Proton Credit launched – dedicated financing arm to offer Proton customers car loans without going through banks

Proton has launched a new automotive financing company called Proton Capital. The automaker says its new entity will provide customers an additional route to owning a Proton vehicle by complementing the options currently available in the automotive finance market.

Working closely with the company’s authorised dealer network, the company aims to provide a more integrated, efficient and customer-focused financing experience, from making an application to vehicle delivery.

At point of launch, Proton Capital will offer conventional hire-purchase financing for new Proton vehicles, including a standard fixed-rate package and a dedicated package for the Proton S70 in the Teksi Madani programme.

The company added that it plans to introduce more products progressively, including financing designed for e-hailing customers. A Shariah-compliant financing option is targeted for introduction in early November, subject to product availability and the relevant terms and conditions.

In terms of its workings, that of Proton Capital is similar to BMW Credit and Mercedes-Benz Financial Services. Both offer financing options like EasyDrive and Agility with Guaranteed Future Value, and/or balloon or step-up financing, although it remains to be seen if Proton Credit will have similar solutions to make car ownership more affordable.

That could possibly come further down the road, as intimated by Proton Capital CEO, Song Tao. “We will begin with standard hire-purchase products and expand our offerings as we better understand the needs of different customer groups,” he said.

The official introduction of the company also saw the formal authorisation of 10 dealerships that will offer Proton Capital services. During its initial phase, the financing arm will serve eligible individual customers purchasing new Proton vehicles through 12 participating outlets in the Klang Valley.

Applicants may include salaried employees, self-employed individuals and customers with other verifiable sources of income. According to Proton Capital, each application will be assessed individually, taking applicants’ income, existing financial commitments, credit information and repayment affordability into consideration.

The company said that no application fee will be charged for submitting a financing application. Any stamp duty, statutory charges, insurance or takaful premium, registration charges and other applicable fees will be disclosed in the relevant product disclosure sheet before the financing agreement is signed.

All approvals remain subject to the company’s prevailing credit policies, required documentation and applicable terms and conditions. For complete and straightforward applications, Proton Capital aims to provide an initial decision within one working day, while applications requiring additional documents, verification or further credit assessment will take a little longer.

For successful applicants, monthly instalments may be paid through online banking or DuitNow transfer using the unique CIMB Bank account assigned to the financing account while a direct debit option is also available. Customers are also encouraged to insure their vehicles using the Proton Insurance Program for total protection, subject to successful vehicle registration.

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