Starting April, You Will Have to Pay More for Installments Due to Interest Rate Hike

Looks like consumers will have to fork out more money for their monthly bills after this.

As some of you may already be aware of, Bank Negara Malaysia (BNM) has raised the Overnight Policy Rate (OPR) by 0.25 per cent to the current 3.25 per cent, and it will directly affect the amount loan borrowers have to pay.

Source: bnm

According to Compare Hero, OPR is an overnight interest rate charged by a leading bank to a borrower bank. The chain effect will pass on to the consumers who are taking loans from the borrower banks.

Therefore, consumers buying a car, or servicing an existing housing loan may have to pay more due to the interest rate hike.

Source: simon har blogspot

Notices have already been sent out to loan borrowers as early as February 2018 and they are expected to follow the latest rates starting from April 2018. Also, consumers are advised to clarify with their respective banks regarding the latest installment payment amount to avoid unnecessary problems.

Netizens were irked by this news as this means that they’d have to squeeze more money from their wallet to settle their monthly installments.

“I’ve already received the notice months ago. Now I need to pay over a hundred ringgit more for my housing loan,” a netizen said.

“I received the notice last year and was given two choices. It’s either I pay a little bit more every month or I pay for an extra month for my installment,” another Facebook user said.

So guys, if you have yet to receive any notice from your banks, please clarify with them to avoid getting charged more for an outstanding amount! 

Also read: Expert Predicts M’sia Property Market Crash in 2018, House Prices will Drop Drastically