17/06/2026
🚗 **Car Loan Interest Rates Are Changing in Malaysia!**
Did you know? Starting from June 2026, the familiar **2.5% car loan interest rate** may seem to "disappear"! 😱
Many buyers are surprised when they see the new **E.I.R (Effective Interest Rate)** displayed at **4% – 5%**.
❓ Wasn't it 2.5% before?
❓ Why does the rate suddenly look much higher?
The good news: **It doesn't necessarily mean your loan is more expensive.**
Previously, car loans were commonly advertised using the **Flat Rate** method.
Starting from June 2026, the industry is moving towards **E.I.R (Effective Interest Rate)**, which provides a clearer picture of the actual borrowing cost.
✅ More transparent interest calculations
✅ Easier comparison between banks
✅ Better savings when settling your loan early
✅ Interest calculated based on outstanding principal balance
The key point is:
**The interest rate number looks higher, but consumers can now see the real financing cost more clearly.**
📌 Swipe through the images to learn:
👉 Flat Rate vs E.I.R – What's the difference?
👉 Will monthly instalments increase?
👉 Will the total interest paid be higher?
👉 What should car buyers know before applying?
Need advice on:
✔ Personal Loans
✔ Debt Consolidation
✔ SME Financing
Feel free to PM us for a free consultation.
