Malaysia Car Loan Interest Rates Increased

The car loan interest rates in Malaysia had been increased following the recent increase in the Bank Negara Overnight Policy Rate (OPR) a.k.a Malaysia interest rates bench mark. 

Interest rates on new non-national car loans has increased by an average of 0.25 percentage point while rates for new national car loans saw a hike of about 0.10 percentage point.

EON Bank Bhd said the bank’s revised interest rates for new non-national cars were 3.5% (5-year tenure), 3.75% (7-year) and 3.85% (9-year). Meanwhile, rates for new national cars now stood at 3.85% (5-year tenure), 4%

Malaysia's Banks Performing and Unaffected by Eurozone Crisis

The recent heavy sell down on the Malaysia stock market and causing the FBM KLCI to tumbles in the past 2 weeks are already picking up. 

Firstly, the main cause is the Eurozone debt crisis which involve Greece, Spain and Portugal, but up to date the International Monetary Fund (IMF) and the European Union (EU) had already bailout them by providing loans. 

Secondly, it was the huge quarter losses of plantation conglomerate Sime Darby. Up to now, Sime Darby share price had already slump down 12% in 2 weeks. The CEO of Sime Darby had also been removed. 

Thirdly,  as we know if the manufacturing sector is suffering a meltdown in demand from Europe, then this will indirectly affect the banks lending prospects, and this was not the problem, as the manufacturing sector in Malaysia is on a pick up trend. Furthermore, Malaysian banks also have no exposure to any of Europe’s papers or business interest.

Although interest rate hikes totalling 75 basis points in 2010, but those bankers are still confident on the loan growth and will be stronger than previous year. If not the Bank Negara will not raise the interest rates. And the inflation are not in pressure.

Thus, Malaysia Banks are fundamentally good and performing and are not in a worrying trend.