What is Base Lending Rate (BLR)?
Base Lending Rate (BLR) is a base interest rate calculated by banking institutions based on a mathematics formula that takes into consideration the institutions cost of funds as well as other administrative costs.
You may refer lending rate as simple interest rate. It is a rate which your bank going to charge you in a percentage. In case you loan for RM50,000 and the interest rate of your loan is 7%, The loan that you carried will get accrue to RM3,500 for interest after one year in case you didn’t repay your loan payments. The base interest rate can let you know the basic information on the amount of the money your bank is charging you for the interest each year. Remember that in case you repay your loan payments throughout the year which lower the principal amount of your bank loan, the amount on which the interest has been charged will getting lower as well as the interest that you need to pay.
Refer to wikipedia for more explanation on base lending rate.
Malaysia Base Lending Rate ( BLR ) from 27 December 2010.
|No.||Banking Institution||With Effect From||BLR (% p.a.)|
|1||Affin Bank Berhad||13/07/2010||6.30|
|2||Alliance Bank Malaysia Berhad||13/07/2010||6.30|
|3||Alliance Islamic Bank Berhad||13/07/2010||6.30|
|4||AmBank (M) Berhad||13/07/2010||6.30|
|5||Bangkok Bank Berhad||14/07/2010||6.30|
|6||Bank of America Malaysia Berhad||13/07/2010||6.30|
|7||Bank of China (Malaysia) Berhad||14/07/2010||6.30|
|8||Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad||14/07/2010||6.00|
|9||CIMB Bank Berhad||13/07/2010||6.30|
|11||Deutsche Bank (Malaysia) Berhad||15/07/2010||6.30|
|12||EON Bank Berhad||14/07/2010||6.30|
|13||Hong Leong Bank Berhad||14/07/2010||6.30|
|14||HSBC Bank Malaysia Berhad||13/07/2010||6.30|
|15||J.P. Morgan Chase Bank Berhad||15/07/2010||6.20|
|16||Malayan Banking Berhad||13/07/2010||6.30|
|17||OCBC Bank (Malaysia) Berhad||13/07/2010||6.30|
|18||Public Bank Berhad||13/07/2010||6.30|
|19||RHB Bank Berhad||13/07/2010||6.30|
|20||Standard Chartered Bank Malaysia Berhad||13/07/2010||6.30|
|21||The Bank of Nova Scotia Berhad||14/07/2010||6.30|
|22||The Royal Bank of Scotland Berhad||15/07/2010||6.00|
|23||United Overseas Bank (Malaysia) Berhad||13/07/2010||6.30|
This BLR table is just for your reference. You should check with respective for the latest base lending rate.
The table shows the Base Lending Rate (BLR) record for Malaysia from 1989 to 2010.
|2010||6.30||Adjusted July 2010|
|2010||6.05||Adjusted May 2010|
|2010||5.80||Adjusted March 2010|
|2008||6.75||Adjusted March 2009|
The base lending rate has remained more or less the same throughout the years. For Malaysia, the highest BLR rate ever experienced was 12.27% during the South East Asia financial crisis in year 1998. With the interest rates of the bank interest rates decreasing, many home owners will want to go for refinance their house. The recommended principle for house refinancing will be at the time when BLR is at least 1% lower compare to the rate for your existing property at the time you signed for the loan. Besides, you have as well to be aware of additional circumstances such as the value of the property value as well as your earning.
Most banks in Malaysia are undergo restructuring and merging, and the 6.5% BLR is expected to continue to be for some time until except in cases where the home and property bubble bursts and banks have to revamp in line with the situation of regional economy.
You may occasionally refer to this site for latest base lending rate changes that are changing from time to time.