National Bank increased the Overnight Policy Rate (OPR) on 11 May and banks in the country have also increased their lending rates by 0.25%. If you have recently applied for a car loan, you will receive an interest rate on your car loan that is 0.25% higher than before.
The average interest rate for domestic cars is about 3% and after the rate increase, the rate could be about 3.25%. For imported cars, the interest rate was previously around 2.30% and after the rate hike it could be around 2.55%.
Of course, the bank will determine the interest rate on the loan depending on the borrower’s income, the amount borrowed and the initial purchase of the car, so the interest rate each person receives will vary.
Here is an example of borrowing RM60,000 and choosing a 9-year loan term. With the 0.25% increase in interest rate, you will need to pay approximately RM150 more per year or RM12.50 more per month.
Note! Only variable rate car loans and loans that have only recently been approved will be affected by the interest rate increase. If you have a fixed rate car loan and your car loan was approved last year or the year before, then the bank’s interest rate increase will not affect you.
