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Rule of 78 loan abolished finally, in Malaysia


Unltd
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On 10/22/2025 at 10:01 AM, kobayashiGT said:

ya lah. big news sia. hahahah. I tot we no more rule of 78. 😅

Bro, you better update the title le.

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Hypersonic
On 10/22/2025 at 9:46 AM, Unltd said:

Seems like in 1 area, Malaysia is more forward thinking and protects consumers more than Singapore.

https://theedgemalaysia.com/node/773936
 

they abolished this loan which is front loaded. Hopefully it will happen in Singapore too.

This is not LOWYAT forum .. WTF..

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On 10/22/2025 at 9:46 AM, Unltd said:

Hopefully it will happen in Singapore too.

Dont lah! Think of the poor salesperson commission and the sweet sweet rebates the banks give our dealers. How will they survive!

Sarcasm aside, if MAS was serious about this farce, they would mandate that dealers cannot lock in only 1 bank option for loan or buyer has to deal direct with bank.

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(edited)
On 10/22/2025 at 10:22 AM, Volvobrick said:

Irrelevant to MCF members... 

Relevant lah, if less fat from loan comm, then less no-loan penalty.

 

Best is MAS say no loan allowed at all, then COE drop.

Edited by Ake109
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5th Gear

This is relevant, Singapore is always touted as having one of the best financial systems and regulations in the world. If our neighbors can one up us like this, it is a push for us to do better. So this should be big talking news here, to push for perhaps a ban on it. Many developed countries have already banned it, now even Malaysia has done that.

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Sinkapore are known to be pro-business, and hardly pro-consumer lah.

Gov will say if you have any issue with loan, then don't take lah.. :D

 

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Turbocharged
On 10/22/2025 at 11:22 AM, Unltd said:

This is relevant, Singapore is always touted as having one of the best financial systems and regulations in the world. If our neighbors can one up us like this, it is a push for us to do better. So this should be big talking news here, to push for perhaps a ban on it. Many developed countries have already banned it, now even Malaysia has done that.

Won't happen lah. Rule of 78 benefits the lender, and SG has always been pro-business. They cannot make the banks unhappy.

Just last week only got someone write in to complain:
https://www.straitstimes.com/opinion/forum/forum-review-how-interest-is-charged-for-car-loans

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Twincharged
On 10/22/2025 at 10:31 AM, Ake109 said:

Relevant lah, if less fat from loan comm, then less no-loan penalty.

 

Best is MAS say no loan allowed at all, then COE drop.

dont need no loan.. only need limited load of 3 years duration and 30% max.

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Supercharged
Quote

“The real shift is in perception,” he says. “It’s not about banks losing money. It’s about borrowers finally seeing the true cost of their loans.”

This is what is important about abolishing Rule 78.

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5th Gear
On 10/22/2025 at 12:57 PM, Benarsenal said:

Won't happen lah. Rule of 78 benefits the lender, and SG has always been pro-business. They cannot make the banks unhappy.

Just last week only got someone write in to complain:
https://www.straitstimes.com/opinion/forum/forum-review-how-interest-is-charged-for-car-loans

Someone need to ask minister or discuss in parliament, then there is real pressure to change it. This is the perfect time because we can cite Malaysia boleh, Singapore tak boleh? LOL

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(edited)
On 10/22/2025 at 3:06 PM, Unltd said:

Someone need to ask minister or discuss in parliament, then there is real pressure to change it. This is the perfect time because we can cite Malaysia boleh, Singapore tak boleh? LOL

You want interest rate from Ah Long, Moneylender or Bank?

What is the point of your question?

I say but you don't listen. You listen but you don't understand.

We want to give consumers more choice.

The free market can decide which option the consumer wants.

Do you need more light for your gas?

Edited by Ake109
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