Complete Guide to Lorry Loans in Malaysia 2025: Fast Approval & Competitive Rates

Running a logistics or transport business in Malaysia means owning your own lorry is key to success. But buying a lorry requires a large amount of capital. This is why lorry loans have become the preferred solution for many logistics business owners.

Whether you are a new entrepreneur or an established owner looking to expand your fleet, understanding the detailed lorry loan process can help you make the best decisions.

This article will explain all the details about lorry loans in Malaysia, including application processes, required documents, eligibility requirements, and practical advice.

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Why Do You Need a Lorry Loan?

Build Your Own Fleet

Renting a lorry costs up to RM2,000-3,500 per month. Over the long term, this expense can buy several lorries.

By financing a lorry purchase, you can:

• Own an asset: The lorry belongs to you and can be resold or refinanced
• Reduce costs: Monthly payments are usually cheaper than rental
• Expand business: Accept more contracts and earn more income
• Build credit: On-time payments can build a good credit record

Seize Business Opportunities

When you receive large orders or transport contracts, you need to increase your lorries immediately. If you wait for bank approval (usually takes 2-4 weeks), you might lose the contract.

Fast approval lorry loans can get you funding within 1-3 business days, allowing you to seize opportunities.

Preserve Cash Flow

If you pay for the lorry in full, your company’s cash flow will be affected. If customers delay payment, you might face cash shortages.

Through financing, you can:

• Preserve cash for daily expenses (fuel, repairs, salaries)
• Handle emergencies (vehicle breakdowns, urgent repairs)
• Invest in other business opportunities

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Types of Lorry Loans in Malaysia

1. Hire Purchase Plan

This is the most common lorry financing method.

How it works:

• You pay a down payment (usually 10-30%)
• The remaining amount is paid in installments (36-84 months)
• After paying all amounts, the lorry is yours

Advantages:

• Lower application threshold
• Can finance used lorries (up to 10 years old)
• Fixed monthly payments, easy to budget

Suitable for:

• Sole proprietors
• Small logistics companies
• Owners wanting to buy used lorries

2. Business Loan

If your company is registered (Sdn Bhd), you can apply for a business loan to buy lorries.

Advantages:

• Higher loan amounts
• Can purchase multiple lorries at once
• More tax benefits

Suitable for:

• Registered companies
• Logistics companies wanting bulk purchases
• Enterprises needing large financing

3. Leasing Plan

Similar to renting a vehicle, but with an option to purchase at the end of the lease.

How it works:

• Pay monthly rent
• Choose to purchase or return at the end of the lease
• Suitable for short-term needs

Suitable for:

• Seasonal businesses
• Owners wanting to try different vehicle models
• Enterprises not wanting to hold long-term assets

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Lorry Loan Application Process (Detailed Steps)

Step 1: Assess Your Needs

Before applying for a loan, ask yourself a few questions:

What type of lorry do I need?

• 1-ton small lorry (delivery, courier)
• 3-5 ton medium lorry (building materials, groceries)
• 10-ton large lorry (containers, bulk cargo)

What is my budget?

• New vehicle price: RM60,000-350,000
• Used vehicle price: RM20,000-180,000
• Affordable monthly payment: Recommended not to exceed 30% of income

How much can I pay as down payment?

• Minimum 10-20% (most lenders require)
• Higher down payment means lower monthly payments and less interest

Step 2: Choose the Right Lender

Banks vs Professional Financing Companies

Feature	Banks	Professional Financing Companies (like Ing Heng)
Approval Speed	2-4 weeks	1-3 business days
Approval Rate	60-70%	high approval rate
Down Payment	20-30%	10-20%
Credit Requirements	Strict (CTOS 650+)	Flexible (CTOS 580+ considered)
Used Vehicles	5-7 years old	Up to 10 years old
Documentation	Complex	Simplified

Why choose professional financing companies?

