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Base Lending Rate (BLR) in Malaysia

What is Base Lending Rate (BLR)?

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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 base lending rate BLRbasic 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
10 Citibank 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.

Year BLR (%) Remark
2010 6.30 Adjusted July 2010
2010 6.05 Adjusted May 2010
2010 5.80 Adjusted March 2010
2009 5.55 n/a
2008 6.75 Adjusted March 2009
2007 6.75 n/a
2006 6.00 n/a
2005 6.00 n/a
2004 6.00 n/a
2003 6.50 n/a
2002 6.50 n/a
2001 6.75 n/a
2000 6.75 n/a
1999 8.00 n/a
1998 10.50 n/a
1997 9.25 n/a
1996 8.50 n/a
1995 6.60 n/a
1994 8.25 n/a
1993 9.50 n/a
1992 9.00 n/a
1991 7.50 n/a
1990 7.00 n/a
1989 7.00 n/a

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.

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