Checked 5 November 2026 · General information

What is the difference?

A flat rate uses the original principal throughout the term. An effective rate reflects the amount received and the timing of repayments. Compare effective rates on the same basis and check total repayment.

Example with RM10,000 over three years

At a 6% annual flat rate, interest is RM10,000 × 6% × 3 = RM1,800. Total repayment is RM11,800, or about RM327.78 a month over 36 months, before fees. These figures are illustrative.

What to check in an offer

Record the amount you will receive, the number of instalments, total repayment and any fees. CIMB Cash Plus publishes rates alongside equivalent effective rates as a reference for comparison.

Original referenceRead the official source