly advantageous when one faces unexpected financial needs during the course of their loan repayment such as the need for emergency funds for home repairs or medical bills.
With a traditional loan, these expenses might force you to take out a personal loan or otherwise put your finances under pressure. However, with the Flexi Redraw feature, you can simply access the funds you’ve already paid into your vehicle financing without the hassle of applying for a new loan or incurring extra interest.
Should John, for example, who is financing a car with the RHB VF-i Flexi Redraw, face unforeseen medical expenses a few months into his loan; instead of applying for a personal loan or using high-interest credit cards, John accesses the RM3,000 he has already paid into his car loan. This helps him cover his medical costs while avoiding the additional financial burden of a new loan.
Flexibility in Managing Finances
The Flexi Redraw feature from RHB offers unmatched flexibility, allowing you to choose when and how much extra to pay, tailoring your car loan repayments to your personal financial situation. Plus, there are no penalties for early repayment or for withdrawing excess funds, which further enhances its attractiveness compared to traditional loans that may impose fees for early settlement.
If you, as an example, prefer to pay extra whenever there is additional income, why shouldn’t you? With the Flexi Redraw feature, you're able to pay extra in months when you come into a higher income, say, from freelance work. When a slower month approaches, you can choose to withdraw part of the funds overpaid to balance expenses, giving you the flexibility to manage cash flow more effectively.
Competitive Rates and Flexible Terms
Additionally, with RHB VF-i Flexi Redraw, you also benefit from competitive interest rates and flexible financing terms, which can be tailored up to 9 years, and the financing rates are designed to offer savings, especially if you make extra payments and reduce your principal early on. The loan is based on a variable rate, so while there’s an initial saving on rates, it also gives you the flexibility to take advantage of any future reductions in the benchmark rates.
See, in contrast to the typical flavour of car loans/financing, which usually have fixed monthly payments and a rigid repayment/payment schedule, the Flexi Redraw option introduces flexibility that can make a significant difference in how you manage your vehicle financing. The ‘typical’ option often involves rigid repayment/payment structures that don’t allow for extra payments or withdrawals. If you wanted to pay off your loan/financing faster or reduce your principal, for example, it would generally require negotiating new terms or paying early settlement fees.
Moreover, traditional loans/financing don’t offer a facility for withdrawing extra payments, so if you need funds in an emergency, you might have to resort to higher-cost solutions, such as personal loans/financing or credit card debt. This limitation is something the RHB VF-i Flexi Redraw feature addresses efficiently by giving you easy access to your overpaid funds whenever you need them.
RHB’s Vehicle Financing-i with the Flexi Redraw feature offers a unique and flexible way to manage your vehicle financing. By allowing you to pay extra to enjoy profit charges discount and having the flexibility to withdraw excess funds when you need them, this financing option stands out from traditional car loans/financing.
The RHB Vehicle Financing-i (Variable Rate) Flexi Redraw is available to individuals aged between 18 and 65 years old, as well as sole proprietorships, partnerships, private limited and public limited companies. To qualify, applicants must seek a minimum financing amount of RM150,000 or above for new, new unregistered reconditioned and used fuel-powered vehicle or minimum financing amount of RM150,000 up to RM500,000 for new and new unregistered reconditioned Hybrid, Plug-in Hybrid and Electric Vehicle.
It is important to note that the profit charges discount on the excess payment made is capped at 50% of the total original financing amount. Withdrawal transaction is to be performed over-the-counter and each withdrawal is subject to an RM18.50 withdrawal fee, with a minimum withdrawal of RM2,000 and in multiples of RM1,000.
Whether you’re looking to save on interest/profit charges, prepare for future financial needs, or enjoy the flexibility of adjusting payments based on your financial situation, RHB’s Flexi Redraw feature provides a valuable and innovative solution to modern vehicle financing.
Enquire at your nearest RHB Branch or . Terms and conditions apply.
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