Banks more cautious when approving car loans with OPR increased to 2.25% – exp英超直播ect more rejections
Should the OPR be increased further, Lim said hire purchase rates will likely go up as well, making it more expensive and difficult for customers seeking a car loan. “As such, we believe banks will be more careful when it comes to hire purchase approvals. This could potentially result in lower approval rates for hire purchase loans,” he continued.
This is the second time the OPR has been raised this year, with the previous increase announced on May 11, 2022, also by 0.25%, to 2%. Before that, the 英超 OPR was kept at a historic low of 1.75% from July 7, 2020 to March 3, 2022 to provide support to the economy as the nation battled the Covid-19 crisis.
Based on historical data, RHB Investment Bank analyst Jim Lim Khai Xhiang said when the OPR, which has an impact on a bank’s interest rate for borrowings, was at 2% between February 2009 and February 2010, the average approval rate for car loans was 60%. He added that when the OPR was increased to 3% between May 2011 and June 2014, the percentage dropped further to 51%.
The Malaysian central bank also announced on July 6, 2022 that year-to-date, headline inflation has averaged 2.4% – the inflation rate is projected to remain within the 2.2% to 3.2% forecast range for the year.
He added that rising inflation could further weaken the purchas 英超直播 ing power of consumers, which could be made more dire should the government implement measures to reform subsidies. “In our opinion, since purchasing a car is a decision made purely out of discretion, when faced with rising cost of living and higher vehicle prices, users who are more price sensitive may be more inclined to withhold non-essential purchases,” Lim said.
Have you placed a vehicle booking recently? More importantly, did your car loan get approved or rejected, or did you just pa NBA直播 y in cash? Share your experience with us in the comments below.
Banks are now more cautious when it comes to approving car loans, according to a report by Berita Harian. This is in response to Bank Negara Malaysia’s recent decision to raise the overnight policy rate (OPR) by 0.25% to 2.25% on July 6, 2022.