Advertisement

What is the maximum late payment charge on car loan or hire purchase in Malaysia?

The Hire Purchase Act sets the maximum late payment charges allowed.

Maximum late payment charges:

Fixed rate financing


Not more than 8% per annum calculated on a daily basis on overdue instalments.

Variable rate financing


A rate of 2% above the prevailing rate of term charges (interest rate) imposed.

Back to Hire Purchase (HP)'s Contents


Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)


Back to the top



Sponsored Links

Share this page

Notes
Knowledge Base ID :   1302
Last Reviewed :   May 22, 2014
Source :   BankingInfo
Tags :  

Related Knowledge Base Issues