Higher car loans for civil servants

Government employees are eligible for higher car loans and longer repayment period with immediate effect, in a move to boost car sales.

The Government has also allowed government servants to extend their housing loan repayments for their first property from 25 to 30 years.

Those who took or plan to take housing loans for a second property can now make repayments within 25 years, compared to 20 years previously.

These special benefits for 1.1 million government employees were announced by the Treasury in separate directives on Nov 28.

Treasury secretary-general Tan Sri Dr Wan Abdul Aziz Wan Abdullah said civil servants in the top management category, including the Inspector-General of Police right down to the Deputy Commissioner of Police, would now be entitled to a RM70,000 car loan against RM60,000 previously.

Those in the management and professional categories would be eligible for a RM65,000 car loan compared to RM55,000 previously.

Civil servants in the Support Group who make up the bulk of the civil service will get RM55,000, against RM45,000 then.
They include chief inspectors and those in the rank and file.

Wan Abdul Aziz said those earning below RM1,620 per month would also be able to apply for the car loans if they were required to travel extensively in the course of their work.

“However, the particular employee’s monthly instalments should not exceed one-third of his salary. Also, this employee must be certified by a medical board as being unfit to ride a motorcycle,” he said.

However, the loan eligibility for civil servants to buy motorcycles was retained at RM5,000.
These new measures have generally gone down well with civil servants.

Teacher Harvinder Kaur, 42, said the benefits announced recently by the Government would motivate government employees to work even harder.

Clerk P. Chelliah, 36, said he would consider changing his old Proton Saga to a newer model, with the increase in loan eligibility and repayment period.

“Since my existing car is already nine years old, the new scheme is a good reason for me to get new wheels,” he said.