Did you know that for YEARS, Malaysians have been paying extra thousands of ringgit to banks without even realizing it? 😱
Well, good news — the infamous “Rule of 78” that’s been quietly eating into your money… is finally ABOLISHED! 🙌
Let’s break down what it means, why it matters, and how YOU can finally stop banks from taking what’s yours.
💡 What Is the “Rule of 78”?
The “Rule of 78” is a sneaky formula banks used to calculate interest on car loans (and sometimes personal loans).
Instead of charging you interest evenly over the loan period, this rule makes you pay most of the interest in the first few months of your loan.
👉 Meaning: even if you settle your loan early, you STILL end up paying more interest than you should!
Sounds unfair, right?
That’s because it is! 😤
🚫 Rule of 78 Is ABOLISHED in Malaysia!
Bank Negara Malaysia (BNM) has finally stepped in to protect consumers.
Starting from recent changes, the Rule of 78 is no longer allowed for new hire-purchase loans!
✅ Fairer interest distribution
✅ More savings if you settle early
✅ More transparency from banks
This means when you pay off your car loan early, you’ll actually save the full interest you deserve — not just a small portion.
💸 Real-Life Example: How Much You Could Save
Let’s say you took a RM60,000 car loan for 7 years.
Under the Rule of 78, if you settle after 3 years, you might still pay up to RM5,000 more interest than the fair calculation.
Now that it’s abolished, that RM5,000 stays in your pocket! 💵
🧠 What You Should Do Next
Check your loan agreement – make sure it doesn’t mention “Rule of 78” or “sum-of-digits method.”
Ask your bank about the interest calculation if you’re refinancing or settling early.
Compare loans – not all banks give fair terms, even after the rule is abolished.
Plan your repayment – early settlement now makes real financial sense!
⚠️ Why This Matters for Every Malaysian
Banks make money from interest — that’s no secret. But hidden formulas like this have made Malaysians overpay for decades.
Now that the rule is gone, it’s time to be smarter with your money.
Don’t just celebrate — take action and make sure your next loan is 100% fair.
🏁 Final Thoughts
The abolition of the Rule of 78 is a massive win for all Malaysians! 🇲🇾
It’s proof that financial awareness and public pressure can create real change.
So the next time you’re signing a car loan, remember:
👉 Read the terms.
👉 Ask the right questions.
👉 Don’t let banks “rule” your wallet again.
Because your hard-earned money should work for YOU — not for them. 💪💸
💬 What Do You Think?
Have you ever been caught in the Rule of 78 trap?
Share your story in the comments below — and tag a friend who’s still paying for their car loan! 🚗💥
#KakiForex #RuleOf78 #BankScamMalaysia #FinancialAwareness #CarLoanTips #MalaysiaFinance #BNMUpdates #SmartMoneyMY #LoanHackMalaysia #KakiForexNews
