Remember in my previous blog, I said that Bank Negara (Malaysia Central Bank) will be reducing its OPR (Overnight Policy Rates)?
As such it will bring about the reduction of the base lending rates and banks will automatically reduce the loan repayment amounts of their customers and this will be completed by the first quarter of this year.
However, borrowers also had the option of maintaining their monthly installment amounts and have a shorter loan repayment period. (this is a good thing!!!. Otherwise you only continue stretching the loan repayment period which is bad for you). Therefore, it is very important to note that borrowers who wish to maintain their current loan repayment amounts need to get in touch with their banks IMMEDIATELY.
The move by all commercial banks to cut instalment amounts follows the request by the Government to help borrowers facing difficult economic times. “Lower monthly loan repayment instalments will allow for more disposable income to be in the hands of the public" says ABM (Association of Banks in Malaysia)
Read more by clicking the link below.
Source: The Star
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2 comments:
I don't see the difference if you have one of those flexi-plans that has like another account tied to your main loan account. Whatever amount is in the flex account will offset the interest of the loan. It does make a difference in the length of the loan because the banks will calculate the amount to be taken out based on the interest rate and the length of the loan. The bad thing about asking the bank to maintain is that you lose the flexibility of taking that additional amount in case of an emergency. Since there's no actual difference in the interest paid, I would suggest to maintain more money in the linked account for flexibility purpose. This is at no cost to the loaner.
Hi, with daily rest daily compounded loan you can just pay any extra mount & get yr prinsipal dededucted.
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