Banks set to increase interest on car loan

Base on current situation of the economy downfall, several banks are believed to be raising interest rate on car loans and the move will be implemented today. This move is mostly affected Non-national car only. I got it from the star newspaper today, actually I did heard about that when I was in a car dealer shop.

As I understand, a flat rate of about 2.2% to 2.8% is charged on loans for non-national cars although the effective rate over the duration of the loan could be higher. increment that I heard is about 3.75%, it's more than 1%. Base on the purchase price you might need to pay extra RM100 if the loan amount is about RM75000. I think you will be asking why car loans should go up when the base lending rate to which housing loans are tied is on a downtrend. However, car loans are fixed rate loans and not tied to the BLR.

I still cannot find any updates from any bank on their web site, I think information updates system are still slow nowadays as this is a bad news that might affect the business. You might look for nearest bank for more information about this interest increment.