General : 14 Banks Begin Offering Reducing Balance Method For Hire-purchase Financing
BATU KAWAN, Sept 19 (Bernama) -- Fourteen of the 20 banking institutions providing hire-purchase financing had begun offering customers the reducing balance method as of Sept 18, said Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.
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.
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