Fourteen of 20 banks now offer reducing balance hire-purchase financing, says Armizan
BATU KAWAN, Sept 19 — Fourteen of the 20 banking institutions providing hire-purchase financing had begun offering...
As of September 18, 14 out of 20 banking institutions providing hire-purchase financing have started offering the reducing balance method, according to Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali. The remaining six banks are expected to complete the transition by December 31 at the latest, with full compliance required from April 1, 2027.
The reducing balance method, introduced by amendments to the Hire-Purchase (Amendment) Act 2026, calculates interest based on the current loan balance, making early loan settlement more transparent for consumers.
Brief written by urgent.news from Malay Mail's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
