The car owners might have to pay an extra 0.25% in car loan interest if they buy a car after September.
You might have to pay an extra 0.25% of the interest on the auto loan if it’s too late to buy a car in September.
After Bank Negara revealed that the economy of the nation expanded by 8.9% in the second quarter, speculation of a rate increase in September increased. Interest rate increases from Bank Negara are typically predicted to be at least 0.25% higher in September.
On September 8, Bank Negara will convene a monetary policy meeting. Following the meeting, the bank will decide whether to increase the overnight policy rate (OPR) once more. Domestic banks will announce rate increases within a week if Bank Negara raises interest rates.
If your auto loan has been approved, but your new automobile hasn’t yet arrived. In this situation, the Bank Negara rate increase will result in higher interest rates on your auto loan. You would have to pay more interest on your auto loan if you don’t buy a car before the interest rate increase.
Here is an illustration of an RM60,000 loan. You will pay RM680 each month for the loan’s 9-year term at an interest rate of 2.50% on a car loan. You will have to pay RM693 every month once the interest rate was increased by 0.25%, which is 2.75% of the new vehicle loan rate. A monthly payment of RM13 is furthermore necessary.
Paying an additional RM13 each month may not seem like much at first, but after 9 years—or 108 months—of borrowing, you will need to pay a total of RM1,404.
