Who is eligible to apply for a federal government vehicle loan?

  1. Public service officers employed permanently.
  2. Officers serving under a contract. If the officer is still on probation period or serving under a contract, he /she has to be guaranteed by 2 officers from the Management and Professional Group and Support Group that have been confirmed in their positions.

What are the basic qualifying requirements for an officer to apply for a vehicle loan?

  1. Purchase vehicles that are permitted according to the qualification and ability of a particular officer.
  2. Need a vehicle to carry out official duty well.
  3. Total monthly installment deduction not exceeding 1/3 of basic salary.
  4. Total deduction including deduction for vehicle financing does not exceeding 60% of the the total basic salary and monthly allowance.
  5. The officer must have a basic salary of at least RM1,620 for car purchase.
  6. Possess a valid driving license.

What is the maximum limit of eligibility for a vehicle loan?

  1. Car purchase is according to job position 

    Position Loan Limit (RM)
    Main Position and Special Grade Position, Deputy Commission of Police until Inspector General of Police 70,000
    Management and Professional Group or Assistant Superintendent of Police up to Senior Assistant Commissioner of Police 65,000
    Support Group @ Inspector General of Police and below 55,000
  2. Purchase of motorcycle RM 5,000
  3. Purchase of motorboat RM 4,000
  4. Purchase of motorboat engine RM 3,500
  5. Purchase of boat RM 700
  6. Purchase of bicycle RM 500

How is the calculation for total loan that can be approved?

The total loan cannot exceed the net price of the vehicle and cannot include road tax payment, insurance payment and other additional payments or relevant optional accessories to the said vehicle. The net price of the vehicle is the vehicle’s sale price + excise tax + air-conditioner + rubber floor liners + mudguards. Except for loan to purchase a boat and a bicycle, the total loan money that is approved should be rounded up to a lesser hundreds figure in ringgit. For example, to purchase a car with a net price of RM59,993 and the said officer has maximum qualification to borrow:-
  1. If RM65,000 – the loan that can be approved is RM59,900.
  2. If RM55,000 – the loan that can be approved is RM55,000.

How long is the allowable period for maximum repayment?

Type of Vehicle Period
a) New car Not exceeding 108 months
b) Used car Not exceeding 95 months
c)  New motorcycle 
      -  Al-bail bithaman’ ajil principle

Not exceeding 72 months

       - Conventional principle Not exceeding 60 months
d)  Used Motorcycle Not exceeding 48 months
e) Motorboat Not exceeding 48 months
f)  Motorboat Engine Not exceeding 48 months
g) Boat Not exceeding 24 months
h) Bicycle Not exceeding 20 months

Can an officer make a second loan application?

Yes, every once in 5 years provided the 1st loan has completed 5 years and is fully settled (SPP 5 / 2001 with effect from 1 April 2001).

What action should be taken in order to avoid over deduction of salary of the borrower when the vehicle loan period has lapsed?

The borrower should submit the application for balance inquiry through his / her department for termination of deduction to JMS (a) / BPOPA (b) (whichever applicable). It is advised that he/ she submits the balance inquiry 3 months before the period lapses. This will enable the borrower’s department to make timely salary changes.
  1. Self Accounting Department (JMC) consists of the following Departments / Ministries:

    1. Prime Minister’s Department
    2. Ministry of Defense
    3. Ministry of Agriculture and Agro-based Industry
    4. Ministry of Education
    5. Ministry of Health
    6. Ministry of Interior
    7. Ministry of Information, Communication, Arts and Culture
    8. Ministry of Transport
    9. Ministry of Higher Learning

  2. Central Operation and Agency Services Department (BPOPA) at the Accountant General’s Department for Departments / Ministries not under JMS.

How can a borrower obtain entry cancellation of OWNERSHIP CLAIMED BY THE GOVERNMENT?

The borrower should obtain confirmation of loan balance from JMS / BPOPA (whichever applicable) through the Financial Division of the borrower’s department. The entries can only be revoked by the Road Transport Department when the borrower’s department issues a letter that the loan is duly settled.

Can an officer use the government vehicle loan to re-finance the loan for a vehicle purchased using a bank loan?

No, because the Vehicle Financing Scheme for Public Service Officers is for financing new loans only not re-financing. (Treasury’s Circular No. 7 / 1993 paragraph and No. 8 / 1993 paragraph 14.1).

What is the procedure for making early settlement for the vehicle loan balance?

1. Obtain confirmation of the loan balance through the balance inquiry process for the lump sum settlement / termination of deduction either through:-

a. Letter; The borrower has to fill a letter format of balance inquiry and send it to JMS / BPOPA (whichever applicable) through the borrower’s department. Feedback to this balance inquiry will be submitted to the Head Office of the borrower’s department.


b. Online services. Vehicle loan information, at the official website www.anm.gov.my where the borrower can key in details of personal loans. No need to go through the Head Office of borrower’s department. However, feedback on this balance inquiry will be submitted through the Head Office of the borrower’s department.

2. Subsequently the borrower will need to make payment based on the verified balance and comply with the specified date period:-

a. For loans under the Federal Vehicle Loan Fund, pay cash / bank draft payable to the Accountant General of Malaysia through the Financial Divison of the borrower’s department;


b. For loans under Government Vehicle Loan Scheme (GVLS) of Bank Simpanan Nasional BSN), pay directly to the BSN counter.