Checked 5 November 2026 · General information
Key date: 1 January 2027
BNM issued its Personal Financing policy on 30 September 2025. Paragraphs 10.3–10.13 and 10.17–10.18 are scheduled to take effect on 1 January 2027. These provisions were not yet effective at this site’s review date.
Flat rates and Rule of 78
Changes include prohibiting personal financing with interest or profit calculated using a flat rate and/or Rule of 78, alongside effective-rate disclosure requirements. A fixed rate is not the same as a flat rate.
Read the scope carefully
The document covers licensed banks, licensed Islamic banks and prescribed development financial institutions. Do not automatically apply it to all non-bank moneylenders. Read the scope and exclusions in the original document.
Original referenceRead the official source