Overnight Policy Rate (OPR)

Overnight Policy Rate (OPR) is the interest rate / profit rate at which a bank lends to / receives from investment with another bank. The OPR is determined by Bank Negara Malaysia (BNM) in the Monetary Policy Committee (MPC) Meeting held throughout the year.

OPR changes will directly influence Base Lending Rate (BLR) / Base Financing Rate (BFR) revisions. A rise in OPR means the bank will increase the BLR / BFR and resulting in a higher effective interest rate / effective profit rate which will increase the loan/financing repayment / payment for products tagged to BLR / BFR.

Example: Assuming that BLR / BFR is at 6.60%, a 0.25% hike in OPR will increase BLR / BFR from 6.60% to 6.85% respectively.
A drop in OPR means the bank will decrease the BLR / BFR which resulting in a lower effective interest rate / effective profit rate which will decrease the loan / financing repayment / payment for products tagged to BLR / BFR.

Example: If there is a 0.25% drop in OPR, BLR / BFR will reduce from 6.60% to 6.35% respectively.

FREQUENTLY ASKED QUESTIONS (FAQs)

1. Is the increase in BLR / BFR applicable to all types of facilities

The increment in BLR / BFR is applicable to all home loans / financing or personal financing facilities with interest / profit rates pegged to the bank's BLR / BFR.

2. Can I opt to retain the amount of my existing monthly instalment

Yes, you can submit a request through Banks if you wish to maintain the existing monthly instalment amount and extend the loan / financing tenure but it will be subject to approval. You will be issued a supplementary Letter of Offer and upon your acceptance.

3. Will there be any fees or charges for a tenure extension request

No. Banks will not charge customers for a tenure extension request. But some banks may imposed processing fees.

4. Will my instalment change again if the BLR / BFR decreases

Yes, your instalment will be adjusted according to the BLR / BFR movement.

5. How do I calculate the revised monthly instalment

This website has a home loan / financing calculator that makes calculating the revised monthly instalment easy for you.
 

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