The maximum loan tenure as set by Bank Negara Malaysia is 10 years. However, banks will determine the repayment period based on your credit profile and amount borrowed – which can range between 6 months to 10 years. On average, most banks offer a loan tenure of 7 to 8 years.
Loan tenure is important to factor into your decision as it will help you calculate the amount of interest you are going to pay over your loan period. A longer tenure means lower instalments, but make sure it matches with what you are buying. For example, if a car’s value begins to drastically drop after the first 5 years, don’t take a 7-year loan.