To secure loan, normally bank looks for active income.
For those have high networth, FD or investment can be used as collateral, but those may be "earmarked" until loan is cleared.

For car loan, no way bank will lend out 0%, impossible.
Those 0% car loan normally given out by car saler intends to sell the car.
If do not opt for the 0%, one actually can ask for discount. So no different much with 0% car loan.
In the end of day, no free lunch. 0% loan is more marketing gimmick.

For "FIRE", means one is retired, means you don't want any monthly commitment to pay loan already but used remaing fund or passive income to sustain routine daily expenses.
So taking loan at this stage generally not recommended.

While I know banks are not going to give 0% car loan, I did a lot of 0% cash loan from banks (usually within a year) and I just parked somewhere with >3% interest which is secured and can withdraw anytime soon.
0% car loan actually slightly edge out vs discount, but I opt for more discount instead of 0% car loan since company is paying the interest for me.

Betulkah bro?
You did a lot of 0%cash loan from banks???
What did you give to bankers to get 0% cash loan???

Phone number. They offer then just take and pay installment.

While some of you guys in here already retired, looks like many not buying big ticket items or only buy cash that’s why it’s not an issue.

As for myself, I have faced this issue for more than a decade because being employed by a company not established in Malaysia. I have asked about ASNB as collateral, most banks don’t accept except there’s one bank that I came across (was it CIMB? Can’t quite remember) and it’s only limited to a certain percentage (maybe like 20% not as collateral but approval on amount to be able to loan I think…I don’t proceed so it’s not really a real transaction per se).

So for my case, yes it’s all about cash buy. I have asked the dedicated LHDN officer assigned to me (yes, I have one and I go to meet her every year. lol. What a life ) when we talked about this a decade ago. I buy cash not a problem in my case even big ticket items…in fact I paid cash for my > 100k car at that time. If the system flags my cash purchase, it will be directed to the LHDN officer assigned to me. She said my declarations all in order so there’s nothing to worry…except to save up big amounts if I wanna buy anything big sum. lol. Talk about being treated third class in own country as I can’t apply credit cards as well (I have existing since years back and those are ok. But I do know some banks allow but it’s a big big hassle to prove with supporting documents) and others.

Just sharing my experience here…not to brag. Cheers.

While I'm not sure how getting loan will avoid raising red flag in LHDN, I personally don't think getting loan nor pay cash will cause the red flag. Almost every time of my big ticket item, I will get another audit from LHDN. Even the most recent my car also raising the red flag. I'm just employed and max out most of the reliefs, so almost no case for them to waste money on me. I'm not sure raising the red flag is called for audit or whether there is any other example of this.

I bought 2 houses so far. The first one was 3rd year after working and I think it was a very big downpayment. I got LHDN letter asking where money comes from. Replied in writing (at that time no email yet. lol) Second one 30-yr loan and no letter received. Also bought 2 cars, first one loan and second one cash. Both no letter received.

From my conversation with the officer, basically big ticket will flash alarm but it will be directed to officer (Malaysia case usually grouped according to zoning). Officer will review and then decide whether to proceed or not to send letter. (Disclaimer: conversation took place more than a decade ago and nowadays new Govt new SOP may work differently )

This post has been edited by OPT: Nov 25 2025, 01:53 PM

And I think depends on which is your LHDN office only and unfortunately I use my hometown one and their officers seems to be having more time than should I change it back to where I'm working.

I went through that in the past...been so long by now. I think you can go to the nearest office and talk to the officers to get your transferred over. Or was it based on your residence when filing...

I can't share as I aim to be debt free.

Like Japanese carry trade. Loan form Japan at around 0-1%p.a buy tech stocks in US.

seriously?
you really get bank loan at 0%?
or just credit card balance transfer facility..


if bank really can give 0% loan, sure must take
simply put in FD also earn already.

but where got free lunch like that...

Wow,... so many things written since.

Well, I'm referring to my inputs in 2 pages before the above.

Then, if one does not have this and does not have that, then do it the hard way-lor,... if one still wishes to get the US Visa. I mentioned abt getting the US Visa as a spontaneous eg of the negative possibilities of declaring one is 'retired' or one is 'unemployed'. I did not fathomize that this could branch out so far till the point of needing to lie to get the US Visa and to face immigration issues... (sigh)...

Nobody is talking abt lying here or attempting to lie here and then 'koyak'.

I have many friends who are able to prove they still have mechanisms of income-generating capability beyond retirement. Perhaps not only in the form of sole proprietorships, but certainly in other forms too.

Guessed your friends and my friends are different. (smile)

Card BT and EzyCashcash on call also got, still same like loan right, just put FD already earn. Some bankers actually got monthly credit quota, and they usually offer low interest, but sometimes 0% - so depends on luck. It's still just loan, you need to pay back. Once you cannot pay back within the stated time, then that is how banks earn money.

This post has been edited by jasontoh: Nov 25 2025, 04:27 PM

bro yes that is the point..WHEN and IF they got asked...how?

your frens all got supportive docs to back up
what they declared sure ok bro.

now you tell........
all the while i suspected that was it

bank loan 0% tak da lah...

based on credit card yes, i agree ada.
and if you know the lobang,
can even swipe card take cash out lagi syiok.

I have been buying my cars cash for well over a decade now and so far no issues or audit from LHDN (I currently have a few mil worth in cars - yes its one of my sins). Also if your taxes are in order, there is no fear of an audit. Some say it's troublesome or stressful but just send them whatever they want or need. You only need to stress and worry if you have something to hide.

Conflicting signals out there, bros,... but thank you for sharing.

Go google if you don't belive me. Japanese govt is the only country still with negative interest. Google Japanese carry trade. They pay either 0.5-1%p.a

if you pay cash RM500k for a car, i think that is a red flag to LHDN.
i wont pay cash 500k,, too risky unless you are paying tax that amount also every year.

mind i ask how much cash you paid when buying a car, 1 car.

My first car I bought cash was in 2012. It was around RM430k and even back then no audit letter issued to me. My more recent big car purchases have been over RM500k per car.

This post has been edited by GeekinE90: Nov 25 2025, 05:09 PM

bro we are talking about taking bank loans from malaysia banks

tell me which bank here gives you loan at 0%.

banks want to make money from you
no free lunch