• Faster approval: We understand the urgency of logistics businesses
• Higher approval rate: We value your repayment ability, not just credit score
• More flexible options: We can customize repayment plans based on your cash flow

Step 3: Prepare Required Documents

Sole Proprietors:

Personal documents:

• Identity card copy (MyKad)
• Last 3 months’ bank statements
• Residential address proof (utility bill)
• Driving license (if driving yourself)

Business documents:

• Business license (SSM registration certificate)
• Last 6 months’ business bank statements
• Income proof (invoices, contracts, receipts)
• If renting lorries, provide rental contracts

Companies (Sdn Bhd/Partnership):

In addition to the above documents, you need:

• Company registration certificate (SSM Form 9/49)
• Memorandum & Articles of Association
• Last 1-2 years’ financial statements (if available)
• Company bank statements (last 6 months)
• Directors’ identity card copies

Step 4: Submit Application

Online Application vs Offline Application

Online Application (Recommended):

1. Visit our website
2. Fill out the application form
3. Upload scanned documents
4. A dedicated person will contact you within 1 business day

Offline Application:

1. Contact us via WhatsApp: +60175700889
2. Schedule a meeting or visit the office directly
3. Bring all documents for on-site assessment
4. Receive preliminary approval results on the spot

Ing Heng’s Fast Approval Process:

• Day 1: Submit application and documents
• Day 2: We review and assess
• Day 3: Receive approval notice (high approval rate)
• Day 5-7: Sign contract, collect vehicle

Banks typically need 2-4 weeks, while we can approve your application within 1-3 business days.

Step 5: Vehicle Valuation & Inspection

Buying New Vehicle:

• Provide dealer quotation
• We work directly with dealers to simplify the process
• No additional inspection needed

Buying Used Vehicle:

• We arrange inspection (free)
• Check engine, body, documents
• Evaluate market value
• Ensure no outstanding loans or fines

Step 6: Approval & Contract Signing

After receiving approval notice:

1. Review loan terms: Carefully read interest rate, monthly payment, loan term
2. Sign contract: Hire purchase contract, guarantee documents, insurance documents
3. Pay down payment: Via bank transfer or cheque
4. Register vehicle: We assist with JPJ transfer procedures
5. Purchase insurance: Comprehensive insurance is mandatory

Step 7: Collect Vehicle & Start Repayment

After signing contract:

• New vehicle: 3-7 business days delivery
• Used vehicle: 1-3 business days delivery (after transfer completion)

Monthly repayment:

• Auto-debit (recommended)
• Cheque
• Bank transfer

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Lorry Loan Eligibility Requirements

Basic Conditions

Applicant Age:

• Minimum 21 years old
• Maximum 65 years old (at loan end)

Nationality:

• Malaysian citizen or permanent resident
• Foreigners need work permit (special cases)

Income Requirements:

• Sole proprietor: Monthly income at least RM2,000
• Company: Business operating for at least 1 year

Credit Record:

• CTOS/CCRIS score ideally 600+
• If below 600, we will assess your overall repayment ability
• No bankruptcy record

Ways to Increase Approval Rate

1. Provide Complete Income Proof

Banks only look at payslips, but the logistics industry has a lot of cash income. We accept:

• Customer payment records
• Invoices and receipts
• Bank statements (showing regular income)
• Transport contracts

2. Increase Down Payment Amount

Higher down payment means:

• Greater approval chance
• Possibly lower interest rate
• Easier monthly payments

3. Find a Guarantor

If your credit record is not perfect, you can find a guarantor:

• Guarantor needs stable income
• Good credit record
• Willing to take repayment responsibility (if you cannot pay)

4. Provide Collateral

Besides the lorry itself, you can provide:

• Property (increase loan amount)
• Fixed deposit
• Other vehicles

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Interest Rates & Monthly Payment Calculations

Malaysia Lorry Loan Interest Rate Range

2025 Market Interest Rates:

• New vehicle: 3.5%-5.5% (banks) / 4.5%-6.5% (financing companies)
• Used vehicle: 4.5%-7.5% (banks) / 5.5%-8.5% (financing companies)

Factors Affecting Interest Rates:

• Vehicle condition (new vs used)
• Vehicle age (newer means lower rate)
• Down payment amount (higher down payment means lower rate)
• Credit record (higher score means lower rate)
• Loan term (longer term may mean higher rate)

Monthly Payment Calculation Examples

Case 1: 1-ton Small Lorry (New Vehicle)

• Vehicle Price: RM80,000
• Down Payment (20%): RM16,000
• Loan Amount: RM64,000
• Interest Rate: 5.5%
• Loan Term: 60 months (5 years)

Monthly Payment ≈ RM1,220

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Case 2: 3-ton Medium Lorry (Used Vehicle)

• Vehicle Price: RM120,000
• Down Payment (25%): RM30,000
• Loan Amount: RM90,000
• Interest Rate: 6.5%
• Loan Term: 72 months (6 years)

Monthly Payment ≈ RM1,530

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Case 3: 5-ton Large Lorry (New Vehicle, Long-term Loan)

• Vehicle Price: RM250,000
• Down Payment (15%): RM37,500
• Loan Amount: RM212,500
• Interest Rate: 5.8%
• Loan Term: 84 months (7 years)

Monthly Payment ≈ RM3,180

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How to Reduce Monthly Payments?

