Bank Release Letter for Car Shipping: A Complete Guide

Is your car still under a loan and you want to ship it to Sabah? Don't worry — it can still be done. What you need is a bank release letter, a consent document from the bank that authorises your vehicle to be transported out of Peninsular Malaysia.

Many Hantar Kereta Trading customers successfully ship their financed cars to Sabah every month. In this guide, we'll explain what a release letter is, the step-by-step application process, the duration by bank and tips to speed up approval.

1. What Is a Bank Release Letter?

A bank release letter (also known as a release letter or consent letter) is an official document from a financial institution that authorises a vehicle still under a loan/financing to be transported or moved to another location.

In the context of shipping a car to Sabah, this letter is required because a vehicle still under hire-purchase financing has the bank's ownership claim on it. On the geran (Vehicle Registration Certificate), your name is listed as the registered owner, but the bank/financing company remains the registered owner-claimant (holder of title) until the loan is fully settled — which is why the bank keeps the original registration card and its name must be cancelled (e-Batal) after the loan is paid off (refer to the JPJ guide to transfer of ownership, which states that a transfer of ownership cannot proceed if there is an outstanding financial-institution claim). Without a release letter, the port and the shipping line cannot accept the vehicle for loading onto the vessel.

This letter usually states: the owner's name, the vehicle registration number, the financing account number and the authorisation for the vehicle to be transported to Sabah or Sarawak within a specified period.

2. When Is This Letter Required?

A bank release letter is required in the following situations:

• The car is still under a hire-purchase loan — This is the most common situation. If you are still paying monthly instalments, you need this letter.
• The car is under Islamic financing (Al-Ijarah, AITAB) — Just like conventional hire purchase, Islamic financing also requires a release letter.
• A new vehicle whose loan is not yet settled — Even if the car is new, if it is still within the financing period, the letter is still required.

When it is NOT required: If your car is fully paid off and the vehicle registration card has been transferred entirely into your name (no bank name on it), you do not need a release letter. Simply prepare a copy of the geran and IC.

For the full list of documents required for shipping, refer to our how to ship a car to Sabah page.

3. Step-by-Step Application Process

Here are 7 easy steps to obtain a bank release letter for shipping a car to Sabah:

1. Contact your bank — Call the bank's customer service line or visit the nearest branch. Inform them that you need a release letter to ship a vehicle to Sabah.
2. Prepare the required information — The financing account number, the vehicle registration number, the owner's IC number and the purpose of the application (shipping a vehicle to Sabah).
3. Fill out the application form — Some banks require an official form, while others accept applications by phone or email. Ask the bank officer about the accepted application methods.
4. Submit the supporting documents — Usually required: a copy of the owner's IC, a copy of the vehicle registration card (geran) and a letter from the shipping company (which we will provide).
5. Wait for approval — The approval time varies by bank, between 3 and 10 working days. See the table in the next section.
6. Receive the release letter — The letter will be issued in writing. Make sure it states the name, the car registration number and the authorisation for shipping to Sabah/Sarawak.
7. Submit a copy to us — Send a copy of the bank release letter to Hantar Kereta Trading via WhatsApp or email. We'll handle the rest.

4. List of Banks & Approval Times

The approval time for a release letter varies by bank and the branch's workload. The estimates below (verified June 2026) are compiled for the major banks in Malaysia — each row links to the relevant bank's official page so you can confirm the latest procedure with the bank yourself. The actual time is not a fixed rate; contact your bank's Auto Finance Centre for confirmation.

About charges: Bank Negara Malaysia permits financial institutions to impose a service charge for issuing a release letter, consent letter (consent letter) or redemption statement (redemption statement) — so it is not necessarily free at every bank. Confirm the actual charge with your bank. Refer to the Bank Negara Malaysia guidelines on hire-purchase charges.

Note: The durations above are estimates based on applications we handle for customers; the originating branch that holds your loan file is usually faster than other branches. Banks with centralised approval (such as Bank Rakyat) typically take longer. Apply for the release letter at least 2 weeks before your planned shipping date so there's room for follow-up if needed.

5. Tips to Speed Up Approval

Based on our experience coordinating release letter applications with banks for customers, here are tips to speed up the approval process:

1. Make sure your monthly instalments are up to date — The bank will not approve an application if there are payment arrears. Check and settle any outstanding payments before applying.
2. Go to the originating branch — If possible, go to the bank branch where you first took out the loan. The process is usually faster because your file is already there.
3. Prepare all documents at once — Don't go to the bank without complete documents. Have your IC, vehicle registration card (geran) and financing account number ready before going to the branch.
4. Ask for a reference number — After submitting the application, make sure you get a reference number. This makes follow-up easier if approval is slow.
5. Follow up after 3 days — Don't wait until the shipping date is near. Contact the bank after 3 working days to find out the status of your application.

6. Related Costs & Charges

The release letter charge depends on the bank. Bank Negara Malaysia permits financial institutions to impose a service charge for release letters, consent letters and redemption statements — so don't assume it's free. Here are the costs to take into account:

• Bank Release Letter — The charge varies by bank; some banks impose no charge, some impose a service charge. Confirm the actual amount with your bank and refer to the Bank Negara Malaysia hire-purchase charge guidelines.
• Shipping Company Supporting Letter — We at Hantar Kereta Trading provide this supporting letter free of charge for our customers.
• Car Shipping Cost — Starting from RM 2,480 (port-to-port) for a sedan, the rate verified June 2026 and subject to change with the carrier's fuel surcharge/BAF. See the full cost breakdown in our cost to ship a car to Sabah article.
• Marine Insurance — Already included in our shipping price. No additional charge.

Important Note: Don't be fooled by companies that impose high "document processing charges" or "bank letter handling charges". At Hantar Kereta Trading, all documentation assistance is free for our customers.

7. Frequently Asked Questions

8. Summary of Steps

A bank release letter is one document, not an obstacle. Three things determine how smoothly it goes: the bank remains the registered owner-claimant until the loan is settled (so its consent is mandatory), the approval time of 3–10 working days depending on the bank, and a charge that varies by bank — confirm those two figures directly with your bank.

The key is to apply early — at least 2 weeks before the shipping date. Make sure your monthly instalments are current (arrears = the most common cause of rejection) and bring your IC, geran and financing account number all at once to the originating branch that holds your loan file.

At Hantar Kereta Trading (SSM 202603144686), we provide the shipping company's supporting letter free of charge and coordinate the submission of documents to the bank and the port so you don't have to go back and forth.

Also read: cost to ship a car to Sabah for budget planning, and the first-time guide to shipping a car to Sabah for an overview of the whole process.