Q & ACategory: LoanMalaysia Hire Purchase Interest Rate has not moved
Jay Yen Lim asked 3 years ago

I noticed that the hire purchase interest rate has not change much, or none at all from 1 year ago, even though BNM has lowered OPR by 1.25% since January this year. Can I ask why is this the case? Shouldn’t hire purchase rate also reflect changes to BNM policy rate, otherwise it does not encourage people to buy cars. In addition, banks’ cost of funds should also has fallen.

1 Answers
KCLau Staff answered 3 years ago

Hi Jay Yen, good question. But too bad I don’t know the reasons.