Method 1: Increase Down Payment

• Increase down payment from 15% to 30%, monthly payment can reduce by 15-20%

Method 2: Extend Loan Term

• Extend from 5 years to 7 years, monthly payment reduces by about 25%
• Disadvantage: Total interest increases

Method 3: Buy Used Vehicle

• Used vehicle prices are 30-50% cheaper
• Monthly payments are naturally lower
• We provide financing for used vehicles up to 10 years old

Method 4: Negotiate Interest Rate

• Good credit record can争取 for lower interest rate
• Bulk purchases can get discounts
• Long-term customers get benefits

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New Vehicle vs Used Lorry Financing Comparison

New Vehicle Financing

Advantages:

• Lower interest rates (3.5%-5.5%)
• Vehicle condition guaranteed (manufacturer warranty)
• No inspection needed
• Longer loan term (up to 84 months)
• High resale value

Disadvantages:

• Higher down payment (20-30%)
• Higher monthly payments
• Fast depreciation in first few years

Suitable for:

• Owners with sufficient budget
• Fleets needing long-term use
• Companies emphasizing brand image

Used Vehicle Financing

Advantages:

• Cheaper vehicle price (save 30-50%)
• Lower monthly payments
• Slower depreciation (past rapid depreciation period)
• Can buy larger vehicle with same budget

Disadvantages:

• Higher interest rates (5.5%-8.5%)
• Inspection needed
• Possibly higher repair costs
• Short or expired warranty period

Suitable for:

• Entrepreneurs with limited budget
• Need to quickly expand fleet
• Owners with repair experience

Ing Heng’s Used Vehicle Advantages

We accept financing for used lorries up to 10 years old, while most banks only accept 5-7 years.

Used vehicles we can finance:

• 1-ton lorries: 8-10 years old
• 3-5 ton lorries: 7-10 years old
• Large lorries: 5-8 years old

Conditions:

• Good vehicle condition (passes our inspection)
• Normal engine and transmission
• No major accident records
• Complete documents (transfer records, maintenance records)

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Common Lorry Loan Questions

1. Can I apply without a formal company?

Yes! We accept applications from sole proprietors.

You only need:

• Business license (SSM)
• Business bank statements (showing income)
• Identity card and residential proof

2. My CTOS score is very low, can I still get approval?

Yes! Our approval rate reaches high approval rate.

Even if your credit score is below 600, we will comprehensively assess:

• Your actual repayment ability
• Business income stability
• Down payment amount
• Guarantor situation

Suggestions:

• Provide detailed income proof
• Increase down payment amount
• Find guarantor with good credit

3. How much can I borrow?

This depends on several factors:

Sole Proprietors:

• Loan amount is usually 3-5 times monthly income
• Example: Monthly income RM5,000, can borrow RM15,000-25,000

Companies (Sdn Bhd):

• More flexible loan amount
• Assessed based on company turnover and financial status
• Can apply for loans above RM100,000

4. How long after loan approval can I collect the vehicle?

New vehicle:

• 3-7 business days after signing contract
• Wait for dealer delivery and JPJ registration

Used vehicle:

• 1-3 business days after signing contract
• Can collect after transfer procedures completed

Emergency situations: If you have urgent transport contracts, we can expedite the process. Please inform us when applying.

5. What happens if I delay payment?

Late 1-15 days:

• Usually charge late payment fee (1-2%)
• Will not immediately affect credit record
• We will contact you to understand the situation

Late 16-30 days:

• Late payment fee increases
• May be reported to CTOS/CCRIS
• Need to contact us to negotiate repayment plan

Late more than 30 days:

• Seriously affects credit record
• May face legal action
• Lorry may be repossessed

Suggestion: If you foresee repayment difficulties, contact us in advance. We can:

• Rearrange repayment plan
• Extend loan term (reduce monthly payment)
• Temporarily reduce interest (special circumstances)

6. Can I pay off the loan early?

Yes! But some financing companies charge prepayment penalty.

