Latest Base Rates (BR), Base Lending Rates (BLR), and Indicative Effective Lending Rates (Indicative) of Financial Institutions.

Updated: May 12, 2020

Financial Institutions Rates

Financial InstitutionBR (%)BLR (%)Indicative (%)
Affin Bank3.456.314.26
Al Rajhi Bank3.66.54.95
Alliance Bank3.326.173.86
Bangkok Bank3.976.625.17
Bank Islam2.775.723.5
Bank Kerjasama Rakyat3.356.334.15
Bank Muamalat3.316.314.31
Bank of China3.36.14.3
Hong Leong Bank2.885.893.75
Kuwait Finance House36.894.05
Public Bank2.525.723.35

Note: For reference only based on info from BNM. Subject to changes. Indicative rate based on 30-year housing loan/home financing product with financing amount of RM350k and has no lock-in period. E&OE.



Base Rate (BR) replaces Base Lending Rate (BLR) as the main reference rate for new retail floating rate loans effective January 2015.



  • More transparent reference rate to enable better decision by consumers in making loan choices.
  • Better reflect changes in cost arising from monetary policy and market funding conditions.
  • Encourages greater discipline and efficiency among financial institutions in pricing retail financing products.
  • Spreads will always be positive for financial institutions.
  • Stronger link between BR, market interest rates and Overnight Policy Rate (OPR) facilitating more complete adjustments.

What determines Base Rate

  • Financial institutions’ (FI) benchmark cost of funds
  • Statutory Reserve Requirement (SRR)
  • Borrower credit risk
  • Liquidity risk premium
  • Operating costs


Indicative Effective Lending Rate

This rate refers to the indicative annual effective lending rate required by Bank Negara Malaysia (BNM) from FIs with the following criteria

  • Standard 30-year housing loan/home financing product
  • Financing amount of RM350k
  • No lock-in period

Key Rates

  • Overnight Policy Rate (OPR): 3.00% (Last change: May 6, 2019 -0.25%)
  • OPR Floor: 2.75%
  • OPR Ceiling: 3.25%



Which Financial Institution to Choose?

BR is applicable to floating rate loans and financing facilities for individuals.

Your monthly repayment amount will increase or decrease when there is a change in BR.

The move to BR does not affect existing effective lending rates loan indicated in terms of BLR.

Steps to take as a borrower

  1. Compare rates before taking out a new loan. Suggested to compare 3 to 5 different FIs.
  2. Ask for a Product Disclosure Sheets (PDS) including details of effective lending rate and total repayments for your loan amount.
  3. Ask the FI on what factors may lead to change on the BR.
  4. Confirm that your cash flow allows you to afford servicing the loan, especially if the rate goes up.
  5. Look at other factors that may have a impact especially financially. This may include lock-in period, branch availability, and fees charged.


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