BNM: Hire-Purchase (amendment) Act 2026 allows fixed, variable rates, adopts fairer reducing balance method

A woman viewing a car for purchase at a Proton showroom in Jalan 223, Petaling Jaya. — AZHAR MAHFOF/The Star

KUALA LUMPUR: The Hire-Purchase (Amendment) Act 2026 (HPAA) continues to allow hire-purchase providers to offer both fixed-rate and variable-rate loans, said Bank Negara Malaysia (BNM).

The central bank said customers will continue to have the option to choose a fixed-rate or variable-rate hire-purchase loan.