Ing Heng’s Policy:

• Prepayment in first 12 months: May charge small processing fee
• Prepayment after 12 months: Usually no charge

Benefits:

• Save remaining interest
• Own lorry earlier
• Can refinance or sell

7. Can I sell the lorry during the loan period?

Technically no, because before the loan is paid off, the lorry ownership belongs to the lender.

But you can:

1. Pay off loan first then sell
2. Transfer loan to buyer (need lender approval)
3. Sell lorry and use proceeds to pay off loan

If you want to sell the lorry, please contact us first to discuss the best solution.

8. What insurance do I need to buy?

Must purchase:

• Comprehensive Insurance: Covers accidents, theft, natural disasters
• Third Party Insurance: Covers injury and property damage to others

Optional purchase:

• Cargo insurance: Protects transported goods
• Personal accident insurance: Protects driver and passengers

Insurance costs:

• New vehicle: 2-4% of vehicle price/year
• Used vehicle: 3-5% of vehicle price/year
• Example: RM80,000 lorry, insurance about RM2,400-3,200/year

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Why Choose Ing Heng Credit?

40 Years Industry Experience

Since 1985, we have focused on equipment financing, including lorries, excavators, forklifts, etc.

We deeply understand the challenges of the logistics industry:

• Customer delayed payments
• Vehicle sudden breakdowns
• Urgent transport contracts
• Seasonal income fluctuations

high approval rate Approval Rate

We value your repayment ability, not just credit score.

Even if you:

• Just started business
• Credit record not perfect
• Income not fixed
• No formal company

We will seriously evaluate your application.

Fast Approval Process

Banks: 2-4 weeks Ing Heng: 1-3 business days

When you have urgent transport contracts, speed is money. We understand this.

Flexible Financing Options

• Accept used vehicles up to 10 years old
• Down payment as low as 10%
• Loan term up to 84 months
• Can customize repayment plan based on your cash flow
• Seasonal businesses can apply for flexible repayment

Full Service

We don’t just approve loans, we also assist you with:

• Finding suitable lorries
• Arranging inspection (used vehicles)
• Processing JPJ transfer procedures
• Purchasing insurance
• Problem consultation during loan period

Chinese Service

We have Chinese-speaking staff who can communicate with you in your most comfortable language.

• Application process explained in Chinese
• Contract terms explained in Chinese
• After-sales service in Chinese

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Apply for Lorry Loan Now

3 Application Methods

1. WhatsApp (Fastest)

• Contact: +60175700889
• Send: I want to apply for lorry loan
• We reply within 1 hour

2. Online Application

• Visit: www.inghengcredit.com
• Fill out application form
• Upload documents
• Reply within 1 business day

3. Visit Office

• Address: [Office Address]
• Business Hours: Monday to Friday 9:00am-6:00pm
• Saturday: 9:00am-1:00pm
• Recommended to schedule appointment first

Pre-Application Checklist

Please prepare the following documents (photos or scans):

✅ Identity card (MyKad) ✅ Driving license ✅ Last 3 months’ bank statements ✅ Business license (SSM) ✅ Business bank statements (6 months) ✅ Income proof (invoices, contracts) ✅ Lorry quotation (if already selected)

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Conclusion

Buying a lorry is an important step in expanding logistics business. With the right lorry loan solution, you can:

✅ Quickly build fleet - 1-3 business days approval ✅ Preserve cash flow - Low down payment, flexible monthly payments ✅ Seize opportunities - Fast approval won’t miss contracts ✅ Own asset - Lorry belongs to you, can resell or refinance

Choose Ing Heng Credit, you will get:

• 40 years industry experience
• high approval rate
• Fast approval process (faster than banks)
• Flexible financing options
• Professional Chinese service

Contact us today to start your lorry financing application!

WhatsApp: +60175700889

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Information provided in this article is for reference only. Actual loan terms may vary depending on individual circumstances. Please contact us for personalized quotation.

Ing Heng Credit & Leasing Sdn Bhd - Your equipment financing partner since 1985.